No Annual Fee Credit cards of December 2024

Credit cards with no annual fee can be used to pay for rent, utilities, and insurance. They're also instrumental if you want to start making purchases to build your credit history. You save money by not paying an annual fee on your credit card. You also enjoy cashback as you make eligible purchases from the grocery stores without incurring an annual membership fee, and thus you can earn maximum rewards.

What is a credit card with no-annual-fee?

A credit card with no annual fee is an excellent choice if you're looking for an affordable way to make your payments. Many no-annual-fee cards offer a premier rewards program and other perks like cashback or travel credits, which can be valuable if you use them often enough or spend a lot on everyday expenses each month. Some also offer additional savings options through their partner programs. The best part is that you earn more with a no-annual-fee credit card, and its benefits outweigh the costs associated with keeping it open. As a result, you can save on costs and avoid paying annual fees even if you haven't made any significant transactions with the card.

How to choose the right no-annual-fee credit card for you

There are several credit card options available.

Credit cards with no annual fees make it simple to earn more, regardless of expenditure. Because there is no annual fee, the lender will not charge you for using your credit card every year. Thus, depending on the credit card, you might save between ₱300 and ₱12,000 in annual fees. However, in many circumstances, credit cards with no annual fees provide better long-term value than those without. Therefore, to enjoy these perks, you must first select the best credit card with no annual fee. Here's how to choose the best credit card with no annual fees:

• How much money do you have? If this is your principal credit card, you'll want something more flexible than an all-purpose, one-size-fits-all option. If possible, you'll also want something to help you build up your credit history quickly.

• Is it the right card for you? Check to see if the card is right for you before applying. Evaluate the rates and fees the card will impose when you earn cash rewards. Compare these two and check if you will be able to pay off your card bill as it will help your credit health in the long run.

• What kind of rewards program do you want? Consider whether you want a credit card with cashback or one with bonus points. They are ideal for those just getting started in life and with little or no debt because of their low fees. They also make sense if you have a low credit score and have little money saved. Also, look at each card's other benefits: low introductory interest rates, rewards programs that give members points towards free travel or merchandise, sign-up bonuses that can be used toward other purchases online or in-store, and more. These perks may not seem like much at first glance, but when combined, they can really make a difference in the cashback or rewards you receive.

• How long will it take to redeem rewards? You also need to consider whether the cashback or rewards are worth it? Sometimes, you may spend so much money making purchases and not earn substantial rewards. Therefore, consider whether the effort of earning the rewards matches the results. You should also check whether they match your requirements. You can earn more points by spending money or using your credit card. Some reward schemes provide cashback or airline miles, while others offer points you can redeem for gift cards or travel benefits. As a result, earning redeemable points may take longer than getting cashback every time you make a purchase.

• How frequently will you use the card? Consider how frequently you'll use the card before determining which one is ideal. Some people only use their credit cards when they get paid every two weeks or once a month, while others have their cards on file all year and use them whenever they need, like when traveling. Then you can select a no-fee card to access your statement credit easily. As a result, you can track your progress as you earn cash rewards and make purchases. You can also see if your preferred credit card allows splitting eligible purchases into equal monthly payments.

• Will it make it easier for you to do international transactions? You should also evaluate whether the no-annual-fee card you select will facilitate international transactions, such as a balance transfer with a foreign financial institution. You'll be able to earn cashback by paying less in foreign transaction fees when you use your card to pay for hotels and rental cars. You will also receive cashback on travel and entertainment purchases made with your card, with no account opening or sign-ups needed.

• Is the customer service available? When you apply for a credit card through a bank or other financial institution, they want to ensure that everything is in order so they can provide you with the right amount of money. They'll want to know exactly how much money is available to pay back what you owe on your loan and what kind of interest rate you qualify for. Not all credit card companies are created equal, and if you're looking for a lender that will give you the best chance of getting approved for a credit card, then it's essential that they have great customer service.

