No Annual Fee Credit Cards

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Best credit cards with no annual fee compared

Editor’s picks: No annual fee credit card details

Capital One SavorOne Cash Rewards Credit Card: Best for dining and entertainment

Why we picked it: This popular Capital One credit card just got a bit of a makeover: Cardholders now earn 3% cash back on dining and entertainment, 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), 3% cash back on popular streaming services and 1% cash back on general purchases.

Pros: There’s a welcome bonus of $200 after you spend only $500 in the first three months of opening your account. That’s more than competitive in the realm of cash back cards’ welcome offers. Plus, it features a 0% intro APR offer on purchases and balance transfers for 15 months (then it’s 17.99% to 27.99% variable).

Cons: The ongoing APR after the welcome period is on the high side. Additionally, although it provides solid earning rates, redemption options are limited with a cash back card. Additionally, a 3% fee applies to amounts transferred within the first 15 months.

Who should apply? This is a great card for foodies, given it offers best-in-class cash back on dining and entertainment for a no annual fee credit card. (Learn more about the best cards for restaurants.)

Who should skip? Moderate spenders who rarely dine out may be better off with a single flat rate credit card that doesn’t require keeping track of bonus categories.

Read our Capital One SavorOne Cash Rewards Credit Card review or jump back to this card’s offer details.

Discover it® Cash Back: Best for rotating cash back categories

Why we picked it: This popular Discover credit card offers a whopping 5% cash back on up to $1,500 in quarterly purchases in various rotating categories throughout the year (enrollment required, then 1%). See Discover’s 2022 Cash Back calendar.

Pros: This card’s cash back match feature at the end of your first year can easily beat out other cash back cards’ sign-up bonuses. For example, while you would only get $200 back from the Capital One Quicksilver after a $500 spend within the first three months of card membership, you could potentially get $600 back the end of your first year with the Discover it Cash Back if you enroll quarterly and max out your 5% rotating category offer ($1,500 max spent each quarter you activate comes to $75 back each quarter (then 1%), $300 at the end of the year, then matched by Discover for a total of $600). Then earn an unlimited 1% on all other purchases.

Cons: If it’s not your idea of fun to chase rotating categories, this isn’t the best choice for you. Not only do you need to keep track of which categories are active, but you have to sign up each quarter to activate the bonus earnings.

Who should apply? Rewards maximizers will welcome the opportunity to earn a large amount of bonus cash back on rotating categories.

Who should skip? If the tedium of having to enroll and keep track of spending categories puts you off, a flat-rate rewards card may be more your speed.

Read our Discover it Cash Back review or jump back to this card’s offer details.

Wells Fargo Active Cash® Card: Best for 2% cash rewards

Why we picked it: This simple, yet flexible rewards card offers an unlimited 2% cash rewards on eligible purchases. It also comes with a $200 cash rewards bonus after spending $1,000 in purchases within the first three months of account opening. Members can enjoy a 0% introductory APR on purchases as well as qualifying balance transfers for 15 months from account opening, then 18.74%, 23.74%, or 28.74% variable APR.

Pros: Rewards are widespread and never expire so long as your account remains in good standing. The card also charges no annual fee. Card perks also include Visa Signature Concierge benefits at select hotel properties around the world and up to $600 in cellphone protection for damaged or stolen equipment as long as you pay your cell phone bill with this card (subject to a $25 deductible).

Cons: Cardholders may be better served if they pair it with a card that features bonus categories in order to maximize reward earning potential. Timeliness is a factor as well, as the intro APR on qualifying balance transfers must be made within the first 120 days as a cardholder to receive the special intro rate. There’s also an intro balance transfer fee of 3% if you transfer the balance within 120 days; up to 5% if you don’t (with a $5 minimum).

Who should apply? If you’re looking for a card that can set the foundation for your rewards-earning journey as well as offer forgiving balance transfer terms, the Wells Fargo Active Cash® Card is a very compelling option.

Who should skip? This is a great way to earn on everyday spending but you may be missing out on a higher rewards rate in certain spending categories, depending on what your biggest monthly expenses happen to be. If you’re ok with a little strategizing if it means earning more rewards, you may find another card to be a better fit.

Read our Wells Fargo Active Cash Card review or jump back to this card’s offer details.

Capital One Quicksilver Cash Rewards Credit Card: Best for new cardholders

Why we picked it: It doesn’t get much simpler than this: Earn unlimited 1.5% cash back on all purchases, no matter where or when you make them. No need to track spending, enroll in bonus categories or deal with complicated cash back redemption. Redeem in any amount, any time.

