Is a credit card with no annual fee worth it?

Brazilian consumers are increasingly aware of financial benefits, and the credit card with no annual fee appears as one of the main choices for those looking for practicality without extra costs.

But is it really worth it in everyday life? The answer requires a careful analysis of advantages, limitations, and usage profiles.

In this article, you will understand:

• What characterizes a card with no annual fee?
• The advantages compared to traditional cards
• Situations where it may not be the best choice
• Practical examples of use
• Brazilian market statistics and trends in 2025
• A comparative table with relevant points

What is a no-annual-fee credit card?

The concept is simple: it's a financial product that offers basic credit services but doesn't charge an annual maintenance fee.

This model gained momentum in Brazil in 2017, with the entry of fintechs that challenged traditional banks, democratizing access to credit.

Today, large institutions also offer versions without annual fees to maintain competitiveness.

The Central Bank highlighted in its Banking Economy Report (2024) that the share of these cards already exceeds 40% of the plastics issued in the country, showing a clear change in consumer behavior.

Furthermore, the digital transformation accelerated by the pandemic has driven this movement.

More and more people are looking for practical solutions through apps, and the no-annual-fee card fits perfectly into this scenario, as it eliminates the need for physical branches and bureaucratic processes.

We can think of this model as the evolution of streaming over pay TV. Previously, consumers paid dearly for comprehensive packages; today, they prefer to pay only for what they consume.

The same is true in the financial sector: why pay fixed fees when the competition already offers free alternatives?

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Why do so many people choose a credit card with no annual fee?

Avoiding an annual charge that varies between R$ 100 and R$ 600 seems obvious, but there are other points that make this option attractive.

These include transparency, the simplicity of digital hiring, and, in many cases, benefits programs tied to partnerships with technology, transportation, and retail companies.

Consider a consumer who spends an average of R$2,000 per month on their card. By avoiding the R$300 annual fee on a regular card, they're already saving significantly annually, which can be used for investments, travel, or even emergencies.

It's like replacing a constantly dripping faucet with a new one: the expense may seem small in isolation, but at the end of the year it represents a significant difference in your budget.

Another reason is the sense of control. Many people abandoned traditional cards because they no longer wanted to deal with unexpected charges.

A card with no annual fee, because it's transparent, eliminates this hassle and generates more trust. It's a great choice for those who value financial predictability.

Furthermore, for young adults and recent graduates, the appeal goes beyond economics: it represents inclusion.

By offering a card with no fixed cost, institutions allow consumers to start their financial life without fear of getting into debt just to “keep up” with fees.

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Advantages of the card with no annual fee

1. Direct economy

The first advantage is clear: there's no annual fee. For those who use the card only for everyday purchases, this savings makes a difference.

This saved amount can be used for other purposes, such as building an emergency fund or even starting fixed-income investments, which are increasingly accessible from R$ 30.

In the long run, small savings become big achievements.

Furthermore, many consumers report that these savings act as a psychological incentive to better organize their finances.

Knowing that the bank isn't charging you for something you don't always use creates a feeling of relief and freedom.

2. Ease of hiring

Most fintechs offer digital 100% applications, without bureaucracy, with fast analysis and reasonable initial limits.

This convenience is especially useful for those who live in smaller cities, where the presence of large banks is limited.

The card arrives by mail, and management is done via the app, without queues or the need for face-to-face contact.

It's also a plus for those who need to get things done quickly. Imagine a self-employed person who needs a card to manage their expenses.

With just a few clicks, it resolves this issue without wasting hours on traditional processes.

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3. Extra benefits

Many cards offer cashback on purchases, discounts on digital services, and access to virtual wallets, which extends their value beyond simply waiving fees.

Cashback, in particular, has gained traction in Brazil. Receiving part of your spending back, even if it's 1% or 2%, may seem small, but in the monthly total, it already represents a significant boost to your budget.

Additionally, discounts on platforms like streaming and delivery bring no-annual-fee cards closer to the modern lifestyle.

They not only offer credit, but become tools connected to the consumer's daily life.

What about the disadvantages?

One credit card with no annual fee may not offer robust points or airline miles programs.

For those who travel frequently or accumulate a lot of expenses, premium cards — even with an annual fee — can generate higher returns on travel and exclusive benefits.

Another point to note is the initial limit, which tends to be more conservative on cards with no annual fee.

