Fee-free credit card with no annual fee

What is a free credit card?

A free credit card is a credit card that has no annual fee or fixed costs associated with owning it. In other words, you pay nothing to keep the card in your wallet, and you can use it for as long as you like without worrying about an annual fee. Free credit cards are especially beneficial for those who pay their full balance every month, want flexibility, and value access to perks such as cashback or insurance.

When evaluating a credit card, it’s important to look beyond just the annual fee. Even though many cards are marketed as “free,” there may still be fees for cash withdrawals, foreign exchange markups, or interest charges if you don’t pay your full statement balance on time.

On Kortio, you can easily see all the fees associated with each credit card. We provide a clear overview of interest rates, foreign exchange fees, ATM withdrawal charges, and other costs. This way, you avoid unpleasant surprises and can make an informed decision based on what actually benefits you.

Benefits included with free credit cards

Even though you don’t pay anything to have the card, it can still include a range of benefits, provided you use it the right way.

Card issuers don’t just make money from interest and fees; they also earn revenue when you use your card at different merchants. That’s why they incentivize usage by offering rewards and perks in return.

The most common benefits include:

• Travel and cancellation insurance included – This type of insurance usually requires that at least 50% of the travel costs are paid with the credit card.
• Discounts on specific product categories or purchases from selected retailers
• Fuel discounts when filling up your tank – The discount may be tied to a specific fuel chain or be more general.
• Cashback on purchases of goods and services – You receive a percentage of what you spend back through a cashback program.
• Airline points – Some credit cards are linked to loyalty programs from SAS or Norwegian, allowing you to earn points that can be used for flights with the respective airline.

The list of benefits is not exhaustive. In practice, only imagination (and economics) limits what additional perks a credit card may offer.

Your usage determines how much your credit card costs you

How much a credit card actually costs you depends largely on how you use it. If you pay your full balance by the due date every month, you avoid interest entirely and can, in practice, use the card for free, especially if it also has no annual fee. If you also choose e-invoicing instead of paper invoices, you avoid unnecessary invoice fees as well.

On the other hand, if you use the card for cash withdrawals at ATMs or to transfer money to your own bank account, costs can quickly become high, as fees are significant and interest often starts accruing from day one. Similarly, frequent use abroad can make the card more expensive if the foreign exchange markup is high.

How to avoid extra costs

If you want to pay as little as possible for using a credit card, beyond the cost of goods and services, this is what you should do:

1. Choose a card with low or no fees
   Many credit cards, for example, have no fees for cash withdrawals and offer low foreign exchange fees.
2. Pay the full credit card balance
   Avoid splitting up repayments. Pay the full amount you owe every time you receive a statement to avoid interest charges.
3. Pay your credit card bill on time
   Don’t delay payment. This helps you avoid both interest and late payment fees.
4. Choose e-invoice instead of paper billing
   Many issuers charge for sending paper invoices by mail, while e-invoices are usually free.
5. Watch out for fees abroad
   Check foreign exchange markups and fees for international usage. Some cards offer no or low fees when used abroad.

Who is a free credit card suitable for?

We would argue that a free credit card is suitable for most people. If you rarely or never travel long distances, there’s little reason to pay an annual fee for a credit card that offers access to airport lounges you’ll never use.

We would even argue that those who rarely or never shop on credit can still benefit from a free credit card. You can use it as a buffer for unexpected expenses. For example, if your glasses break, a credit card can help you pay for a new pair almost immediately, even if payday is still far away.

Of course, having a dedicated emergency savings account is a better option than relying on a credit card. However, since it takes time to build up savings equivalent to two to three months’ salary (as experts recommend), a credit card can serve as a temporary solution in the meantime.