Pros: The Quicksilver’s unlimited flat cash back rate makes it a great choice for everyday spending, and earning the card’s sign-up bonus should be no trouble. You’ll score $200 after spending just $500 in the first three months.

Cons: The go-to rate after the 15-month 0% intro APR purchase and balance transfer offer ends is high, at 17.99% to 27.99% variable, which means this is not a card you want to carry a balance on. Additionally, a 3% fee applies to amounts transferred within the first 15 months.

Who should apply? We like the Capital One Quicksilver for first-time rewards credit cardholders, given the ease of earning and redeeming cash back.

Who should skip? While the simplicity of this card will appeal to many, anyone hoping to maximize reward earnings should look at one of the many other cards offering much higher earning rates.

Read our Capital One Quicksilver Cash Rewards Credit Card review or jump back to this card’s offer details.

Blue Cash Everyday® Card from American Express: Best for U.S. gas station and U.S. supermarket purchases

Why we picked it: It’s hard to match the Blue Cash Everyday Card’s 3% cash back rate at U.S. supermarkets (on up to $6,000 in purchases per year, then 1%) without paying an annual fee. If you max out this bonus category, you’ll earn close to $180 cash back per year. Plus, you earn 3% cash back at U.S. gas stations (on up to $6,000 in purchases per year, then 1%).

Pros: For no annual fee, you get a card with a welcome offer (Earn up to $250. Earn 20% back, up to $150 in statement credits, on purchases with PayPal merchants. Plus, earn $100 as a statement credit after you spend $2,000. Complete both in the first 6 months of card membership) and an introductory APR on new purchases and balance transfers (0% for the first 15 months, then 17.74% to 28.74% variable).

Cons: If you are willing to pay an ongoing $95 annual fee (after the $0 intro annual fee for the first year) for the Blue Cash Preferred® Card from American Express, it might be a better choice for the larger family or someone with a sizable commute. Also offering great rewards on regular purchases, the Blue Cash Preferred offers 6% cash back at U.S. supermarkets (up to $6,000 annually, then 1%) and 3% cash back at U.S. gas stations. (Learn how to decide between Amex’s Blue Cash cards.)

Who should apply? We love this card for frugal families due to the lack of an annual fee and the competitive bonus categories for everyday expenses.

Who should skip? If a decent chunk of your budget goes towards groceries (say, more than $3,200), the Blue Cash Preferred® Card may be a better choice as you could recoup the ongoing annual fee (after the first year) with your spending.

Read our Blue Cash Everyday Card from American Express review or jump back to this card’s offer details.

Chase Freedom Unlimited®: Best for flat-rate cash back + sign-up bonus

Why we picked it: The Chase Freedom Unlimited combines 1.5% cash back on general purchases with enhanced earnings in select bonus categories. Earn 5% cash back on travel purchased through the Chase portal, and 3% cash back on dining at restaurants and drugstores. You get 1.5% on all other purchases. Also, you can earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year).

Pros: You can also get a 0% intro APR on purchases and balance transfers for 15 months (then it’s 17.99% to 26.74% variable).

Cons: Depending on your spending habits, you could conceivably earn more in the long term with the Citi® Double Cash Card, a no annual fee card that offers 2% cash back on general purchases (1% when you spend; 1% as you pay back those purchases).

Who should apply? The Chase Freedom Unlimited is a solid card for people looking for a solid general-purpose cash back card with a generous sign-up bonus.

Who should skip? If you’re considering a trip abroad, this may not be the card for you. It charges a 3% foreign transaction fee.

Read our Chase Freedom Unlimited review or jump back to this card’s offer details.

Bilt Mastercard: Best for paying rent

Why we picked it: Its perks for renters are unique among credit cards and its travel rewards program and point redemption values are unmatched among no-annual-fee cards.

Pros: Points are worth 1.25 cents each when you redeem for travel through the Bilt portal — 25 percent more value than you’ll get with other no-annual-fee rewards cards. You may get an even higher redemption value if you transfer points to one of the card’s airline or hotel partners (easily the most impressive list we’ve seen on a card with no annual fee).

Cons: You’ll get the best redemption values when you use points for travel, so the card may fall short if you only travel occasionally or don’t plan to rent long term. Despite its high point values, the card may also disappoint some travelers since it lacks perks like lounge access or credits for expedited security screening.

Who should apply? Long-term renters, aspiring homeowners and frequent travelers looking to minimize fees.

