Different Types of Credit Cards – How To Choose

No Annual Fee Cards

“Yearly fees prevent consumers from buying what they really want,” says Julie Pukas, head of U.S. Bankcard and Merchant Solutions at TD Bank. “Our 2017 Consumer Spending Index revealed that millennials spend nearly $300 more than the average respondent on dining, a total of approximately $2,000 annually.


Cards with reduced perks as compared to some of the rewards peers but without paying yearly for them. While many luxury credit cards charge an annual fee, there is a vast array of top tier credit cards that offer ample rewards without an annual fee. In fact, these include some of the best credit cards around. Credit cards without an annual fee offer much-appreciated savings, a hassle-free experience and other benefits, say experts. In fact, the majority of our picks for the best credit cards have no annual fee.

“Some consumers may save their credit card rewards points so that they can pay off their annual fee,” says Pukas. “By switching to a card with no yearly fee, they can put those rewards to something they really want, like flights, dining out and more.”

What is an annual fee?

An annual fee on a credit card is a charge made each anniversary year. An annual fee might be charged on a credit-builder card, a rewards card or a luxury card, for example. Typically, you are benefiting in some fashion for having the card, such as when it’s a hotel or airline card.

Annual fees can run as low as $25, which the Wells Fargo Secured card charges, to as high as $995, which the Mastercard® Gold Card™ charges. However, surprisingly few credit cards have an annual fee – only 26 out of 100 surveyed, according to a CreditCards.com study, and about half of the cards with annual fees waive that fee the first year. Heads up that no annual fee cards can be among the highest in other fees – of the 15 cards with the highest number of different fees, 11 had no annual fee.

Low Interest Credit Card

Low interest credit cards are credit cards with a low APR. They typically have an APR between 10% and 20%, which is much lower than the average credit card interest rate. Low interest cards can save consumers a substantial amount of money on interest over time. Lower rate cards often have all the features of other credit cards such as a rewards program and the capability to do balance transfers with the added bonus of low APR.

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