Guides · Fees & pricing
No-fee vs. low-fee credit cards
— what you really pay for.
“No annual fee” sounds like the safest choice. In reality, fee-free cards often give up travel perks, protections and rewards that can be worth far more than the annual fee — if you actually use them.
This page is educational only. It explains how to think about fees and value. It does not tell you which card to choose.
What “no annual fee” really means
A no-fee card removes one visible cost, but the business model is the same: the issuer still earns on interest, interchange, FX margins and other fees. Something has to give — usually perks and flexibility.
- Fewer or no travel perks like lounges and hotel benefits.
- More limited insurance & protections, or none at all.
- Lower earn rates on cashback, points or miles.
- Sometimes higher FX fees or ATM charges abroad.
For a pure everyday card where you always pay in full and rarely travel, a no-fee product can still be perfectly sensible.
Related hubs on Choose.Creditcard
- • Cashback Cards hub – for % back vs. fees.
- • Insurance & Protections hub – what you may lose on no-fee cards.
- • Card Types & Profiles hub – where no-fee products fit.
When a low-fee card is actually cheaper
A card with a €50–€150 annual fee can be effectively cheaper than a free card if the perks line up with how you spend and travel. The key is to calculate value in your own currency and patterns, not in marketing examples.
1. Travel benefits
- Lounge visits that would otherwise be paid per use.
- Included travel insurance vs. separate policies.
- Hotel status, late checkout, breakfast, etc.
2. FX & ATM fees
- Lower FX margin on every purchase abroad.
- Free or cheaper ATM withdrawals.
- Better treatment of dynamic currency conversion (DCC).
3. Rewards & points
- Higher earn rates on travel, groceries or fuel.
- Transfer partners and airline/hotel loyalty programs.
- Intro bonuses, if used responsibly.
The moment the realistic annual value of perks exceeds the fee, a low-fee card has beaten a no-fee card — even if the no-fee card “feels safer”.
Checklist before choosing
Use this as a simple framework before applying for any card:
- Estimate how many trips or lounge visits you realistically take per year.
- Check FX fees and ATM costs on your most common destinations.
- Look at earn rates on categories where you already spend money.
- Compare total value vs. annual fee over a 12-month period.
- Read the small print on insurance, exclusions and caps.
If you almost never travel or use perks, a simple no-fee card plus a separate travel solution can be more transparent.
Where to explore next
This guide is a starting point. For more structured content on fees and card types:
Nothing here is financial advice. Always compare multiple products and consider independent guidance if you are unsure.