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There are lots of reasons why you might choose a credit card that doesn’t charge an annual fee, the most obvious reason being affordability. A no annual fee card can help keep your immediate costs down while still providing plenty of value by way of lucrative sign-up bonuses, ancillary benefits and rewards programs. Some no annual fee cards are less about earning rewards and focused instead on helping you pay down high-interest debts via a balance transfer. If you already pay an annual fee, you may even be able to persuade the issuer to waive it.
There are lots of reasons why you might choose a credit card that doesn’t charge an annual fee, the most obvious reason being affordability. A no annual fee card can help keep your immediate costs down while still providing plenty of value by way of lucrative sign-up bonuses, ancillary benefits and rewards programs. Some no annual fee cards are less about earning rewards and focused instead on helping you pay down high-interest debts via a balance transfer. If you already pay an annual fee, you may even be able to persuade the issuer to waive it.
Our rating:4.1
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
$200 cash rewards
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual fee
$0
Regular APR
19.74%, 24.74%, or 29.74% Variable APR
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.8
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
3%
3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
3%
3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%.
1%
1% Cash Back on other purchases.
At A Glance
Intro offer
Earn $200
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
Annual fee
$0
Regular APR
18.49% - 29.49% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
See if you’re pre-approved for this card using our CardMatch tool.
Our rating:4.9
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
8% Cash Back on Capital One Entertainment purchases
5%
5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
3%
3% Cash Back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services
1%
1% Cash Back on all other purchases
At A Glance
Intro offer
$250 Cash Back
$250 Cash Back after you spend $500 on purchases within 3 months from account opening
Annual fee
$0
Regular APR
19.74% - 29.74% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.5
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter.
4%
Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2026.
1%
Earn unlimited 1% cash back on all other purchases.
At A Glance
Intro offer
$200
Earn $200 in cash back after you spend $1500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® points, which can be redeemed for $200 cash back.
Annual fee
$0
Regular APR
18.74% - 28.74% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.6
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate.
1%
Plus, earn unlimited 1% cash back on all other purchases - automatically.
At A Glance
Intro offer
Cashback Match
Intro Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Annual fee
$0
Regular APR
18.74% - 27.74% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.1
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
5 Miles per dollar on hotels and rental cars booked through Capital One Travel
1.25 Miles
1.25 Miles per dollar on every purchase, every day
At A Glance
Intro offer
20,000 miles
Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel
Annual fee
$0
Regular APR
19.74% - 29.74% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:3.7
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
1.5%
Earn unlimited 1.5% cash back on every purchase, every day
At A Glance
Intro offer
$200
Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
Annual fee
$0
Regular APR
19.74% - 29.74% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.4
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Earn 3% cash back in the category of your choice (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases).
2%
Earn automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases).
1%
Earn unlimited 1% on all other purchases.
At A Glance
Intro offer
$200
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
Annual fee
$0
Regular APR
18.74% - 28.74% Variable APR on purchases and balance transfers
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.0
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Earn 1x points on rent without the transaction fee, up to 100,000 points in a calendar year. When you use the card 5 times each statement period using your Bilt Mastercard, you'll earn points on rent and qualifying net purchases.
At A Glance
Intro offer
No current offer
Annual fee
$0
Regular APR
See Terms
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:3.8
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
$200
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
Annual fee
$0
Regular APR
18.74% - 28.74% Variable APR on purchases and balance transfers
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:2.6
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
All information about the Wells Fargo Cash Wise Visa® card, the Chase Freedom Flex has been collected independently by CreditCards.com. The issuer did not provide the content, nor is it responsible for its accuracy.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
Comparing the best no annual fee credit cards of 2024
Wells Fargo Active Cash® Card: Best for 2% cash rewards
Best features: Rewards are widespread and never expire so long as your account remains in good standing. 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 $500 in purchases within the first three months of account opening. Cardholders can also enjoy a 0% introductory APR on purchases as well as qualifying balance transfers for 12 months from account opening, then 19.74%, 24.74%, or 29.74% Variable APR.
Biggest drawbacks: 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).
Alternatives: The Citi Custom Cash offers 5% cash back on your highest eligible spend category each billing cycle (on up to $500 in purchases, then 1%), so it automatically adjusts to fit your spending. This can prove to be more lucrative than a flat-rate card, especially if your spending varies from month to month.
Bottom line: 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.
Blue Cash Everyday® Card from American Express: Best for U.S. gas station and U.S. supermarket purchases
Best features: 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%).
Biggest drawbacks: The spending cap may make it difficult for people with large groceries and gas budgets to earn on every purchase throughout the year. If you spend more than $500 on gas and groceries, then you’ll hit that 3% rewards spending limit and earn only 1% until the next year.
Alternatives: 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.
