Compare No Annual Fee Credit Cards With Rewards

There are a handful of credit cards in Australia that offer both rewards points and no annual fees. This gives you a way to save on the annual fee costs that most reward cards have – and get value from points (which most $0 annual fee cards don't offer).

Plus, if you pay your statement in full each month, you'll avoid interest charges and effectively get rewards for free.

Types of no annual fee credit cards with rewards

• Promotional $0 annual fee rewards cards

Some rewards and frequent flyer credit cards offer a waived or reduced annual fee during the first year. You typically have to pay the full annual fee from the second year onward. This makes it important to look for details or disclaimers on any promotions so that you're aware of any ongoing costs that apply after the first 12 months.

• No annual fee rewards program cards

These cards usually offer points as part of a credit card rewards program such as the American Express Membership Rewards. These programs offer rewards that usually include travel, merchandise, cash and point transfers to frequent flyer programs.

• No annual fee frequent flyer credit cards

Frequent flyer credit cards offer great rewards for regular globetrotters. These are similar to rewards cards in the way they earn points per dollar spent, except that you can only redeem your points within the frequent flyer program of that specific airline. A few frequent flyer credit cards charge no annual fees, including the Qantas American Express Discovery Card.

Pros and cons of no annual fee credit cards with rewards

How to decide of a no annual fee credit card with rewards is right for you

These cards offer you value in two key ways, but some people could get more value from a rewards card that has more perks and charges an annual fee. For others, an ongoing no annual fee card with lower overall costs could be worth it. So here are 3 key things to think about before you apply.

• How much value you'll get from the rewards

Earning points is only really worth it if you can use them, so it's worth looking at what types of rewards are available and how many points you need to redeem them. Then, you can estimate how long it would take you to get enough points based on what you'll charge to the card.

• How long the $0 annual fee lasts

Is it an ongoing $0 annual fee or just waived in the first year? While you can earn rewards with either option, it's worth thinking about whether you'd prefer to save on upfront costs or on an ongoing basis. Then you can weigh this against the potential value of the rewards offered by different cards.

• What other features you want

Even when they offer rewards, credit cards with ongoing $0 annual fees typically offer fewer extras than cards that charge an annual fee. So if you know you want airport lounge passes, travel credit or other premium perks, it's worth looking at a wider range of rewards cards and then weighing up the costs.

What else to consider

Beyond points and no annual fee, make sure you weigh up the following features when you're comparing these cards.

• Purchase rate. If you carry a balance on your credit card, a high purchase rate can result in exorbitant interest fees over time. With 0% purchase rate promotional offers, the standard purchase rate will kick in once your promotional period is over.
• Interest-free days. Most credit cards offer a set number of interest-free days for purchases during each statement period when you pay the total balance listed on each statement. On a no annual fee credit card with rewards, this gives you another way to save on credit card costs as you earn points.
• Transactions that earn points. Most purchases are considered eligible transactions for earning rewards on your card, with the common exceptions of cash advances, balance transfers, gambling transactions, government payments (sometimes even public transport), bank fees and bill payments. You can ask the card provider or check the product disclosure statement for specific definition and exclusions.
• Points caps. Some rewards credit cards limit the amount of points you can earn each statement cycle or year. Make sure you consider this cap before choosing a card, so that you can find one that offers the most convenient limits based on your spending habits.
• Additional cardholders. Adding your partner or a family member to your account as an additional cardholder can help you earn reward points faster as their spending will also earn points per $1. Just make sure you check if there's an additional cardholder fee.
• Other fees. Other fees, such as ATM fees, late payment charges and over-limit fees, may be applied to your account. International transaction fees will also apply to overseas transactions and internet purchases made with foreign merchants.

If you’re keen to earn reward points on your everyday spending but don’t want to pay high fees, it’s worth considering a credit card that offers rewards without an annual fee. As always, we recommend that you research all available options and compare cards in relation to your personal needs and spending habits so you can choose the one that’s right for you.

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Written by

Amy Bradney-George

Editor

Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio

Amy's expertise

Amy has written 565 Finder guides across topics including:

• Credit cards
• Frequent flyer
• Credit score
• BNPL
• Money management
• Sustainability