You’ve looked at a couple of different types of credit cards, and the idea of a no annual fee credit card looks pretty good. But would a no fee credit card like the Commonwealth Bank Low Fee credit card really be right for you? There are a few things you should consider before making a final decision.

You’ll want to look at how you plan to use your new credit card before you can figure out if a no annual fee card is your best option. Here are two big things you should think about before you start applying for new credit cards.

Cost-Savings Considerations

This is where your general card usage and spending habits come in. Are you a financer (paying off purchases over time, and therefore paying interest) or are you someone who uses credit cards for routine expenses but then pays off the balance each month?

If you’re in that financing group, looking for a credit card with no annual fee probably shouldn’t be your primary concern. Where you’re really going to lose money is on interest payments. So you should consider a low interest credit card. If it happens to also be a no annual fee card, consider it a bonus.

On the other hand, if you’re rarely subjected to paying interest because you pay off your balance in full each statement period, a no annual fee card might be perfect for you. In that case you’d not only avoid interest, but avoid an annual fee as well. It’s an all-around money-saving option!

The Role Rewards Programmes Play

You should also think about rewards programmes before deciding if a no annual fee credit card is right for you. There are some credit cards that are both rewards cards and no annual fee cards — like the American Express Gold Ascent credit card. The question then becomes “how does this no fee rewards card compare with other rewards credit cards?”

If you could earn more rewards with a different rewards card, it might be worth considering. If those extra reward points would have a higher dollar value than what you’d save by using the no fee card, then the no annual fee offer wouldn’t make sense. Remember, everything is relative.

Those are two big considerations when figuring out if a no annual fee credit card is right for you. But don’t forget — no fee cards aren’t all created equal. For example, you’ll also need to determine if a first year no fee offer is really worth it, or if you’re only interested in a credit card that never charges an annual fee. Look at all of these factors before filling out your next credit card application.