St.George No Annual Fee Credit Card

• No annual fee requirement for the duration of card ownership.
• Experience up to 55 days interest-free on purchases.
• Benefit from a low minimum credit limit.

Having a no-fee credit card issued by a major bank is a bit like flying economy on a world-class airline: you get the same efficiency, security and safety features as those experienced by the passengers at the pointy end who are paying through the nose for identical protection and expertise plus a few short-lived trimmings that can be more easily dispensed with. Having the St.George No Annual Fee Credit Card is more like flying for free.

No annual fee, ever

St.George’s tagline for this card says it all: 'a basic credit card with no annual card fee to pay, ever'. You can even have up to three additional cardholders — who must be older than 16 — on your account for free.

If you neither want nor need fancy extras like rewards points and ‘complimentary’ insurance (where at least a part of the cost is usually built into the fee), then you may as well have a card with all the standard functionality you’re likely to require but with no annual fee attached.

Interest rates

Interest rates are typical of a card of this type, although cheaper ongoing rates are available with other cards.

• 21.99% p.a. on cash advances (interest accrues from the transaction date)
• 20.99% p.a. ongoing purchase rate

The good news is you don’t need to pay any interest at all if you are smart about how you use your credit card. Stay away from cash advances if you possibly can, because it’s not an astute way to borrow money. To take full advantage of the ongoing interest-free days on purchases (up to 55 days each month), pay off your balance on or before the due date for payment.

One fee you may not be able to avoid

Like many other credit cards, this card levies a fee on foreign transactions. This includes purchases made in a foreign currency and Australian dollar transactions made with a merchant based overseas or whose processing is done overseas.

The 3% charge will be applied if you use your card while travelling internationally. And if you shop online, the chances are you will occasionally incur the 3% fee, although you may not realise that you have made a foreign transaction until you see the charge on your statement.

Functionality and security

This card may have the best budget rating, but there’s nothing cheapskate about its user safety and capability, which compare favourably with its more expensive competitors.

• Visa payWave. The latest secure, contactless technology to get you through the checkout faster for transactions under $100.
• Verified by Visa. A one-time PIN system for additional safety when shopping online
• 24/7 fraud monitoring. Detects suspicious purchases.

Is the St.George No Annual Fee Credit Card worth it?

This is a no-frills card that is easy to get your head around. It’s likely to appeal to the first-timer, especially since the minimum credit limit is a manageable $500 (although higher limits are possible).

There’s no juggling of rewards points or complimentary insurance small print to read. The introductory offer could prove very useful, too, if used properly.

Although the ongoing interest rates are unattractive, they won’t cause any concern if you intend to keep a tight rein on your finances and avoid spending more than you can afford to repay each month.

The St.George No Annual Fee Credit Card is a solid option as a first credit card, one that could prove to be the only one you’ll ever need.