Everyday purchases
You can use the card for everyday spending, such as the weekly food shop, clothes, and fuel
No annual fee cards
Compare our best credit cards with no annual fee
MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident.
What is a no annual fee credit card?
A credit card with no annual fee is a type of card that lets you use to pay for goods and services without having to pay a fixed monthly or annual fee.
As such, no fee credit cards can be a good way of keeping your borrowing costs down and get you all the benefits of a credit card without paying a charge when you’re not using it.
If you take the time to compare and shop around, you should be able to find a fee-free credit card that offers a 0% interest period on purchases too.
How does a no annual fee credit card work?
Make purchases: Use your fee-free credit card to make purchases like any other credit card. The difference is you won’t be paying a charge for owning the card
Pay off your balance: This is vital. If you don’t pay off your balance in full each month, you’ll be charged your credit card provider’s variable interest rate
Be mindful of other fees: If you exceed your credit limit or make a late payment, you’ll be charged. So be sure to check when payments are due each month
Reap the rewards: As long you pay off your balance in full each month, you won’t pay interest. And because you’re not paying fees either, that means significant savings
What can I use a no annual fee credit card for?
You can use a no annual fee credit card for the following:
-
-
Emergency expenses
Use it as a backup for unexpected situations like car repairs and medical costs
-
Transfer an existing balance
Move debt from one card to another to save money on interest for a set time period
How to choose the best no fee credit card
-
Use our comparison tool
Tell us a few details. And we’ll track down our pick of the best free credit cards, tailored to your needs
-
Compare APR
No annual fee credit cards often feature higher APRs. So make sure you pay close attention to interest rates you’ll be charged
-
Check for other charges
Keep a close look out for charges for late or missed payments, or exceeding your credit limit. You’ll find details in your card’s terms and conditions
-
Look for low introductory rates
Some cards offer 0% or a low rate for a set period. This can be another handy way of keeping your borrowing costs down
How much does a no annual fee credit card cost?
A no annual fee credit card costs nothing in terms of an annual fee, meaning you won't be charged a yearly fee to keep the card open.
However, you might still incur other fees, such as:
Late payment fees
Balance transfer fees
Interest charges if you don't pay your balance in full each month
Will base rate cuts make credit cards cheaper?
In August 2025, the Bank of England cut the base rate from 4.25% to 4%.
While credit card interest rates aren't directly tied to the base rate, they often track it to some extent. A lower base rate can encourage lenders to reduce the interest rates they charge on credit cards, making borrowing more affordable.
You may therefore see interest start to come down for no annual fee cards in the coming months, particularly if more rate cuts are announced.
However, it is still worth noting that interest rates, and therefore borrowing costs, are still high compared to recent times, with the base rate being as low as 0.1% just 3 years ago.
What are the pros and cons of no annual fee credit card?
There’s a lot to be said for a card with no annual fee. But there’s some potential pitfalls too.
-
Pros
No fees means you can keep borrowing costs down
It’s a good back-up card for emergencies or occasional use
Some cards have 0% introductory periods too
-
Cons
Credit cards with no annual fee sometimes feature higher interest rates
Customer rewards are likely to be less generous
An extra card could tempt you to take on more debt
With a pre-approved credit card, the deal you see is what you get
Our Eligibility Checker shows you the credit cards you're most likely to be accepted for, protecting your credit by showing you only the cards that are right for you.
-
Accurate results
We’ll ask you a set of questions to rate your chance of aprroval out of a score of 10 for each card
-
Apply with confidence
You’ll be shown your eligibility before you apply, so you know if you have a high chance of acceptance
-
Guaranteed rates
You’ll see which cards you’re most likely to get and what the APR will be so you won’t have any nasty surprises down the line
Am I eligible for a no annual fee credit card?
To be eligible for a no annual fee credit card in the UK, you’ll need to meet the following criteria:
Aged 18 years old or older
Hold a UK bank account
Be a UK resident
Have a regular income
Your credit score and financial history also play a factor in whether or not you'll be eligible for an interest free card.
Can I get a no fee credit card with bad credit?
You may be able to. But if you’ve got a bad credit score, we’d recommend you target credit building cards, some of which also feature a no annual fee.
As long as you pay on time, you’ll build your credit rating. So in future you should qualify for better rates and borrowing terms on credit cards.
Want rewards, cashback and free experiences? We've got you....
-
Earn up to £20^ every time you buy
We’ll reward you every time you make a purchase. Exchange your earnings for a gift card for Amazon.co.uk
^ , Sainsbury’s & more -
Free experiences
A years worth of free experiences across the UK. From London Zoo and Go Ape, to Hussle Swimming and English Heritage, there’s an adventure for everybody. Worth £180
^ . -
Cashback
Whether you're buying clothing, homewares or takeaways, earn up to 10%
^ cashback from brands like Just Eat, eBay & Argos. -
Refer a Friend
You and your friends each get up to £20 when they join the Club and make a qualifying purchase. Win-Win!
What do I need to consider before getting a no annual fee credit card?
Getting a credit card with no annual fee can be a good idea. They’re handy as back-up cards and can be a cost-effective way of borrowing. But before you commit, it’s a good idea to consider:
-
Are you sure you won’t overspend?
Having a new line of credit can tempt people to run up debts. Only take on more borrowing if you trust yourself not to overspend
-
Will you be able to make your monthly repayments?
If not, you could end up paying the higher borrowing rates that are often a feature of no annual fee credit cards. If you’re planning to spend regularly, a card that charges a fee but comes with lower APR might be a better bet
-
Would you prefer a card with rewards?