  Therefore, as you are researching for the best credit card with no annual fee, ensure that they have good reviews of their customer support. It will also come in handy that you can talk with someone directly about any questions or concerns that arise during the process. It will also be stressful when you require immediate assistance from a credit card issuer and cannot contact customer service.

How to maximize your credit card with no-annual-fee

If you're looking for a strategy to optimize your credit card without paying an annual fee, here are some suggestions:

• Pay your balance in full every month. Unless you have an emergency requiring more money than usual, make sure that you have paid off at least the minimum amount due on each card by the end of each billing cycle. Set up automatic payments from your bank account and make sure you pay off the entire debt each month. It will also help you build your credit history, making it easier to get approved for new credit cards in the future. If you cannot pay when your billing cycle ends, some cards allow you to divide purchases into equal monthly payments.

• Take use of other perks. If the card comes with a sign-up bonus, take advantage of it. If you have the option of enjoying a reduced foreign transaction fee, utilize your zero annual fee card while making any international transactions.

• Use it like cash. The easiest way to use a no-annual-fee credit card is to use it like cash, especially for large transactions. Using plastic cash for your most expensive eligible purchases will be more beneficial than making little everyday transactions. However, while using it, ensure the charges do not exceed the incentives. As a result, it may be preferable to use your credit card for large purchases because it will help offset many smaller ones.

• Do not overspend. It is vital to follow a budget and pay off any debt as soon as possible. Don't spend money if you don't have it. It will help you avoid paying high interest rates on your credit card payments. Also, set up alerts on your credit card statement to know when you are about to go over your limit. It will alert you so you can plan for large purchases and avoid going into debt. Additionally, before making credit card purchases, always check the balance in your bank account. If there is not enough money in the account, do not spend it. If there is enough money in the account and it is still within the limit, make the purchase; otherwise, wait until there is enough money left. Finally, do not forget to budget for unexpected costs, such as a flat tire, an emergency room visit, or a sick child's doctor visit. These expenses can sneak up on you when you are not expecting them and cause you to go over your budget.

• Avoid late fees or penalties for missed payments. Credit cards are intended to assist you in avoiding late fees and penalties for missed payments. You can also use these cards to make regular full payments on your balance. The problem is that many people fail to pay their credit card bills on time, resulting in late fees or penalties. The good news is that there are several ways to avoid these fees and maintain the good standing of your credit card. Also, since the bill is always available online, you can check it wherever you want. If you notice anything out of the ordinary, contact your provider right away so that they can correct any errors before sending out the next statement.

• Use it more for international transactions
  Credit cards are an effective way to facilitate international transactions. You can avoid the fees connected with cash and traveler's checks by using a credit card. Because banks normally reward you for using your card, this might be an easy way to accumulate miles or points that can be used for travel. Credit cards also allow you to make purchases in foreign countries even if your bank does not officially support them, such as Alipay. In other words, if a company or store only accepts payment in euros but does not have an arrangement with your bank, you can still use your credit card to pay them.

Types of credit cards with no-annual-fee rewards

There are two categories of no-annual-fee credit cards: limited and no annual fee for life.

Limited annual fee waiver

It is when the annual fee on a credit card is waived for a set period, such as six months or up to five years, and the regular annual fee then takes effect. Other banks may also impose a minimum annual spending requirement before waiving the annual fee. For example, they may stipulate that you must make ₱5,000 in combined eligible purchases to qualify for an annual fee waiver.

Here are the best credit cards with limited annual fee waivers.

BPI Blue Mastercard

You earn reward points when you use your BPI credit card to make a purchase. You can then redeem cash for airline miles, shopping credits, and gift vouchers.

When you make any purchases, you will receive one reward point for every ₱35 spent, and you can extend your payment terms up to 36 months. You can also benefit from one of the lowest forex conversion rates, at 1.85%. Furthermore, when you travel, you can use your card to book your flights and get free insurance up to ₱2 million.