Who should skip? Cash back fans, infrequent travelers and people with low monthly rent costs may find a card that offers more redemption flexibility and earns more in everyday categories more rewarding.

Jump back to this card’s offer details.

Capital One VentureOne Rewards Credit Card: Best for occasional travel + intro APR

Why we picked it: Occasional travelers will want to check out the VentureOne card. It comes with a sign-up bonus as well as a simple way to earn rewards: 5 miles per dollar on hotels and rental cars booked through Capital One Travel and 1.25 miles per dollar on all other purchases.

Pros: Cardmembers can earn 20,000 miles (worth up to $200 in travel purchases) after spending $500 in the first three months of account opening. The card also comes with an intro 0% APR offer for 15 months on purchases and balance transfers (17.99% to 27.99% variable rate afterwards).

Cons: The flat rate of 1.25 miles per dollar on purchases isn’t the highest you’ll find for travel cards with no annual fee. Plus, a 3% fee applies to amounts transferred within the first 15 months.

Who should apply? The sign-up bonus and intro APR offer make this a decent choice for the occasional traveler looking for a travel card with no annual fee.

Who should skip? Any traveler looking to maximize their rewards earning potential will want to look at cards that offer at least 1.5 miles per dollar on general purchases or cards that come with higher rewards in popular categories like dining, transit, and gas.

Read our Capital One VentureOne Rewards Credit Card review or jump back to this card’s offer details.

Citi Custom Cash℠ Card: Best for automatically maximizing rewards

Why we picked it: For no annual fee, you can take advantage of a competitive cash back rewards program, earn a lucrative sign-up bonus and enjoy a lengthy 15-month 0% introductory APR on balance transfers and purchases (then variable 17.74% to 27.74%).

Pros: You earn 5% cash back on up to $500 in purchases each billing cycle in your top spending category (then 1%) and 1% cash back on all other purchases. Eligible spending categories include restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs and live entertainment. But perhaps the biggest boon is that there’s no enrollment or tracking required. Your earnings adjust automatically each billing cycle. You can also earn $200 when you spend $1,500 in the first six months of account opening, awarded as ThankYou points, which can be redeemed for cash back.

Cons: The cash back cap on 5% earnings (up to $500 in purchases each billing cycle, then 1%) puts a ceiling on the card’s value. If you do a balance transfer, you’ll pay a 5% balance transfer fee (or $5, whichever is greater), which is on the pricier side. Many cards charge 3% of the transferred balance; some waive the fee.

Who should apply? This no annual fee card fires on a lot of cylinders, so if you’re looking for the combo of cash back, a lucrative sign-up bonus and a promotional APR, consider it a top contender.

Who should skip? Depending on your spending habits, the fact that you only earn a high rewards rate in your top spend category means you may be missing out on big rewards in your second and third top spending categories.

Read our Citi Custom Cash Card review or jump back to this card’s offer details.

Bank of America® Customized Cash Rewards credit card: Best for customized rewards categories

Why we picked it: This Bank of America Customized credit card has an unique feature: Cardholders can choose their big bonus category: Earn 3% cash back on gas, online shopping, dining, travel, drug stores or home improvements or furnishings. You’ll also earn 2% cash back at grocery stores and wholesale clubs (up to $2,500 a quarter on combined 3% and 2% categories, then it’s 1%).

Pros: You can change your customized rewards category each calendar month. The required spend on the sign-up bonus is quite low: Get a $200 online cash rewards bonus after spending $1,000 within the first 90 days of opening your account. This card offers a 0% intro APR on both purchases and balance transfers made in the first 60 days of card membership for 18 billing cycles, then there’s a regular interest rate of 17.74% to 27.74% variable.

Cons: Your bonus rewards are subject to that quarterly $2,500 cap. Plus, if you want to make purchases and earn rewards without having to worry about which card to pull out, you may want to consider another card. There are no annual fee flat-rate cash back cards with 1.5% or even 2% cash back on the market.

Who should apply? This card is a solid option for Bank of America and Merrill customers with at least $20,000 across checking, savings or investment accounts as they can qualify for a 25% to 75% rewards boost through the Bank of America Preferred Rewards program. It’s also an option for people that want a rewards program that can shift alongside their spending.

Who should skip? The earnings cap on bonus rewards means big spenders can earn more elsewhere.

Read our Bank of America Customized Cash Rewards credit card review or jump back to this card’s offer details.

