No annual fee credit cards let you enjoy a range of features and perks without having to pay a yearly account fee. Depending on the type of card you choose, you’ll enjoy no annual fee for the life of the card or a S$0 annual fee for a promotional period (such as the first year you have the card). There are also some credit cards that offer a waived annual fee on an ongoing basis if you meet specific spending criteria.
No annual fee credit cards can also give you a variety of other benefits including balance transfers, rewards or frequent flyer points and other travel benefits. Use this guide to learn how no annual fee credit cards work and compare the features, benefits and costs so you can find a credit card to suit your needs.
Compare no annual fee credit cards in Singapore
What you need to know about no annual fee credit cards
A no annual fee credit card doesn’t charge you for yearly account maintenance, which could save you anywhere from S$30 to S$700 or more per year. This type of credit card can be ideal if you want to keep your costs low or if you don’t use your card regularly and can’t justify paying high fees.
But credit cards with no annual fee for life can come with higher standard purchase rates than other options. So if you regularly carry a balance from month to month, a card with a low-interest rate might help you save more money than a no annual fee credit card. Some no annual fee credit cards also offer fewer additional features, so you may miss out on rewards or complimentary extras.
What types of no annual fee credit cards are available?
While some no annual fee credit cards are very basic, others offer a range of additional features and benefits. If you want to get access to other credit card features while paying a S$0 annual fee, you can use the sections below to compare credit cards that combine a S$0 annual fee with everything from 0% balance transfer offers to bonus rewards points and complimentary extras.
No annual fee frequent flyer credit cards
Frequent flyer credit cards give you a way to earn more points through your everyday spending but usually come with high annual fees – especially if there are other travel benefits on offer. But there is a selection of frequent flyer credit cards that offer no annual fee for the first year. Depending on the card and offers available, you can also get frequent flyer cards with a reduced or low annual fee in the first year, which helps you save on costs in the short-term. You could also consider the Maybank Horizon Visa Signature Card or HSBC Revolution Card if you want a frequent flyer credit card with low minimum spend annual fee waiver.
Platinum no annual fee credit cards
Platinum credit cards offer more premium perks than regular ones, such as complimentary travel insurance, purchase insurance, S$0 overseas transaction fees, airport lounge access and concierge services. Depending on the card you choose, you could also get a higher rate of points per S$1 spent. Most platinum cards have annual fees that offset the value of these perks, so getting one that has a S$0 annual fee will help you get more from all the benefits on offer.
No annual fee credit cards with 0% purchase rates offers
Want to save on interest costs as well as annual fees? A card with no annual fee and an introductory 0% purchase rate gives you a way to make interest-free purchases during the promotional period. For example, you could get a S$0 annual fee card that offers 0% p.a. on purchases for the first 6 months. After the introductory period, the 0% interest rate reverts to a standard variable rate that will apply to any balance remaining from your purchases. So this type of offer is usually popular for people who have a lot of spending to do in a short amount of time, such as around the holiday season.
Reward credit cards with no annual fee
These cards have no annual fees and earn reward points for every S$1 spent. Depending on the card, you could also enjoy thousands of introductory bonus points when you meet specific spending requirements. For example, a card may give you 30,000 points if you spend S$3,000 in the first 3 months from when your application’s approved. This can help you get even more value from the card when you first get it.
Travel credit cards with no annual fees and no foreign transaction fees
While most credit cards charge between 2% and 3.5% for transactions made in a foreign currency, some travel credit cards waive this cost and also have no annual fee. Since you’re likely to only be using a travel credit card during your holiday, you could save on your costs by choosing one with a low or S$0 annual fee.
Interest-free credit card spending hack
Most credit cards offer a number of interest-free days on purchases when you pay your account balance in full by the due date on your statement. This gives you a way to make interest-free purchases on an ongoing basis.
What should I consider before applying for a no annual fee credit card?
If you’re interested in getting a no annual fee credit card now, ask yourself these questions to help compare your options:
- How often do you use your credit card? If you rarely use a credit card but still want one for unplanned expenses or emergencies, a no annual fee option will give you the features that you need without burning a hole in your pocket while you’re not using it.
- Do you carry a balance? The higher interest rates typical of no annual fee credit cards can make them expensive if you carry a balance. If that’s the case, you might want to consider a low-interest credit card instead.
