It’s no surprise that rewards credit cards, like the St. George Amplify credit card, are appealing to many consumers. After all, you essentially get something back just for spending money you planned to spend anyway. Or at least that’s how it’s supposed to work. In reality, rewards cards aren’t always the best option around.

Sometimes you’re better off going with a simple, no frills credit card over a rewards card. Let’s look at some of the benefits of these no frills options so you can make the best choice for your next credit card.

Why Consider a No Frills Credit Card?

Here are three benefits of no frills credit cards:

1. You can save money on fees. — No frills credit cards like the Suncorp Standard Visa often feature low (or no) annual fees. It’s a direct and easy way to save money.
2. You might avoid reward-induced over-spending. — Ideally a rewards card rewards you for spending money you planned to spend anyway. But in reality, some consumers use those rewards to justify over-spending. If you feel you might be tempted to spend more just to earn more rewards points, a no frills credit card might be a great option for you. You save money and keep spending under control.

3. You can often get lower interest rates to finance purchases. — Another benefit of no frills credit cards is that they frequently have low interest rates. That can make a no frills card your best bet if you plan to use it to finance a large purchase.

Rewards Card or No Frills Credit Card?

Here are a few things to consider when making that choice:

1. How will you use the card? If you’ll pay off purchases in full each month and can therefore deal with a higher interest rate, a rewards card might suit you. If you want to finance over time, go for a no frills card.
2. Will you actually use the rewards points? Some consumers build up point balances but never redeem them. If you’re likely to be one of them, a rewards card can be a waste of money.
3. Are you a compulsive spender? If you already spend more than you should (or more than you want to), a rewards card might encourage that behaviour. If you’re better at controlling your finances, a rewards card might be fine.

Remember that it isn’t always an either-or situation. There’s nothing to say you can only have one credit card. It’s very possible that a no frills credit card will be a good fit solely because you already have a rewards card you love. What kind of card will your next credit card be?