Mercury Drug Citi Card

You earn 1 point for every ₱200 spent anywhere with this no annual fee for life card. You also get 5x points on up to ₱320,000 Mercury Drug purchases per month. If you spend less than ₱320,000, you can still get 1x point. You can also earn 3x points for all self-care activities, such as health, beauty, and wellness. You also get a ₱10,000 ambulance service within Metro Manila once a year and 3x points on foreign currency purchases.

RCBC Bankard Mango Mastercard

You receive non-expiring rewards points for every transaction, which you can exchange for Mango gift cards at a 0% interest rate. You can also take advantage of international travel benefits such as travel plus lite insurance, purchase protection, and access to the Skyview airport lounge.

You can also easily keep track of all your credit card transactions while paying your bills. You can also combine your credit card bills into one card if the total amount is greater than ₱5,000. The intro balance transfer fee is 0.89% per month for up to 36 months of installment terms.

HSBC Red Mastercard

If you have a minimum annual income of ₱200,000, you can take advantage of its unique benefits, such as interest-free purchasing and free purchase protection. You can earn up to 4x rewards points for every ₱20 spent when you shop online, eat out, or travel globally. You can then redeem benefits for GCash and air miles using the HSBC credit card and have your first year's annual fee waived.

No-annual-fee for life

The annual fee for these cards is waived indefinitely. When you apply for the card, the annual fee is either waived automatically or offered as a welcome gift. You must meet no specific requirements before enjoying a waived annual fee.

Here are some credit cards with no annual fee for the rest of your life.

AUB Classic Mastercard

An AUB credit card allows you to set a payment schedule for your bill. You set a date when you know you will have funds to make your payment. These can be weekly or biweekly. You can also make interest-free purchases.

Additionally, you enjoy complimentary access to airport lounges such as Pagss Premium, Skyview, and Pacific Club when you travel. When it comes time to pay, you get one reward point for every ₱50 you spend. You also receive reward points and Mabuhay miles, with each ₱425 spent on purchases earning you one mile.

Citi Simplicity+ Card

To be eligible for the Citi Simplicity Card, you must earn at least ₱180,000 annually. When you pay your minimum credit limit by the due date, you will receive a 10% interest charge refund. If you exceed your credit limit while using this secured MasterCard, Citi will not charge you late or over-limit fees with this Citi credit card.

EastWest Platinum Mastercard

With this platinum credit card, every ₱40 spent earns you one reward point. When you use your EastWest Platinum Mastercard to buy a flight, you will get a 1.70% foreign currency conversion fee, free Comprehensive Travel Accident, and Inconvenience Insurance worth up to ₱20 million. Then you can use the global concierge service at any time of day. You can also access over 1,300 airport lounges with free Priority Pass Membership. However, you must spend more than ₱100,000 in accumulated spending from travel ticket purchases and international transactions to qualify for free Priority Pass Membership.

Pros and cons of using a credit card with no-annual-fee

Before applying for a card to improve your credit worthiness or to get all the cash rewards after making in-person or online purchases, you should also consider the advantages and disadvantages of possessing this card.

Pros

• Allows you to earn more while paying less. A credit card annual fee might lead you to pay more regardless of how frequently you have used the card. With a free annual fee card, it doesn't matter if you use the card on just grocery store purchases or to have food delivered to you through any eligible delivery service. You will redeem rewards without the worry that all the cashback earned might be used to pay off your annual costs.

• Allows you to earn rewards for using your credit card. If you use your credit card monthly, you will earn points toward purchasing or paying. You can use your points to pay your utility bills or your monthly cellular telephone bill. You can also redeem these points for drugstore purchases or direct deposit into one of your savings accounts.

• Allows you to earn cashback. The card allows you to receive cashback on purchases made using the card— sometimes even almost more than the amount spent.

