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Compare no annual fee credit cards

No annual fee credit cards

Compare credit cards that don't charge an annual fee. Find the best 0% balance transfer credit cards and rewards cards with no fee for you, that offer the cheapest rates or the best benefits.
No annual fee credit cards
Compare deals on no-fee credit cards, tailored for you
Last updated
January 31, 2023
51 results found, sorted by popularity.
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Uswitch Limited is a credit broker, not a lender, for consumer credit.
Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.

What is a no fee credit card?

If you're looking for a credit card that doesn’t charge you to own it or to transfer balances, then you could consider a fee-free credit card.

Credit cards with no fees are common in many cases, for example 0% purchase cards almost never charge a fee for owning them or using them - but there are two big exceptions.

If you're looking for a card with added perks - for example a rewards card, air miles card, or a travel credit card - then you might well find an annual fee attached to it.

Secondly, if you're looking to make a balance transfer or money transfer then you'll likely find cards that charge a fee for doing this.

The good news is that there a zero fee rewards cards available if you know where to look, while 0% balance transfer cards with no fee are also available.

They generally offer shorter 0% periods or slightly less generous rewards than their fee-charging versions - but if you're transferring a smaller balance or only using the card occasionally they might work out as much better value.

Number of balance transfers in August[1]
702,000

Watch: What will a credit card cost me?

How do no annual fee credit cards work?

A fee-free credit card is very simple – which is why they're very popular. When you apply for the card there's no charge, and if you pay your credit balance off each month you will not be charged any interest either

They could be the best credit card for you if you want a straightforward, low-cost credit card that you don’t have to worry about, or you need one to keep tucked away for emergencies and big purchases.

A zero fee credit card is cheap and simple and might be the best option if you want to keep your costs down.

What you need to be aware of

Even though no annual fee credit cards don’t charge you an annual fee, you will still pay costs if you go over your credit limit or don’t pay off at least your minimum monthly amount.

In the vast majority of cases there are also fees levied for using the card to take out cash, or make "cash like" transactions such as buying shares, as well as for using overseas.

Most will charge you an interest rate on the outstanding balance on your card, although this depends on the type of credit card you choose.

No-annual fee doesn't mean the card is entirely free to use - so make sure you keep up with payments."

Benefits and disadvantages of no annual fee credit cards

Benefits
Simple and easy to use and there are no ongoing costs if you pay the balance off in full every month.
Rewards, perks or cashback without having to work out whether the rewards outweigh the cost.
Disadvantages
Don't usually offer the great rewards packages that come with cards that charge an annual fee.
Cards with no fee can have higher interest rates, costing you more if you do not clear your balance in full each month.

Who would suit a no fee credit card?

A zero fee credit card would best suit someone who wants a simple credit card, would like to keep their costs down, or who uses their credit card only occasionally.

A no annual fee credit card might not suit someone who often has a high amount of outstanding debt on their card. That's because no annual fee credit cards often charge higher interest rates.

How to find the best no fee credit cards

You can use our interactive comparison tool at the top of this page to find the best no free credit card that suits your needs.

You can filter the search criteria based on Popularity, Longest balance transfer period, Lowest APR or Longest Purchase Period.

You can also use our card-finder tool to get results tailored to you, letting you know which cards you are most likely to be accepted for.

How do I apply?

Use our comparison tool to find the best zero fee credit card that suits you best, and then click Apply.

Some credit card providers offer a free credit card eligibility check before you make a formal application.

This allows you to see whether you are likely to be approved for the card without the application appearing on your credit reference file.

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The main types of no-fee credit cards

No fee balance transfer cards

When you’re considering a 0% fee credit card, it would be worth looking at credit cards that allow you to transfer your balance from your current credit card to another, without paying a fee.

There are many credit card companies that offer this option. As a result, you’re able to shift your debt, with no fee.

As long as you make the minimum payments, you’re on route to clearing your credit card debt, without the hefty interest you might have been paying before.

Rewards credit cards with no annual fee

Typically, a no-annual fee card is a simple no-nonsense credit card that just does exactly what it says on the tin, if you want a card simply to make credit purchases with this is the card for you.

However, there are better credit card rewards attached to cards that do charge an annual fee, this is the trade-off of having a cheaper card.

But that doesn't mean you have to pay to own a rewards card - many supermarket no annual fee credit cards still offer retail point schemes that can help you save on your grocery shopping, for example.

The main types of no-fee credit cards
No fee balance transfer cards

When you’re considering a 0% fee credit card, it would be worth looking at credit cards that allow you to transfer your balance from your current credit card to another, without paying a fee.

