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[READER QUESTION] Are No Annual Fee Credit Cards Good to Have?

Credit cards with no annual fee are always good to keep in your wallet or at home in order to increase your total available credit and average age of accounts. As we mentioned in a previous post, your credit score is based on five aspects: payment history, amounts owed, length of credit history, new credit and types of credit used. The longer you hold a card, then the better the average age of all accounts will be higher. In other words, having credit cards with no annual fee will play a significant part in building your credit score.

In the past, annual fee credit cards would generally mean better rewards, better travel and medical insurance. In reality, many credit cards with no annual fee today give comparable benefits and rewards. As long as you’re paying your bills every month, then keeping these cards around will keep your credit score in line.

Three no-annual fee credit cards I would recommend having are the MBNA Smart Cash Platinum Card, American Express SimplyCash Card and the RBC Cash Back MasterCard as they off the best cash back rewards in comparison to other Canadian credit cards.

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Pointshogger aims to provide analysis and updates on earning loyalty reward points and maximizing the value of your points. We hope to inspire our readers to experience the joy of travel and make the most out of what they've already got!

  • Ottawa | Vancouver
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