For entrepreneurs or consumers who move large amounts of money, this can become a limitation.

There are also cases where benefits such as travel insurance, concierge and VIP lounges may justify paying the annual fee.

For this audience, the lack of these features on free cards can turn into frustration.

However, the common mistake is to believe that only expensive cards offer real value.

Often, a card with no annual fee, combined with smart financial planning, meets all the needs of an average consumer without compromising their income.

Market statistics and trends

According to data from Brazilian Association of Credit Card and Services Companies (ABECS), in 2024, card payments generated more than R$1.8 trillion in Brazil.

Among them, models without annuity experienced accelerated growth, with an increase of 25% in transaction volume compared to the previous year.

This data shows not only the strength of digitalization, but also how attentive Brazilians are to reducing banking costs.

The trend is that, by 2026, the share of these cards will exceed the 50% mark in the national market.

This growth also reveals how consumers' mindsets are changing. Instead of associating prestige with high prices, they now value practical and affordable solutions.

It's a clear portrayal of how technology is breaking paradigms in the relationship between banks and customers.

Comparison table

This table illustrates how the decision depends less on cost and more on usage profile. If the focus is international travel, paying an annual fee may be worthwhile.

But, for those just looking for practicality in their day-to-day lives, the free version continues to be the most advantageous.

It also shows how the market segments its offerings. While traditional banks still focus on premium packages, fintechs are gaining ground precisely because of their simplicity and transparency.

When is it best to opt for a card with no annual fee?

This type of card makes sense for most consumers who are just looking for convenience and financial control.

Example 1: a university student who does not yet have a high income finds in this product the chance to build a credit history without compromising their budget.

Example 2: A professional who prefers direct cashback on supermarket purchases or ride-hailing apps sees greater value in daily savings rather than accumulating travel points.

However, those who travel abroad frequently or have large monthly expenses may find more value in paid cards.

The secret is to calculate how much you actually earn in benefits versus how much you spend on fees.

Think of the card as a tool: just as no one would buy a professional drill just to hang a picture at home, it doesn't make sense to pay a lot for benefits that are rarely used.

How to choose a good card with no annual fee

There are dozens of options on the market, but some criteria help you make the right decision:

• Check if the card offers extra benefits beyond the fee waiver.
• Evaluate the issuing institution's reputation with organizations such as Reclame Aqui and the Central Bank.
• Please note the limit increase policy, especially if you intend to use it as your primary card.

Another important point is to analyze whether the institution offers quality service. Often, fast and effective support in emergency situations is worth more than a sophisticated points program.

It is also important to compare experiences shared by other users.

Comments on forums and social media help identify recurring or unique issues that don't appear in official advertising.

When making this decision, many consumers are tempted by exaggerated promises. Therefore, always consult information on reliable websites, such as Exame – Credit Cards, before making your final decision.

Question you need to ask yourself

If you pay an annual fee today, do the benefits you receive actually outweigh the amount invested? This consideration is essential to understanding whether it's worth switching to a credit card with no annual fee.

Often, the answer lies in the details. Compare your bills and see how much you actually used for miles, insurance, or exclusive access. In many cases, the annual fee isn't justified considering the actual use of the card.

Conclusion

O credit card with no annual fee It's a smart option for those who want to simplify their financial lives, cut costs and still enjoy modern digital benefits.

However, it is not a substitute for premium cards when it comes to accumulating miles, accessing VIP lounges, or securing robust travel insurance.

The choice should be based on each person's consumption profile and financial strategy.

After all, in the world of personal finance, the best card isn't the one that offers the most promises, but the one that generates real value in your daily life.

Frequently Asked Questions (FAQ)

1. Does every card with no annual fee have fewer benefits?
Not necessarily. Many offer cashback, discounts, and integration with digital wallets, but they generally don't compete with premium cards in rewards programs.

2. Can I have more than one card without an annual fee?
Yes, and it can be advantageous, as long as the consumer maintains control over spending and avoids debt.

3. Does the limit increase over time?
In general, yes. Fintechs evaluate responsible usage and may gradually release higher limits.

4. Should people who travel a lot avoid cards with no annual fee?
It depends on your profile. Frequent travelers may benefit more from premium cards, but for occasional trips, cards with no annual fees can still be a good fit.

5. Is it worth switching from a paid card to a free one?
If the benefits received don't offset the annual fee, yes. Migrating can generate significant savings without major losses in your daily life.