When it comes to credit card rewards and fees, you can have your cake and eat it too with just a bit of searching.
Most of the competitive and popular credit card reward programs also come with higher interest rates and annual fees that either balance out the rewards or end up costing you more than the benefits are worth.
In fact, the closest thing to a low rate card with rewards is usually gold or platinum options like the St George Gold Low Rate card or Citibank’s Clear Platinum.
But as far as annual fees go, there are quite a few cards that have low or no fees and still offer reward points for every dollar spent.
The American Express Qantas Discovery card, for example, has no annual fee and earns cardholders one point per $1 with no points capping.
With the average annual fee for frequent flyer credit cards working out to be around $200, this card offers people a huge saving on fees.
American Express also has a fee-free Membership Rewards option in the form of the Ascent Gold card, making them one of the champions of no annual fee reward cards in Australia.
Low Fee Reward Card Options
While very few other issuers offer even one rewards card with no annual fee for life, this does not mean people who want to save on fees and earn rewards need to apply to Amex.
More and more low fee reward cards are becoming readily available, offering competitive extras and points potential along with a more affordable cost.
The Virgin Flyer, for example, has a $99 annual fee, while the award-winning Commonwealth Bank Awards card has a standard fee of $89 that is discounted to $59 for qualifying customers. Other notable low fee reward cards include:
- The American Express David Jones card, $99
- ANZ Rewards card, $89
- Bankwest More card, $89
- Citibank’s Rewards card, $89
- Citibank BP MasterCard, $89
- NAB’s Velocity or Qantas credit cards, $65
Reading the terms and conditions for these low fee reward cards is a must for anyone who wants to get value out of their points.
Points capping and expiries could mean the rewards program never pays off, so focusing on this area of the fine print will help you narrow down your credit card selection even further when comparing cards that have low fees and rewards.
At the end of the day, the cost of any credit card comes down to how it is used. Some cardholders may find that an annual fee worth hundreds of dollars is a small price to pay for their rewards, while others could struggle with a fee of $99.
But comparing different cards, looking at the fine print and factoring in your card habits will help you find the most affordable and rewarding card on the market.