Close-up of hand holding out a credit card

Compare no annual fee credit cards

Pay on plastic and save on card costs with a no annual fee credit card.

No fee credit cards let you enjoy a range of benefits without paying a yearly or monthly account fee. Depending on the type of card you choose, you can enjoy no fees for the life of the card or zero fees for a promotional period (such as the first year you have the card). Use this guide to learn how no annual fee credit cards work and compare the features, benefits and drawbacks to find the right no annual fee credit card for you.

Comparison of cards with no annual fee

Comparison ordered by representative APR with affiliated products shown first.
Updated March 25th, 2019
Name Product Balance transfers Balance transfer fee Purchases Rep. APR Incentive Representative example
0% for 27 months reverting to 19.9%
1.5% for transfers in first 60 days
0% for 6 months reverting to 19.9%
19.9%
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
0% for 6 months reverting to 19.9%
2.9% (min. £5)
0% for 6 months reverting to 19.9%
19.9%
Double points on spend in M&S for first 12 months (2 points per £1). Then earn 1 point for every £1 spent at Marks and Spencer's and 1 point or every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
0% for 28 months reverting to 19.9%
0.99% (min. £5) for 3 months reverting to 2.9% (min. £5)
0% for 6 months reverting to 19.9%
19.9%
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point or every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
0% for 20 months reverting to 19.9%
2.9% (min. £5)
0% for 20 months reverting to 19.9%
19.9%
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point or every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
0% for 12 months reverting to 19.9%
3% (min. £3)
19.9%
19.9%
Earn Asda vouchers every time you shop - 1% cashback on all Asda spend, 0.2% on all other transactions and 10% on selected insurance products. Once £2.5 is earnt a voucher can be downloaded to spend in Asda stores.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
0% for 29 months reverting to 19.9%
1.99% for transfers in first 60 days
0% for 6 months reverting to 19.9%
19.9%
Enjoy free ongoing access to your Experian credit score (conditions apply) plus exclusive savings on live events with Barclaycard Entertainment.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
0% for 27 months reverting to 19.9%
2.7% for transfers in first 60 days
0% for 27 months reverting to 19.9%
19.9%
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
0% for 20 months reverting to 19.9%
0% for transfers in first 60 days
0% for 6 months reverting to 19.9%
19.9%
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).

Compare up to 4 providers

Updated March 25th, 2019
Name Product Purchases Balance transfers Annual/monthly fees Rep. APR Incentive Representative example
0% for 8 months reverting to 19.9%
0% for 8 months reverting to 19.9%
£0
19.9%
Cash exchange fee waived when used to purchase foreign currency in Post Office branches or online.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
0% for 20 months reverting to 19.9%
0% for 20 months reverting to 19.9%
£0
19.9%
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point or every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
19.9%
0% for 12 months reverting to 19.9%
£0
19.9%
Earn Asda vouchers every time you shop - 1% cashback on all Asda spend, 0.2% on all other transactions and 10% on selected insurance products. Once £2.5 is earnt a voucher can be downloaded to spend in Asda stores.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
18.9%
0% for 27 months reverting to 18.9%
£0
18.9%
Earn cashback with selected retailers via Visa Offers, customers can register up to five separate first direct Visa cards.
Representative example: When you spend £1,200 at a purchase rate of 18.9% (variable) p.a., your representative rate is 18.9% APR (variable).

Compare up to 4 providers

Updated March 25th, 2019
Name Product Annual/monthly fees Min. credit limit Max credit limit Rep. APR Incentive Representative example
£0
£250
Subject to status: £1,000
24.7%
Representative example: When you spend £1,000 at a purchase rate of 24.7% (variable) p.a., your representative rate is 24.7% APR (variable).
£0
£150
Subject to status: £1,200
24.9%
No fees for making purchases or withdrawing cash abroad – currencies are converted at the standard Mastercard exchange rate.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
£0
£250
Subject to status
27.5%
Collect 1 Tesco Clubcard point per £4 spent (£4 minimum) in Tesco and 1 Clubcard point per £8 spent (£8 minimum) outside Tesco in each purchase transaction.  Must have available credit to collect Clubcard points. Clubcard points are turned into Clubcard vouchers every 3 months or sooner using Faster Vouchers. Clubcard vouchers can be used in Tesco or with Clubcard Reward Partners to get even more value on dining out, hotel stays and travel.
Representative example: When you spend £1,200 at a purchase rate of 27.542% (variable) p.a., your representative rate is 27.5% APR (variable).
£0
£250
Subject to status: £1,000
29.3%
Representative example: When you spend £1,000 at a purchase rate of 29.3% (variable) p.a., your representative rate is 29.3% APR (variable).
£0
£250
Subject to status: £1,000
29.8%
Representative example: When you spend £1,000 at a purchase rate of 29.84% (variable) p.a., your representative rate is 29.8% APR (variable).
£0
£100
Subject to status: £600
34.9%
Earn Asda vouchers every time you shop - 1% cashback on all Asda spend, 0.2% on all other transactions. Once £2.5 is earnt a voucher can be downloaded to spend in Asda stores.
Representative example: When you spend £1,200 at a purchase rate of 34.9% (variable) p.a., your representative rate is 34.9% APR (variable).
£0
£150
Subject to status: £1,200
34.9%
Free access to your Experian Credit Score.
Representative example: When you spend £1,200 at a purchase rate of 34.9% (variable) p.a., your representative rate is 34.9% APR (variable).
£0
£150
Subject to status: £1,000
39.9%
Representative example: When you spend £1,000 at a purchase rate of 39.94% (variable) p.a., your representative rate is 39.9% APR (variable).

