A credit that is issued with no annual or monthly charges attached to them comes under the No Annual Free Credit cards schemes. The Australian Credit Lenders, in general offer, two kinds of No Annual Fee Credit Card schemes. The first type of scheme offers Credit Cards with absolutely no annual fee. The downside of the scheme is that interest rates are high with no interest free period for the user. The second type of the No Annual Fee Credit Card scheme comes with a 44 day ‘no interest’ period and more importantly cheaper interest rates. But the No Annual Fee stands for the first year alone. From the second year Annual Fee would be charged. In Australia the Woolworth’s Everyday Money card is one Credit Card lender which offers No Annual Fee Credit Cards with cheaper interest rates.

The No Annual Fee Credit Card scheme is best suited for those who use credit cards rarely. It helps to cut down on the unnecessary cost incurred due to Annual or Monthly Charges, even when the card is not used.  But the standard cards are bound to be much cheaper in interest rates than the No Annual Fee Credit Card.

In general, in order to obtain a deal on a No Annual Fee Credit Card from any Credit Lender, a good credit rating is a must.  The reason being the market for No Annual Fee Credit Card is contested by very few Credit Lenders, who have it in them to reserve the No Annual Fee Credit Card scheme, to a select few individuals who have a highly reputable Credit scores. A credit rating in the upper echelons of 600s and 700s is required, to be offered a No Annual Fee Credit Card.

In choosing a Credit Card, one must consider the annual rates if he or she is a very frugal user of the credit card. Else a cheaper interest rate should be the best choice.