Credit cards with outrageous annual fees and mile-high interest rates are slowly declining in popularity, as more people realize the benefits behind no annual fee credit cards. Why pay to spend with a card when the card issuer already wins from your weekend splurge at Nordstrom's?

This isn’t to say that all credit cards charging yearly rates are a waste of time—plenty offer special perks and bonuses to their cardholders. However, there’s a lot of useful information you may wish to know about no annual fee credit cards.

No-Annual-Fee Must Know’s:

• Find a no-annual-fee card but don’t like the listed APR percentage? Many credit companies can review your credit history and if they like what they see, you can potentially snag a lower rate.

• Many cards allow customers to go over their credit limit or make a late payment without penalty. However, it’s necessary to check the small print, because repeat offenses may hurt you.

• Make sure you read the fine print—your no-fee card may roll over and charge you a fee after extended periods of time.

• Many card issuers charge high penalty rates on late payments, making up for an annual fee that isn’t charged.

• Sometimes no-annual-fee credit cards don’t offer all the special perks like travel miles or insurance that other types of cards do, so it’s best to compare credit cards.

Star Reviews reports that one card in particular, Discover More, offers some great perks in their no annual fee credit card reviews. Discover More offers cardholders a great APR rate, travel accident insurance and versatile cash back bonuses.

There are positive signs in the credit marketplace, which is a great sign that individuals are recognizing the need to spend in moderation. About 40% of all credit card holders have a balance of less than $1,000. Also, about 70% of consumers haven’t had an account or drawn out loan that was older than 90 days. For those of you who can foresee yourself falling into financial traps, it’s necessary to take precaution.