- What credit card benefits do you want? No annual fee credit cards sometimes have fewer perks than other options. If you’re interested in features such as rewards programs and complimentary insurance, make sure you look at a range of cards and consider these factors as well as the annual fee so that you can find an option that suits all of your needs.
- Will you use the credit card after the S$0 annual fee promotion ends? If the card comes with no annual fee for a promotional period, consider whether you want to use the card once the introductory period ends. If the card doesn’t have a competitive interest rate or extra features to outweigh the annual fee cost, you might want to cancel the card before the annual fee applies. If you’d prefer to skip that hassle altogether, compare cards with a low or S$0 annual fee for life.
- What other fees and charges will you pay? While a S$0 annual fee can help you save on costs, it doesn’t mean you’ll be getting a free credit card. As well as interest rates, make sure you check for other costs that could apply, such as foreign transaction fees, late payment fees and cash advance costs. This will help you find a card that’s affordable based on how and when you plan to use it.
Benefits and drawbacks of S$0 annual fee credit cards
- Save money on your credit card. The most obvious perk of these cards is that you won’t pay an annual fee. This could save you tens, hundreds or thousands of dollars over the life of the card.
- Practical. Without the extra perks and additional benefits, no annual fee credit cards can be ideal for emergencies and when extra credit is required.
- Promotional offers and deals. Some no annual fee credit cards come with promotional offers, frequent flyer programs and other perks that you’d regularly have to pay a yearly fee to access.
- Higher interest rates. Credit card companies may charge higher ongoing interest rates on no annual fee credit cards. This could add to your costs if you regularly carry a balance from month to month.
- Fewer extra features. While some no annual fee cards do come with frequent flyer programs and other benefits, they usually have fewer features than cards with a higher annual fee.
- Temporary S$0 annual fee. Unfortunately, not all of these cards offer no annual fee for the life of the card. If your card only has a S$0 annual fee for a promotional period, make sure you know when the standard annual fee will apply and how much it is to avoid any surprise costs.
As there are many types of S$0 annual fee cards on the market, it’s important to consider your financial situation and how you intend to use the card. Make sure to consider not only the conditions of the annual fee, but also the other features, benefits and costs of the card before you apply for a credit card with no annual fee.
Answers to the most popular questions about no annual fee credit cards
Q: If I have a credit card with a promotional annual fee offer, can I cancel the card before having to pay the annual fee?
A: This is possible as long as you don’t have a balance on the card and cancel it before the annual fee is applied. Contact your provider to confirm exactly when the annual fee is charged, so you don’t accidentally pay it before cancelling the card.
Q: When do you normally pay the annual fee on a credit card?
A: The annual fee is usually charged upon account activation, with payment required by the due date on your first statement or first credit card bill. You can repay your annual fee in full or over time by making a payment to your credit card account.
Q: When will the annual fee be charged if I get a credit card that offers no annual fee in the first year?
A: If you have a card with a promotional no annual fee offer, the fee will usually apply 12 months after you were approved for the card. If you don’t want to pay this fee when the offer ends, confirm with your bank when the annual fee will be charged and cancel your card before that time.
Q: Is there any way to extend my annual fee waiver?
A: Some banks package mortgage deals to include fee waivers on your other accounts, including credit cards. For instance, some institutions waive fees for their credit cards when you also take out a home loan package with them. Contact your credit card provider to find out if this option is available, or if there are any other ways you can continue to pay no annual fee.
Q: Is a no annual fee credit card free?
A: Technically, there is no such thing as a “free credit card” because there is always the potential cost of interest if you carry a balance, as well as other fees that may apply for certain transactions (such as cash advances or purchases made overseas). But if you have a no annual fee card and pay off your account balance in full by the due date on each statement, you can get an interest-free period for your purchases that could allow you to use the card without paying any fees or charges.
Q: I want a no annual fee credit card for travel. What other features should I consider?
A: To keep your travel costs down, you may want to consider a credit card with no annual fee and no overseas transaction fees or a card that offers complimentary travel insurance. Also, make sure that the card you’re using is accepted wherever you’re travelling and that it isn’t restricted by economic sanctions.
Q: Is there a business credit card with no annual fee?
A: Business credit cards can offer no annual fee promotions, but most of them charge high annual fees as they come with a lot of extra features. Compare business credit cards here.