No Fee Credit Cards threw challenges to the credit card service providers in Canada over the last few years. These cards are considered to be the very basic cards out there. The key point about these no fee card providers is that they understand the public demand for less fee or no fees associated with their credit accounts.
In the beginning, they didn’t provide the extra features as the regular card providers do such as the rewards or cash back offers. But at present, most of them are providing those options
Canadian people usually apply for no fee credit cards when they wish to use a credit card for the first time. They check out the functionalities and cash backs though a little is offered by the no fee cards. The case back amount is approximately 1% in most cases and it’s safe to not choose the services that offer less than that. Card providers who apply fees are consistently trying to increase the benefits offered by their services to compete with these no-fee options.
You can identify good credit cards by the benefits you get against your usage. The higher the benefits, the greater your chances to avoid the burdens put by the annual fees. If you still choose a no-fee card, make sure that it comes with rewards close to hard cash.
Rewards Credit Card vs No Annual Fee Credit Cards
Rewards generated in points are not always good options because some companies overstate the value of these points. Some airlines also make their great offers only for the people who spend a large amount of money. Before you go for a credit card with no annual fees, you should definitely check some factors related to their services. For example, you should check the ease in their redemption process, how they provide supports to their customers, how customers rate them, etc.
You can keep two credit cards at the same time. One of them can be with annual fees and the additional card with no fees. The benefit you will get from these is that you can enjoy both basic and premium services at the same time with these two credit cards. However, no fee card is a great match for the students and the housewives who don’t work outside.