Compare up to 4 providers

What is a no annual fee credit card?

A no annual/monthly fee credit card doesn’t charge you for account maintenance, which is 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.

Credit cards that involve an annual or monthly fee typically come with more rewards than no-fee cards, so consider how you use your card. It may be the case that added benefits such as travel insurance or cashback on purchases outweigh the expense of the fees involved.

card-couple-250x250-shutterstock

What is the best no annual fee credit card?

There isn’t one best no annual fee credit card. Comparing your options, the conditions of the no annual fee offer and the features of the card will help you to find the right one for you.

Promotional offers and perks available on no annual fee credit cards

If you want more benefits than just savings on your credit card’s annual/monthly fee, compare credit cards that couple zero fees with anything from a 0% balance transfer offer to a rewards programme.

No annual fee credit cards with a 0% balance transfer offer

Balance transfer credit cards let you move debt from an existing credit card to a new card with a low or 0% promotional interest rate. With no annual/monthly fee and a low or 0% balance transfer offer, you could have a cost-free way to consolidate your debts.

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?

NAFcard-questions250x250-shutterstock

If you’re interested in getting a no annual/monthly 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/monthly 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? No annual/monthly fee credit cards sometimes have higher interest rates than others, which can mean it takes longer – and is more expensive – to clear a balance. If that’s the case, you might want to consider a low interest credit card instead.
  • Do you have existing debt? If you have existing debt, getting a no annual/monthly fee credit card could tempt you to spend more money than you can afford. Aim to pay off your current debts, or consider a balance transfer credit card to save money on interest charges.
  • What credit card benefits do you want? No annual/monthly fee credit cards sometimes have fewer perks than other options. If you’re interested in features such as rewards programmes and complimentary insurance, make sure you look at a range of cards and consider these factors as well as the annual or monthly fee so that you can find an option that suits all of your needs.
  • Will you use the credit card after the zero annual/monthly 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/monthly fee cost, you might want to consider switching cards to a zero fee option before the annual fee applies.

Benefits and drawbacks of zero annual/monthly fee credit cards

Benefits

  • Save money on your credit card. The most obvious perk of these cards is that you won’t pay an annual or monthly fee. This could save you a significant amount over the life of the card.
  • Practical. Without the extra perks and additional benefits, no annual/monthly fee credit cards can be ideal for emergencies and when extra credit is required.
  • Promotional offers and deals. Some no annual/monthly fee credit cards come with promotional offers, frequent flyer programmes and other perks that you’d regularly have to pay a yearly fee to access.

Drawbacks

  • Higher interest rates. Credit card companies may charge higher ongoing interest rates on no annual/monthly 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/monthly fee cards do come with frequent flyer programmes and other benefits, they usually have fewer features than cards that charge annual or monthly fees.
  • Temporary £0 annual fee. Unfortunately, not all of these cards offer no annual/monthly fee for the life of the card. If your card only offers zero fees 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 zero annual/monthly 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 fee, but also the other features, benefits and costs of the card before you apply.