Cons

• Has fewer benefits. The card may not provide better benefits than cards with annual fees.

• Has more fees. The card may be subjected to additional fees, such as late or transaction fees.

• Has no additional features. The card may not have any appealing added features. For example, sign-up bonuses may be low compared to other offers linked with annual fee credit cards.

The main requirements for getting a credit card with no-annual-fee

You must first apply for a credit card before any provider may offer you their services. Furthermore, most financial institutions may demand you to meet some standard requirements before approving the application, particularly if it is for a supplemental card.

You must meet the following requirements:

• You must be a Filipino citizen or resident with a valid billing address corresponding to your permanent and primary residences for the last three months.

• You must be of legal age.

• You must have valid identification documents, such as a government-issued ID card, NSO-issued birth certificate, SSS UMID card, or passport, are required.

• You must have a registered business operating profitably for at least one year if you are self-employed.

• You must have been in practice for at least one year as a licensed professional.

How to apply for a credit card with no-annual-fee

After you have all your documents ready and you meet the required conditions, follow these steps to apply for a no-annual-fee credit card:

1. Visit the lender's website

2. Select Products.

3. Click on Credit Cards.

4. Click on Apply Now.

5. Enter all of your information when prompted.

6. Click on Submit.

7. Wait for approval.

How to repay a no-annual-fee credit card debt?

After your credit card has been accepted and your billing cycle has ended, you can repay your credit card debt online as follows:

1. Visit the lender's website.

2. Choose Credit Cards.

3. Select Payments.

4. Select the no-annual-fee card you want to pay for and enter all transaction details.

5. Click the Submit button.

6. The lender will send a confirmation to you once you complete the transaction.

Legal regulation of no-annual-fee credit cards in the Philippines

Credit card regulation in the Philippines is critical because it ensures that the credit card industry can grow and thrive. When you use a credit card, you give the firm that issued your credit card access to your personal information. If the issuer fails to safeguard this information and treat it with care, anyone with access to it can use it for fraud. As a result, the government has established regulations imposed by the Bangko Sentral ng Pilipinas (BSP) for credit card regulation and has set standards for this.

BSP also aids in the reduction of fraud in businesses. BSP has established guidelines requiring them to keep closer track of their clients' transactions and to alert them immediately if funds are lost or stolen from their accounts. The BSP also compels them to provide additional protection for certain high-risk charges.

The BSP also enforces the Philippine Credit Card Industry Regulation Law. The Act applies to all credit card issuers, acquirers, and transactions.

• Credit card issuers must carry out know-your-client processes and use due diligence to ensure applicants can honor their credit commitments before issuing credit cards.

• Credit card issuers must inform all cardholders about finance charges like late payment fees.

• Credit card issuers must properly clarify and provide examples of how all fees are calculated.

• Credit card issuers must provide cardholders up to 30 calendar days from the date of the statement to report any error or inconsistency.

The actual cost of no-annual-fee credit cards

While the no annual charge credit card can help you save much money on annual fee, other factors can make repaying your credit card loan a nightmare.

There are various factors to consider while looking for a credit card with no annual fee:

• Consider whether the card has additional fees, such as foreign transaction fees or minimum payments. You should avoid these costs because they can quickly build up and cause complications if not paid on time.

• Consider the monthly interest rate on the balance you carry. If you have a high-interest rate on your purchases, you may spend more money to cover these fees rather than earning more incentives.

• Consider whether there are any penalties for paying late or missing a payment. In most cases, if you do not have an automatic payment system, you may miss one or two payments, which could cause you to pay more if the penalties are enormous.

Conclusion

With no-annual-fee credit cards, the points and perks accumulate over time, saving you money and relieving some of the burden of your monthly expenditures. You do not want to start accruing interest on purchases you might make yearly. Also, there are other aspects to consider when determining which no annual charge credit card is best for you. Whichever choice you select, make sure you can afford to pay the additional fees that the credit card imposes.