Bottom line: We love this card for frugal families due to the lack of an annual fee and the competitive bonus categories for everyday expenses.
Capital One Savor Cash Rewards Credit Card: Best for dining and entertainment
Best features: Cardholders can 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. There’s a welcome bonus of $250 after you spend $500 in the first three months of opening your account. That’s competitive in the realm of cash back cards’ welcome offers.
Biggest drawbacks: 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.
Alternatives: Moderate spenders who rarely dine out may be better off with a single flat-rate credit card like the Capital One Quicksilver Cash Rewards card that doesn’t require tracking bonus categories.
Bottom line: This is one of the best cards for restaurants and a great card for foodies, given it offers best-in-class cash back on dining, groceries and entertainment for a no annual fee (See rates and Fees) credit card.
Citi Custom Cash® Card: Best for automatically maximizing rewards
Best features: The Citi Custom Cash earns 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. It automatically chooses your top spend category, taking the strategizing off your hands and makes it easier for you to earn maximum cash back on your spending.
Biggest drawbacks: 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.
Alternatives: 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. The Bank of America Customized Cash Rewards Card does just that – you can earn 3% cash back in an eligible category of your choice, plus 2% back on groceries and at wholesale clubs (on up to $2,500 in combined 3% and 2% categories per quarter, then 1%), and then 1% on everything else. While it’s not as much as 5%, you can strategize to earn more than 1% on multiple spend categories.
Bottom line: 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.
Discover it® Cash Back: Best for rotating cash back categories
Best features: This popular Discover credit card offers a whopping 5% cash back in rotating categories on up to $1,500 in quarterly purchases in Discover’s Cash Back Calendar throughout the year (enrollment required, then 1%). Also, this card’s Cashback Match™ feature at the end of your first year with the card can easily beat out other cash back cards’ sign-up bonuses.
Biggest drawbacks: 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.
Alternatives: Again, a flat-rate rewards card like the Wells Fargo Active Cash offers 2% cash rewards on purchases may better suit your needs. While this card doesn’t offer 5% back, the consistent 2% cash rewards can still be lucrative.
Bottom line: Rewards maximizers will welcome the opportunity to earn a large amount of bonus cash back on rotating categories.
Capital One VentureOne Rewards Credit Card: Best for occasional travel + intro APR
Best features: 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. Cardmembers can also earn 20,000 miles (worth up to $200 in travel purchases) after spending $500 in the first three months of account opening.
Biggest drawbacks: 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.
Alternatives: Any traveler who wants to maximize their rewards earning potential will want to look at cards that offer at least 1.5 miles per dollar on general purchases, like the Bank of America® Travel Rewards Credit Card.
Bottom line: The sign-up bonus and intro APR offer make this a great choice for the occasional traveler looking for a travel card with no annual fee.
Capital One Quicksilver Cash Rewards Credit Card: Best for new cardholders
Best features: 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. The Quicksilver’s unlimited flat cash back rate also 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.
Biggest drawbacks: The go-to rate after the intro APR offer on purchases and balance transfers ends is high, 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 (4% at a promotional APR that Capital One may offer you at any other time, See rates and Fees).
Alternatives: 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, like the Blue Cash Everyday or the Chase Freedom Flex®.
Bottom line: We like the Capital One Quicksilver for first-time rewards credit cardholders, given the ease of earning and redeeming cash back.
Bank of America® Customized Cash Rewards credit card: Best for customized rewards categories
Best features: 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 in combined 3% and 2% categories, then it’s 1%). You can change your customized rewards category each calendar month.
Biggest drawbacks: 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.
Bottom line: 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.
Best features: 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. Points are worth 1.25 cents each when you redeem for travel through the Bilt portal — 25% 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).
Biggest drawbacks: 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 airport lounge access or credits for expedited security screening.
Alternatives: 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, such as the Blue Cash Everyday Card.
Bottom line: This card is a great fit for long-term renters, aspiring homeowners and frequent travelers who want to minimize fees.
Best for simplicity: Synchrony Premier World Mastercard®
Best features: Earning and redeeming rewards couldn’t be easier thanks to this card’s flat cash back rate and automatic redemption. There’s no need to worry about bonus categories, point values or any of the complexity of many popular rewards cards.
Biggest drawbacks: It’s missing an intro APR and sign-up bonus, so it’s at a clear disadvantage compared to the top cash back cards. Many cards offer at least a $200 sign-up bonus after $500 in spending in your first three months. Earning that much in cash back with the Synchrony Premier would require $10,000 in spending.
Alternatives: Despite its slightly lower cash back rate (1.5% back on all eligible purchases), the Capital One Quicksilver Cash Rewards Credit Card could offer better value with its sign-up bonus and intro APR. The bonus in particular offers such a big head start that it could take thousands in spending to catch up with the Synchrony Premier.
