Credit Card Mix

United States is probably the only country in the world where the majority of credit cards get issued to the consumers for free. By our definition, a free credit card is a credit card with no annual fees, no transaction fees and, perhaps, free balance transfer. (We decided to include “free balance transfer option” into our definition of a free credit card because in many cases it may be the sole reason to start applying for new credit cards.)

Annual Fee Free Credit Cards

If one browses the Credit Card Catalog maintained by creditcardmix.com he will see credit card profiles formatted in tables for easy visual comparison. At the bottom of every table there will be a short summary of main features for a given credit card. One of these features that a free credit card must have is no annual fee. If the column with the header Annual Fee contains None* - this credit card is an annual fee free credit card.

Transaction Fee Free Credit Cards

Some of us might be wondering how credit card companies make their money. Besides charging interest, late fees, annual/maintenance fees, etc. credit card companies make money off every transaction. A small amount will be charged every time one swipes his card in a card reader. Fortunately for the consumers this fee is paid by the sellers and it is a transparent process for us. Therefore the credit card is free for our use.

However, if one is traveling abroad and uses his card outside the country some transaction fees will be applied for currency conversion operations. Cash advance charges is another way one may end up paying his credit card company for its services. However these are not the essential credit card services and therefore for a credit card to be considered free, we find it sufficient if one is not charged any transaction fees at the times of regular purchases. Otherwise it is not a transaction fee free credit card and should not be considered a free credit card by the definition.

Free Balance Transfer Credit Cards

From time to time banks change their conditions for balance transfer operations. If your reason for applying for a new credit card is to move the balance from the old high interest card to a new low APR credit card, then you should call the credit card issuer’s customer service and ask about their current requirements for balance transfers. Even if the new card charges you a small percentage of the amount transferred to your new account, and therefore this will not be a free credit card, you will still save your money on the difference of interest rates of your old and new cards. So, this card still can be considered a free credit card or even a credit card that makes you money.

Follow the link to find more information on what makes credit cards free.