card-questions-895x254-shutterstock

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?
    This is possible as long as you don’t have a balance on the card and cancel it before the annual or monthly fee is applied. Contact your provider to confirm exactly when the 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?
    The way you pay the fee depends on your bank and the type of credit card you have. Some credit cards involve a monthly fee, which will be added to your monthly statement. Banks which charge annual fees may charge the full year’s fee upon account activation, or break it down into smaller regular payments. You can either pay the fee in full, or over time, as you would pay for any other purchase on your credit card.
  • Q: When will the annual fee be charged if I get a credit card that offers no annual fee in the first year?
    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?
    Some banks will waive annual fees for an extended period if you take out another product with them, such as a loan, savings account or mortgage. You can also ring your bank and simply ask if they’ll consider waiving your fees for longer – they want to retain happy customers, after all.
  • Q: What is the best no annual fee credit card?
    Because everyone has different preferences and needs, there is no such thing as the “best” no annual/monthly fee credit card. Instead, you should consider whether or not zero fees are a promotional offer or an ongoing feature, and the other costs and features that come with the card. Make sure that the card is an affordable and functional way to manage your finances before you apply.
  • Q: I want a no annual fee credit card for travel. What other features should I consider?
    To keep your travel costs down, you may want to consider a credit card with no annual or monthly fees 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?
    Many business credit cards offer no annual fee promotions. Business credit cards can often charge high annual fees and/or rates of interest, as they tend to come with a lot of extra features.
  • Q: Can I get a no annual fee credit card if I have lots of debt or bad credit?
    Having a bad credit rating can limit your chances of being approved and getting the card.
Barclaycard Platinum 29 Month Balance Transfer Visa
Barclaycard Platinum 29 Month Balance Transfer Visa

Balance transfers:

0% for 29 months reverting to 19.9%

Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).

M&S Bank Transfer Plus Mastercard
M&S Bank Transfer Plus Mastercard

Balance transfers:

0% for 28 months reverting to 19.9%

Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).

ASDA Money Cashback Plus Credit Card Mastercard
ASDA Money Cashback Plus Credit Card

Balance transfers:

0% for 15 months reverting to 19.9%

Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a. with a fee of £3 per month, your representative rate is 26.2% APR (variable).

ASDA Money Cashback Credit Card Mastercard
ASDA Money Cashback Credit Card

Balance transfers:

0% for 12 months reverting to 19.9%

Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).

*Disclaimer: The offers compared on this page are chosen from a range of products whose details Finder has access to track; they don't represent all the products available in the market. Unless indicated otherwise, products are displayed in no particular order or ranking. The terms "best", "top", "cheap" (and variations) are not product ratings and are subject to our terms of use. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

4 Responses

  1. Default Gravatar
    D.GMay 14, 2018

    I am looking for a credit card with no monthly/yearly fee. I don’t intend to use it, it is purely to enhance my credit score. Is this a good idea?

    • finder Customer Care
      JoshuaMay 14, 2018Staff

      Hi D.G,

      Thanks for getting in touch with finder. I hope all is well for you. :)

      It is worth noting that every time you open a new credit card account, it could cost a few credit score points. Thus, the mere action of opening one can affect your score.

      If you don’t intend to use it and you consistently have a zero balance, there’s a chance that your issuer will stop reporting to the credit bureau or worse, close the account. So, in this case, it won’t improve your score and worse, it might even decrease it.

      To improve your credit score, you may do the following:

      Order a copy of your credit report. Request a free credit report from the major bureaus to stay on top of making sure that lenders see only the most accurate picture of your financial health. Confirm that your personal information, employment data, open accounts and balances and other financial details are current and accurate. If you discover any errors, dispute them with the three credit bureaus and the provider that reported them.
      Pay down your credit card accounts. Your overall credit score is determined by many variables, including your credit utilization rate. To indicate to lenders that you’re a responsible borrower, only carry a balance with a utilization of 30% or less. For example, if your credit limit is $1,000, keep your balance below $300, which is 30% of your limit.
      Don’t attempt to open new accounts until your score improves. Every time you apply for credit, it’s listed on your credit report and pulls down your score. By waiting, you can take advantage of better interest rates.
      Avoid hastily closing unused accounts. While this sounds like a good strategy in theory, having only newer accounts will result in a lower score. Lenders want to see a long history of credit in your report.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  2. Default Gravatar
    Kai-uweMarch 16, 2018

    Hello, I would like to get a credit card with the lowest costs. I need it just for the UK, purchasing in supermarkets, coffees etc..

    • finder Customer Care
      JoshuaMarch 25, 2018Staff

      Hi Kai-uwe,

      Thanks for getting in touch with finder.

      I would like to share with you three pages from our website to help you make a better decision. One option is by looking for no annual fee credit cards. You will find your options on this page.

      Next, explore our low interest rate credit cards. On that page, you should be able to get more familiar with credit cards with low interest.

      Finally, please go to this page to compare 0% Purchase Credit Card offers.

      All the pages I mentioned above will help you find the credit card with the lowest cost.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

Go to site