There are many credit card companies that offer this option. As a result, you’re able to shift your debt, with no fee.

As long as you make the minimum payments, you’re on route to clearing your credit card debt, without the hefty interest you might have been paying before.

Rewards credit cards with no annual fee

Typically, a no-annual fee card is a simple no-nonsense credit card that just does exactly what it says on the tin, if you want a card simply to make credit purchases with this is the card for you.

However, there are better credit card rewards attached to cards that do charge an annual fee, this is the trade-off of having a cheaper card.

But that doesn't mean you have to pay to own a rewards card - many supermarket no annual fee credit cards still offer retail point schemes that can help you save on your grocery shopping, for example.

Will I get the best interest rates with a no-annual fee credit card?

The interest rates for a standard credit card with no annual fee are likely as good as those with a fee.

This is also true for 0% purchase cards.

However, when it comes to rewards cards, you're likely to see better offers if you pay a fee.

When it comes to balance transfer cards, you're likely to see longer 0% interest periods when you pay a fee.

With or without an annual fee, getting the best interest rates depends on your credit score.

A credit card for those with bad credit can charge ongoing interest as high as 35% whereas with good credit can typically be found around 20%.

Your credit score matters more than the fee for ongoing interest charges."

No annual fee credit card FAQs

What is the true cost of the balance transfer fee?

Most credit card providers charge a balance transfer fee of around 3% when you move your debt from one card to another. This varies between cards and providers.

As the fee is worked out as a percentage, the cost of the transfer fee will rise with the amount you transfer.

For example

  • You transfer £1,000. The transfer fee is 3%.

  • It'll cost you £30 to transfer your balance.

  • You transfer £2,000. The transfer fee is 3%.

  • It'll cost you £60 to transfer your balance.

But do not let the fee put you off. Even with the fee, you’re still likely to be paying less overall compared to your existing credit card.

Some credit cards will offer a discount on the initial balance transfer fee provided you meet their terms and conditions. This usually includes paying off your balance on time each month.

What is APR?

APR stands for "annual percentage rate" - it's the interest rate charged on money borrowed on you credit card.

It's typically stated as a yearly interest rate and includes any fees and costs associated with the card.

So if you borrow £100 at 20% APR you'll pay £20 interest on that loan over a year.

In most cases you can avoid paying interest by paying off your credit card balance in full by the due date of every billing cycle.

Is interest free credit really interest free?

Yes, but that doesn't mean you'll pay nothing to borrow.

First, there may well be a fee attached to a credit card balance transfer or money transfer.

Secondly, if you don't clear your debt withing the 0% period you'll be charged interest on any money remaining on the account at the end of it.

Do balance transfers hurt your credit score?

No. The act of transferring a balance to a new credit card in and of itself does no damage to your credit score.

However, there are two things that might negatively affect your credit worthiness about the process if you're not careful.

Firstly, applying for a new credit card is always recorded on your credit history. That means applying for a lot of cards in a short space of time can make other lenders nervous about offering you a product as well.

Card finder and eligibility checker tools don't show up to other lenders on your credit score, however, so it's wise to use one before applying to limit the number of applications you'll have to make.

Secondly, lenders look at something called your "total available credit" before making a decision. This is worked out by adding up all your credit card and overdraft limits.

A new card adds to this total, but unless you've already got a large number of cards with high credit limits - for example equal to your annual salary - it probably won't be a problem.

What does 'most popular and ‘popularity’ mean?

When we use the term ‘most popular or ‘popularity’ on Uswitch in reference to credit cards, these cards are ranked by the number of clicks they have received on the site in the past 48 hours.

The most clicked on cards are at the top, with the least at the bottom. This reflects how popular they are with visitors to Uswitch.com. Consequently, this is a good table to look at if you’re interested in seeing which cards most people think are worth getting.

Does Uswitch compare all the credit cards on the market?

We compare credit over 100 credit cards from all of the major banks and credit card providers.

However, we do not compare all the credit cards that are available in the UK.

This is because some credit card providers have offers that are only available exclusively through their own website or branch, or through other comparison websites - in the same way some credit cards are exclusively available through Uswitch.

There are also many credit cards that are only available to people in member organisations and clubs.

Credit card guides

Find out more about how credit cards work with our in-depth guides
How many credit cards can you have?
How many credit cards can you have?
How to use a credit card
How to use a credit card
What are the differences between credit and debit card?
What are the differences between credit and debit card?

About the author

James Andrews
James has spent the past 20 years writing about and editing personal finance articles and guides in the UK. His driving mission has been to help people make better decisions with their money.

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