The Top No Annual Fee Credit Cards in the UK

The Top No Annual Fee Credit Cards in the UK - shieldwise
by ratewise

Getting a no annual fee credit card might be beneficial to your credit score in the long run and help you save a considerable amount of money at the end of the year compared to regular credit cards, which may charge up to £90. Many people are unaware of the benefits of a no annual fee credit card because of lack of awareness.

This removes the chance of gaining an avenue for you to save more money so it’s great to get started learning about no annual fee credit cards.

This article will explain everything that you need to know about the best no annual fee credit cards. First, we will discuss the different types of credit that exist and can be applied if you have a poor credit score.

Then we will help you understand what card may benefit you the most.

In the end, we will tell you the best available no annual fee credit cards in the UK, as of 2020 so you can decide the optimal strategy for your finances.

Different Types of Credit Cards

To fit the bill for the best no annual fee credit cards, you need to have a fantastic credit score. In case you’re new to credit, you’ll have to chip away at building your credit first.

Here are a few alternatives for making your credit score higher to obtain a good credit card deal:

Secured credit cards

A secured credit card requires a certain amount of deposit before you can use it. This is very valuable as you submit the desired amount you want to have as credit, and if you are unable to pay back your credit card bill, this deposit will help pay off your bill and save your credit score.

Secured credit cards can help you develop your FICO score, especially if you are new to the credit card world. But you still need to be a salaried person to apply for a secured credit card.

Student credit cards

Mainly aimed to cater to students, a student credit card only works if you have an income or revenue stream that you can prove is yours.

If you are under 21 years old, you need to have an income stream, but above 21, you can use your partner’s salary or your guardian’s to show to the bank.

Authorized users

Instead of creating your new account and credit card, you can easily apply it to someone else’s bank account. Whatever the total bill is, it will be charged to the report, and you, who has no credit score, can improve your ratings without too much trouble.

Now that you know some of the different types of credit cards to help you make an educated decision, here are some relevant questions to ask yourself.

By understanding what your situation is, you can ensure that you do not make the wrong decision and your FICO rating goes up instead of down.

These will help you gauge why you need a no annual fee credit card and how you can benefit from it:

How often will you use it?

If you want a credit card solely for emergency purposes and do not want to use it regularly, then a no annual fee credit card is the way to go. There are no hidden costs, but it also does not require you to charge it frequently.

How deep are you in credit?

If you already have a pending balance over your head that needs to be cleared and are not interested in going further down in the rabbit hole, then a no annual fee credit card is a good idea.

What type of benefits are you looking for?

Different cards have different packages and promotions. Choose the one you think fulfils all of your requirements.

If you are a frequent traveller, then look for the no annual fee credit cards that give sky miles in exchange for purchases. By making the right choice, you can eliminate unwanted stress effectively.

Benefits of no annual fee credit cards

  • Get a good deal on Visa charges. The most evident advantage of these cards is that you won’t pay a yearly expense. This could spare you tens, hundreds, or thousands of dollars over the life of the card.
  • Functional and financially savvy. No annual fee credit cards can be perfect for emergencies, and when additional credit is required. This is because you can leave it in your wallet without worrying about it costing you when you’re not using it.
  • Limited time offers and arrangements. Some no annual fee credit cards accompany limited time offers, long-standing customer programs, and different advantages that you’d normally need to pay an annual expense to get.

Here are some other significant benefits you can gain if you sign up for a no annual fee credit card:

Prizes

You don’t need to get a credit card with an annual fee to get rewards. Sometimes, no annual fee credit cards have rewards and prizes just like credit cards with fees.

Free FICO rating

Many no annual fee credit cards offer a free financial assessment month to month or quarterly without you having to make an effort.

Vehicle rental protection and emergency aides

Different cards permit you to use it to benefit your essential protection. Some no annual fee credit cards also offer emergency aides for such occasions as towing, fuel conveyance, and tire changing.

Concierge and travel assistance

Some no annual fee credit cards offer lots of customized help with meals, layovers, and travel 24 hours every day with your concierge or travel guide.

Building credit

On the off chance that you get a no annual fee credit card, that is one less charge to stress over.

It will help you build your credit and improve your FICO rating by eliminating unnecessary costs and not have you worry every year about paying for your card.

Cons of no annual fee credit cards

  • Higher loan fees. No annual fee credit cards have a higher interest rate on purchases than some other cards. This could add to your expenses if you consistently keep a balance on your card from month to month. If you pay off your bill amount every month, consider a card with both no annual fee and a high interest rate.
  • Less additional benefits. While some no annual fee credit cards do accompany long-standing customer programs and different advantages, they typically have fewer benefits than cards with a higher yearly expense.
  • Limited time no annual fees. Shockingly, some of these cards offer no annual cost for the life of the card. If your card has no annual fees for a particular period, be sure you know when the annual fee will start to be applied and the amount of the fee to dodge any unexpected fees.

As there are numerous sorts of no annual fee credit cards available, it’s essential to consider your financial circumstances and how you plan to utilize the card.

Pair them

It is a sensible idea to keep two cards with you at hand for your benefit. A no annual fee credit card combined with a charged credit card can enable you to improve your credit score and reap the benefits to the maximum extent.

While a no annual fee credit card can have excellent money-back remunerations on your spending, it might not have same benefits package as a credit card with fees.

With a no annual fee credit card, you can get travel and purchase benefits, sky miles, even credits with Uber – everything you likely won’t get with your cash back card. You can also utilize those extra Uber credits for food deliveries or free rides!

In any case, if you play it right, you can utilize the money back, no annual fee card for all of your spending, and use the travel card to get a sizable sign-up reward with your preferred hotels or airline.

This concludes our article to help you understand the details about no annual fee credit cards that you can get in the UK as of 2020.

It is important to note that while there are hundreds of options to choose from, you should consider your financial situation and the purpose you intend to use the card for before applying for any of them.

While no annual fee credit cards may seem like a great deal, note they come with higher interest rates and other benefits that might be of use to you compared to regular credit cards.

So, you have to be extremely thorough with your research and analysis when selecting the right no annual fee credit card for yourself.

Do you get charged every time you use your credit card?

You won’t get charged immediately every time you use your credit card to make a purchase. But when you use your credit card you may be charged a fee if you withdraw cash at an ATM. You’ll also be charged interest if you don’t make your credit card bill payments on time.

Does having several credit cards hurt your credit score?

Having multiple credit cards won’t hurt your credit score if you are able to keep your spending within your budget and you make your bill payments in full on time.

You have to know your ability to organize your finances and track multiple credit cards.

Is it better to cancel unused credit cards or keep them in the UK?

It is better to actually keep your unused credit cards open so you have a longer credit history and amount of credit available to you.

This will potentially raise your credit score and help you if you apply for a loan in the future.

Is it bad to pay your credit card twice a month?

It is not bad to make multiple credit card payments every month. The most important thing is that you do not exceed your credit limit and you make your payments on time to avoid interest and fees. 

How many is too many credit cards?

You can have as many credit cards as you feel you will use. However, try not to apply for more than one credit card every six months as this could harm your credit score. 

Read More

Categories: Credit Cards
Tags: Top 10 UK