Have you been looking into applying for no annual fee credit cards? Do they appeal to you because the credit card offers make them sound like much more affordable options than other types of credit cards? I mean, after all, how can you beat a no annual fee credit card when others are charging anywhere from $50 to several hundred dollars per month?

Don’t get too excited just because a credit card has no annual fee. While some no annual fee options really are going to help you save money, others might cost you much more than you think.

It’s important to remember that having no annual fee does not mean a credit card is fee-free. There are many other types of fees you could be hit with, and when you add them up you might even be paying more with your new no annual fee credit card. Let’s take a look at some of those other fee types you should look out for.

1. Rewards Programme Fees

If your no annual fee credit card is a rewards card (like the American Express Gold Ascent credit card), it might have its own annual rewards programme fee even if it’s presented as having no annual fee. Why? Because that “no annual fee” claim only applies to the annual account fee — not a fee for access to the rewards programme. Some cards lump these together, and some separate them, only promoting the annual account fee rate. Check those terms carefully. Also keep in mind that frequent flyer cards probably require membership in a frequent flyer programme with an airline, and that might also carry an annual fee.

2. Balance Transfer Fees

If you’re applying for a new credit card specifically to save money on interest with a balance transfer (like with the HSBC credit card), a no annual fee card might be appealing because it looks like it will help you save even more money. It’s very possible that it will. But make sure you know how much it’s going to save you before you apply. You’ll likely have to pay a balance transfer fee which will eat into the annual fee savings at least a little. If getting a no annual fee card also means taking a slightly higher balance transfer rate, you might want to reconsider. You could pay more in interest than you’ll save on that fee.

3. Cash Advance Fees

You’ve probably seen advice before telling you to avoid credit card cash advances. That’s usually due to the higher cash advance rate of most credit cards, where you’ll immediately start paying around 20% interest on the cash advance because they’re not eligible for interest free days. But you might not realise that there is also often a cash advance fee involved. It might be a set dollar amount or a percentage of the cash advance, but it will be charged at the time of the transaction (in addition to any ATM fees). Those can really add up!

4. Late Fees and Other Fees

While hopefully you’ll never pay your credit card bill late, surely you know that late fees will apply if you do. Will those affect all cardholders? No. But it’s still good to be aware if fees are playing a significant roll in the credit card offer you choose. The same goes for other fees such as over-the-limit fees if you exceed your credit limit or currency conversion fees if you use your card while travelling abroad or making international purchases online.

As with anything else when comparing credit card offers, don’t let annual fees drive your decisions alone. Check the terms and conditions thoroughly before applying (or contact the credit card company if you can’t find fee-related information on your own), or you might end up paying much more than you planned.