You decided that you definitely want to apply for a no annual fee credit card. You know you’ll be approved. So the last things to worry about are choosing the specific no annual fee card and deciding how you’re going to use it in order to get the most from it. We’ve put together a few tips and suggestions that can help you do just that.

Here are three things you can do that will help you get the most out of using a no annual fee credit card.

1. Choose a credit card offering no annual fees for life.

Some no annual fee credit cards only charge no annual fee during your first year. It’s just an introductory offer to lure you in, and then you’ll be charged an annual fee each year after that. To help you maximise your savings, look for a no annual fee card that never charges you an annual fee — like the HSBC credit card.

When you choose a credit card with a no annual fee for the life of your account, you don’t just save money up front. You save money every year you continue to be a cardholder. What’s not to love about that?

2. Pay off your balance in full every month.

Remember that the annual fee alone is only one way you can save money. You could get away with paying little or nothing to the credit card company if you also avoid paying interest on purchases made with your no annual fee card.

Pay off your balance in full, don’t take out cash advances, and don’t start a balance transfer. Cash advances and balance transfers generally aren’t covered by interest free days, so it’s best to avoid them altogether if you want to avoid paying interest. If you pay off balances in full each month, you probably won’t be subjected to interest charges on purchases at all either. Verify interest free days for each specific card before you apply.

3. Minimise other fees.

The primary reason to get a no annual fee credit card is that you’re interested in saving money. We’ve already looked at how you can save money on annual fees and interest using these cards, but you still might be faced with other fees. If you really want to get the most from a no annual fee card, you need to avoid other fees as well. Keep in mind that if a credit card company isn’t making money with an annual fee, you could very well be getting charged elsewhere to make up for that.

For example, if it’s a no annual fee rewards card, make sure it doesn’t have a separate rewards programme annual fee (some do). Also, pay your bill on time every month to avoid late charges. We already mentioned avoiding balance transfers and cash advances due to the interest charged, but they can also come with fees — a double whammy of balance transfer interest and a fee that’s a percentage of the transaction for some balance transfer cards.

As with any type of credit card, it’s up to you to make sure you get the most out of it. No annual fee credit cards can be real money-saving tools. You just have to look at all of the factors involved, and adjust your card usage and spending habits. When you do, you can take advantage of the perks without any of the usual setbacks.