When you get a credit card, you can either choose one with an annual fee or one without it. Sure, cards that come with an annual fee do offer extra benefits like unlimited air miles, lounge access, 24X7 concierge services, and more. But do these perks justify the hefty yearly fees you’ll have to shell out?
Not always. So, here are a few instances where you might want to go with a no-fee card instead of paying an annual fee.
If You Aren’t Spending Much
It’s no secret that credit cards with annual fees offer more attractive schemes. However, one can only benefit from them if they spend enough using their credit card.
But what if you aren’t a big spender? In this case, credit cards with no annual fee are the more cash-conscious choice. Why? Because paying an annual fee for benefits you can’t enjoy makes no sense.
But that doesn’t mean no-fee credit cards don’t have their perks. You can still get essential perks like cashback, discounts, surcharge waivers, etc., depending on your card issuer.
If You Can’t Afford the Annual Fee
This one is a no-brainer. If finances are tight and you don’t need any unnecessary expenses in your budget, paying a credit card fee can seem a bit excessive. So, it’s best to choose a no-fee card for the time being, as you can always upgrade your card to enjoy the extra benefits.
If You’re Getting a Card to Refinance Your Debt
If you are looking to save money on high-interest debt, you should get a credit card that supports balance transfer. While many credit card issuers offer a period of 0% interest after a balance transfer to help you save some money, you can save even more if you opt for a card with no annual fees.
If You Want to Build Up Your Credit Score
Often credit bureaus factor in the age of all your credit lines, including credit cards, to determine your credit score. So, if you have a long history of managing credit well, you can increase your credit score over time.
When you opt for a credit card with no annual fee, you can keep your credit card active without paying any extra charges for it, making financial management easy. This helps you build your credit history and ultimately raise your credit score as well.
With a lot of banks such as IndusInd Bank offering instant credit cards online, you can easily apply for something that meets your specific needs. However, before you get a credit card, make sure to compare card offerings from multiple issuers and read the fine print to avoid any surprises in the future. To find out more about the different types of instant credit cards, visit IndusInd Bank today.