Bank of America® Unlimited Cash Rewards credit card: Best Bank of America card for flat rate cash back

Why we picked it: This new card offers a lucrative sign-up bonus of $200 in online cash rewards after making at least $1,000 in purchases in the first 90 days of account opening. If you’re an existing Bank of America customer with assets in eligible savings, checking or investment accounts, you could benefit from this cash back credit card, which offers 1.5% back on all purchases, and a potential 25% to 75% rewards boost for Preferred Rewards members (actual value of the boost varies, depending on how much you have in your Bank of America accounts).

Pros: In addition to the unlimited 1.5% cash back on eligible purchases, you can earn $200 online cash rewards after making at least $1,000 in purchases in the first 90 days of account opening. Cardholders can also take advantage of a promotional APR (0% intro APR for 18 billing cycles for purchases, and for any balance transfers made in the first 60 days; 17.74% to 27.74% variable APR thereafter) and requires no annual fee.

Cons: You’ll need at least $20,000 across Bank of America and/or Merrill accounts to be eligible for any Preferred Rewards boost. If you carry a balance beyond the introductory 18 billing cycle period and you could end up paying quite a bit in interest, particularly if you fall under the higher APR range.

Who should apply? Existing Bank of America customers with at least $20,000 across savings, checking or investment accounts will see a lot of utility from the rewards boost the bank offers through its Preferred Rewards program.

Read our Bank of America® Unlimited Cash Rewards credit card review or jump back to this card’s offer details.

Petal® 2 “Cash Back, No Fees” Visa® Credit Card: Best for earning rewards + avoiding fees

Why we picked it: With the Petal 2 card, you get an unsecured credit card with no annual fee, foreign transaction fee, late payment fee or penalty APRs. This makes it easier for people with average credit to focus on boosting their credit score and gaining access to improved financial products and services.

Pros: Cardholders immediately earn 1% cash back on every purchase. After making six on-time payments, that rate grows to 1.25% for eligible purchases, followed by 1.5% on all eligible purchases once you make 12 on-time payments. There are even select merchants that offer anywhere from 2% to 10% cash back.

Cons: Limited spending: If you’re saddled with a low $300 credit limit, this card may not be good for much besides credit building. A credit limit that low may not cover emergency expenses. And if your credit utilization ratio exceeds 30%, your credit score will take a hit. That means carrying a balance over $90 ($300 x 0.03 = $90) into your next billing cycle will slow down your credit-building goals.

Who should apply? People with fair-to-good credit who want a chance to earn rewards while building their credit will get a lot of value out of this credit card that comes with no unnecessary fees.

Who should skip? If your credit falls in the good-to-excellent range, you’ll have an easier time qualifying for credit cards with better perks like unlimited 2% cash back on purchases, sign-up bonuses and up to 5% back in select categories.

Read our Petal® 2 “Cash Back, No Fees” Visa® Credit Card review

What is a ‘no annual fee’ credit card?

A no annual fee credit card is a card that doesn’t charge an annual fee. An annual fee on a credit card is a charge made each year. It’s essentially a membership fee. Annual fees are often tacked onto cards that give access to special benefits, like credit-builder cards, rewards cards or luxury options, for example. With the best no annual fee cards, you can take advantage of many of those specialty benefits without the added yearly cost.

Some annual fee cards will waive the annual fee for your first year as a cardholder. But once these charges start occurring on an annual basis to keep your account active, the fees can be daunting. Some cardholders find ways to make up for it through clever spending and earning of rewards, but some annual fee cards can cost $550 or more each year. With the right fit, no annual fee cardholders can take advantage of surprising rewards without that yearly cost.

Pros and cons of no annual fee cards

How to choose a no annual fee credit card

How to make the most of a no annual fee card

A no annual fee card can be a very helpful addition to your wallet when used properly. To do so, keep these tips in mind:

• Pay down existing credit card debt. A credit card that does not charge an annual fee while also offering 0% intro APR on balance transfers is an attractive option for anyone focused on paying off an existing balance. By keeping your spending in check and paying off your balance each month, you can keep your credit utilization low and take advantage of your card’s low ownership cost.
• Pair with a premium card. A no annual fee card used for everyday purchases gives you greater financial flexibility when paired with a premium card with specific rewards categories, Plus, when used responsibly, having multiple cards can be a boon to your credit score.
• Take advantage of credit building features. Many no annual fee cards provide free credit score monitoring and other useful credit building tools for those who are new to credit.

Are credit cards with annual fees ever worth it?