No annual fee cards sometimes offer air miles and reward points, but they’re not as enticing as the incentives that come with cards that charge an annual or monthly fee
Will my credit card always have no annual fees?
Credit cards with no annual fee remain fee-free for as long as you hold the card. But remember: no annual fee doesn’t mean no fees at all. You can still rack up charges if you miss payments, exceed your overdraft or make a late payment.
How much will my credit limit be on a no annual fee card?
The credit limit on a no annual fee card can vary significantly depending on your individual circumstances and the specific card issuer. On average, the credit limit for our customers who want to use a credit card for spending receive a limit of£1000
Is a no annual fee credit card right for me?
A no annual fee credit card might be a good choice if you want a simple credit card with low costs, and occasional use, while avoiding high interest rates, or if you prefer a back-up card.
You want a simple-to-use credit card
You'd like to keep your credit card costs down and avoid high interest rates
You’re committed to repaying what you owe in full each month
You only use the card occasionally
However, if you frequently carry balances, want premium perks like travel insurance, or expect to earn substantial rewards, a card with an annual fee might offer better value.
What are the alternatives to a no annual fee credit card?
If you're unsure whether or not a no annual fee credit card is right for you, consider the following:
-
Purchase credit cards
Purchase credit cards with low-interest rates are ideal for new purchases, helping you pay interest at a reduced rate compared to standard cards
-
Credit-builder cards
Credit-builder cards are designed to allow you to improve your credit score and offer lower credit limits and a higher chance of acceptance.
-
Rewards credit cards
Earn points or cash back on purchases, providing value through perks rather than low interest rates; best for those who pay in full monthly.
Compare credit cards with MoneySupermarket
If you feel that a no annual fee credit card could be right for you, the next step is to use the MoneySuperMarket Eligibility Checker to see what cards are available – and which are most likely to approve you
-
Tell us about yourself
We'll ask you a handful of simple questions about you and your financial circumstances, and what you need from a credit card
-
We browse the market
We'll sift through dozens of credit card offers from across the market, and show you the cards we think will suit you best
-
Pick the card you want
You'll be shown a range of credit cards, which you'll be able to sort according to APR, features and your chances of being approved
Our expert says…
The majority of credit cards don’t come with an annual fee. Those that do have fees tend to be offered to premium customers and come with perks or benefits. With a no annual fee credit card, the only charges on your credit card bill will be interest on the money you borrow (which you can avoid by repaying your bill in full each month) and any fees for late payments or exceeding your credit limit.
Kara Gammell Personal Finance & Insurance Expert
Trusted Service Awards Winners
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Can I still get rewards with a no annual fee card?
Fee-free credit cards that offer rewards exist and are typically on offer from supermarkets and other high-street retailers. But the rewards are generally much less generous than those you get with cards that charge a fee. If you’re in the market for free airmiles because you travel a lot, for example, you may want to prioritise a card that lets you accrue airmiles for your spending.
Can I get cashback with a no annual fee card?
Cards that offer cashback generally come with a fee to pay. If cashback is an important selling point for you, we’d suggest you look at cards that levy a charge instead and weigh up if it’s worth you paying the annual fee in return for the cashback incentive.
What benefits do no annual fee Mastercard credit cards offer?
No annual fee Mastercard credit cards provide several benefits, such as cashback and rewards points for purchases without the extra yearly cost. They often feature competitive transaction fees, making them an affordable choice for everyday spending. Some options may even offer travel perks like airport lounge access.
How can rewards credit cards with no annual fee help maximise savings?
Rewards credit cards with no annual fee allow you to earn points, cashback, or vouchers on every purchase without incurring additional costs. These rewards can be redeemed for airline tickets, hotel stays, or shopping discounts, providing significant savings while enjoying everyday purchases.
Are balance transfer credit cards available with no annual fee?
Yes, some balance transfer credit cards come with no annual fee, allowing you to consolidate existing credit card debt without extra costs. These cards often have a lower introductory APR and minimal transaction fees, making them a cost-effective way to manage and pay down debt.
Do no annual fee rewards credit cards offer airline benefits?
Many no annual fee rewards credit cards provide airline-related perks like bonus points for airline purchases and discounts on airfare. Although they lack annual fees, some may also offer premium benefits such as airport lounge access, enhancing the travel experience without added costs.
Credit card comparison
If you’re applying for a credit card, you might be able to find a better deal if you look through offers from different providers before taking one out. With MoneySuperMarket you’ll be able to search through multiple credit cards and compare them by a range of factors, including their interest rates and any benefits and rewards they come with.
All you need to do is answer a few questions about yourself and your financial situation, and our Eligibility Checker will show your chances of being accepted for different credit cards. This won’t affect your credit score, so you can run a check without any worries.
Once you know which card you want, you can normally apply by phone, online, or in person if the provider has a high street branch. However, when you do apply, the provider will usually run a hard credit check – which will show up on your credit report – to confirm whether they’ll give you the card. If you’re accepted they’ll tell you your credit limit and interest rate, and soon you’ll be ready to start using your credit card.
How we work
MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.
Take control of your credit score by checking and improving it for free with Credit Score
Never overpay again with Energy Monitor, our energy monitoring service
Over 50 ways to Get Money Calm
So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.
But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?
We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.
Reviewed on 12 Dec 2025 by
Based on the median guaranteed credit limit of users searching for credit cards to have interest free spending through MoneySuperMarket in November 2025, by the highest eligibility rating returned.
Based on 1 visit per month – average ticket value £15.30 (Oct 24)
T&Cs and restrictions apply, see here for more information
T&Cs and restrictions apply, see here for more information
T&Cs apply, click here for more information