With the big hoopla nowadays encouraging people to switch over to low interest bearing credit cards or reward cards people are increasingly paying annual fees for the privilege of being able to use credit. This was not always the case and it does not have to be. In fact, financial experts suggest that everyone should own one form of reward card and one no annual fee credit card.

No annual fee credit cards used to be the norm. However, with low interest bearing credit cards and reward cards being such a big hit, credit companies have also taken a slight hit in their bottom line; which is why they introduced annual fees. For certain individuals and in some conditions owning a low interest or rewards card with an annual fee makes complete sense, but for others there is no good reason why you should have to pay simply so that you can use your credit card.

If you are conscientious about paying off your balances at the end of every month then a no annual fee credit card is your best bet. Since you do not need the advantage of a lower interest rate there is no reason for you to have to spend money every year for a lower interest that you will rarely if every use. Should your situation change and you suddenly find yourself carrying a balance every month they switching to a low interest card with an annual fee is very easy - but there is no need to do so until you have need of it. After all, when used wisely you can come out a credit winner.

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