Are there credit cards that don’t charge annual fee? If so, please suggest the top 3 credit cards that I can consider. Thank you.
There are many cards without any annual fee. However, you must understand that banks or financial companies are there for business and they have to make money for providing services. Hence the charge may be in other forms such as joining fee. There could be cases where you may not pay any annual fee but you may not other advantages (for example, credit point accumulation).
Instead of worrying about annual fee alone, you should evaluate a credit card on various other parameters such as joining fee, effective APR, penalty for late payment, grace period for payment, discount and credit points, ease of use, ATM withdrawal charges etc. and then decide to go for the card which gives you maximum benefit.
There are plenty of Credit Cards with zero annual fees. Here are some of them.
• Kotak Royal Signature Credit Card - This Credit Card has some stellar features like fuel surcharge waiver, access to premium airport lounges, and priority assistance. The card comes in two variants – paid and free. You can pick either one based on your budget and spending needs. Annual Fee is nil for the first year and Rs. 999 for the second year. APR – 37.2% per annum
• Jet Airways IndusInd Bank Voyage Visa Card – This one comes with a unique reward structure and you earn JPMiles on every travel-related spend. This card also has you covered with exciting offers on lifestyle, shopping and dining spends even when you are not travelling. Annual Fee is nil for the first year and Rs. 2,000 for the second year. APR – 46% per annum
• HSBC Visa Platinum Card – This is a lifetime free Credit Card. It’s packed with deals offered on shopping, dining and travel along with a host of other benefits and features. Annual Fee will be nil. APR – 39.6% per annum.
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What is Apr as it is mentioned that in HSBC credit card APR is 38%. Is it good or bad thing?
Unlike other financial products, a credit card’s interest rates are calculated on a yearly basis. The term APR (Annual Percentage Rate) indicates the interest you pay towards the transaction through your credit card. In simple words, it’s a fee that you pay to your credit card issuer for the extension of the credit period. The credit card APR is calculated based on various factors and payable to the credit card issuer.
Most credit cards come with terms and conditions that will help you understand the following types of credit card APRs:
This is the most common type of APR where the interest is calculated based on the purchases we make. Whether for food, clothing, entertainment, or any other reason, your interest will be subject to a common interest rate.
Cash Advance APR
When you use your credit card to withdraw money from an ATM, the Cash Advance APR will be applicable on the total amount you have withdrawn. This type of APR is calculated on a daily basis after the end of the grace period, if the credit card issuer is offering any grace period. However, compared to Purchase APR and Cash Advance APR, the interest rate for Penalty APR is higher.
When you are unable to make the minimum payment for over two months, most credit card issuers will charge you a Penalty APR that is higher than the other types of interest rates.
If you are transferring your card balance or switching to another card issuer, your credit card account will be subject to Balance Transfer APR.
Usually APR can be 24% to 40%. You should choose cards with lower APR if you pay the minimum balance on your credit card bill often. It is best to pay the total bill so that you don’t need to pay interest for your credit card purchases.
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