Opting for a no annual fee credit card might seem like the easy choice. Who would pay a yearly fee when you don’t have to? However, there are instances when an annual fee is justified.

Many credit cards that carry an annual fee can pay for themselves as long as the fee is within your budget. Consider an annual fee to be the yearly subscription cost for access to better rewards rates, high-end travel perks and lucrative sign-up bonuses. To determine if the card is truly worth it, estimate your potential rewards earnings, factor in the premium benefits you’ll receive and compare that to the annual price tag. Frequent travelers, business owners and other big spenders will certainly want to do the math before making a decision.

However, those in the beginning stages of owning a credit card will have an easier time learning the basics with a no annual fee card. Individuals looking to establish credit will want to focus on practicing healthy financial habits and devote less of their budget towards an annual fee and the perks that come along with it. For many, the true value of a credit card lies in its convenience and not everyone shares the same interest in accumulating cash back, points and miles or weighing their value against an annual fee. If you prefer straightforwardness and aren’t as interested in building rewards, a no annual fee credit card is the better choice.

How we picked the best no annual fee credit cards

Research methodology: We analyzed 2,744 no annual fee credit cards to identify the best offers currently on the market. The major factors we considered in our analysis include:

• Rates and fees: Annual fees aren’t the only common costs associated with credit cards. We looked at whether the card touted APRs that were reasonable, relative to the card’s category. We also considered whether it charged industry-standard (or better) foreign transaction fees, late payment fees, balance transfer fees and more.
• Rewards rate: Not all no annual fee credit cards carry rewards as some are designed to assist with other financial goals (like paying off high interest debt via a balance transfer). However, for cards that do offer rewards, we considered whether the return rate was competitive for the category. For instance, many popular cash back credit cards with no annual fee offer 1.5% back on general purchases, so to be competitive in that category, a no annual fee card would need to offer that rate or higher.
• Promotional APRs: Some no annual fee credit cards offer a 0% introductory APR on purchases or balance transfers. If a card touted such an offer, we considered if the length of the promotional offer and any fees associated with it were competitive for that card category.
• Other features and benefits: Many no annual fee credit cards offer sign-up bonuses, certain supplemental insurance, price protection or extended warranties. We factored these and other ancillary benefits when choosing the best no annual fee credit cards.

All criteria used: Rates and fees, rewards rates, sign-up bonus, other promotional offers, redemption options and flexibility, regular APR, extra features and benefits, customer service, credit needed, security, ease of application, ability to upgrade

Additional information on no annual fee credit cards

For more information on all things no annual fee cards, continue reading content from our credit card experts:

• Tips for negotiating an annual fee
• No annual fee credit card reviews
• Best no annual fee business credit cards
• Best no annual fee credit cards for small dollar purchases

About the Author

Ryan Noonan

Ryan Noonan began working in marketing for Bankrate.com in December 2018 and has since begun using his industry expertise as a writer, contributing to both Bankrate.com and Creditcards.com. During his time in Columbus, Ryan led philanthropy efforts for his fraternity, Phi Sigma Kappa. Ryan is fascinated by the doors credit card rewards open up to incredible opportunities and experiences, particularly world travel. Ryan has traveled to the Cayman Islands, the United Kingdom, Italy and Switzerland, among other destinations thanks to credit card and airline mile programs.

About the Editor

Tracy Stewart

Tracy Stewart is a personal finance writer specializing in credit card loyalty programs, travel benefits, and consumer protections. He previously covered travel rewards credit cards, budget travel, and aviation news at SmarterTravel Media. His money-saving tips have appeared in the Washington Post, the Wall Street Journal, Consumer Reports, MarketWatch, Vice, People, the Zoe Report and elsewhere.

About the Reviewer

Erica Sandberg

Erica Sandberg is a prominent personal finance authority and author of "Expecting Money: The Essential Financial Plan for New and Growing Families." Her articles and insights are featured in such publications as The Wall Street Journal, Pregnancy, Babytalk, Redbook, Bank Investment Consultant, Prosper.com, MSN Money and Dow Jones MarketWatch. An active television and radio commentator, Sandberg is the credit and money management expert for San Francisco’s KRON-TV, a frequent guest on Forbes Video Network, Fox Business News, Bloomberg TV and all Bay Area networks. Prior to launching her own reporting and consulting business, she was affiliated with Consumer Credit Counseling Services of San Francisco where she counseled individuals, conducted educational workshops and led the media relations department. Sandberg is a member of the Society of American Business Editors and Writers and on the advisory committee for Project Money.