Bottom line: If you’re looking for a solid cash back rate but don’t want to deal with complicated rewards programs, this card is a decent low-cost option.
Bank of America® Unlimited Cash Rewards credit card: Best Bank of America card for flat rate cash back
Best features: 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).
Biggest drawbacks: 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 period, you could end up paying quite a bit in interest, particularly if your card has a higher APR.
Alternatives: If you don’t meet the requirements to fully benefit from this card’s Preferred Rewards boost, then it might be best to take a look at another flat-rate cash rewards card with a similar welcome bonus, such as the Wells Fargo Active Cash Card.
Bottom line: 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.
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, like a membership fee. Annual fees are often tacked onto cards that give access to special benefits, like credit-builder cards, rewards cards or luxury travel cards, 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.
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, people new to credit cards will have an easier time learning the basics with a no annual fee card. People who want to establish credit should 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.
Pros and cons of no annual fee cards
Pros
0% intro APR: Many cards with no annual fee tend to offer longer 0% intro APR terms, a crucial feature if you’re looking to move debt or make a large purchase.
Ongoing interest: No annual fee cards’ ongoing APRs can often be lower than their premium siblings, but the ultimate goal is to avoid interest charges altogether, so find an affordable option with personally valuable rewards.
Free credit score: Many no annual fee cards, such as the Discover it Cash Back card, now offer a free credit score snapshot without affecting your credit.
Cons
You get what you pay for: Generally, credit cards that do not charge an annual fee offer fewer benefits when compared to credit cards that do charge an annual fee. This is a classic case of getting what you pay for and, really, the one major drawback of no annual fee cards.
Lower sign-up bonuses: If the card even has a sign-up bonus, it will likely be a smaller offer than those associated with its counterparts that carry an annual fee.
The card may carry other fees: While not having to pay an annual fee is a nice perk, your card may have other fees. It’s important to consider what you’ll be using the card for. If you plan on traveling abroad, a card with a 3% foreign transaction fee may not make sense for you.
Should I get a no annual fee credit card?
Getting a no annual fee card may be a good idea for some people, but it may not be the ideal option for everyone based on their specific needs. For example, if you need to build credit, consolidate debt or add a low maintenance card to your wallet, a no annual fee card is best suited. However, if you travel frequently or desire luxury rewards and perks, a no annual fee card may not be the best option for you.
Who should get a no annual fee credit card
New credit card users: If you’ve never held a card before, you might want to jump in with a card that has no annual fee until you better understand the market. That way, you can get in the habit of remembering those monthly payments, keeping track of your expenses and searching for the next upgrade, be it a travel card or a 0% intro APR card.
People who need to consolidate debt: You don’t want to pay fees while you’re trying to get your finances in order, and with a no annual fee card, you can focus on getting out of debt without worrying about how much money is going out of your pocket.
People looking to rebuild credit: Similar to new card users, those looking to rebuild their credit can benefit from a no annual fee card. Some options are available to people with bad credit scores and have features to help improve your credit. Plus, avoiding the cost of an annual fee can make budgeting easier, giving you more leeway to improve your credit score through timely monthly payments.
Experienced cardholders looking to diversify: Cardholders carrying a top-tier card may be able to add some value to their wallet with a no annual fee card. Premier credit card rewards are often tied to specialized categories such as travel, so a general-purpose rewards card with no annual fee that you can use for everyday purchases could come in handy.
Occasional credit card users: If you plan to use your card only occasionally, a card with no annual fee is the most economical choice. With a card that charges an annual fee, you would need to spend a certain amount every year to make it worth your while. A no annual fee card is not only cheaper but simpler.
Who should skip a no annual fee credit card
Frills and benefit-seekers: No annual fee cards generally don’t provide the same level of consumer protections as cards with annual fees do — meaning you may not have the same travel protections and perks as cards without an annual fee, such as purchase protection, cellphone insurance or trip cancellation or interruption insurance, for example.
Frequent travelers: Anyone hoping to receive an introductory windfall of bonus points to put towards travel or loyalty status should look elsewhere. No annual fee cards tend to have less-than-stellar rewards programs for airplane or hotel brand loyalists, as the more valuable, high-end travel rewards and cardholder perks usually come with a card that has an annual fee.
Bonus-seekers: If you want a lucrative windfall of rewards or cash back in a sign-up bonus, then you’ll be hard-pressed to find it in a card without an annual fee. Cards without annual fees typically have smaller, lower-value welcome offers.
Rewards accumulators: While it’s certainly possible to reap in rewards with a no annual fee card, people looking for the highest level of return on their spending will likely find that with a card that carries an annual fee. Cards with no annual fees don’t usually offer much in terms of rewards in comparison, which means that if you want to make the most of your points, you’ll have to spend more than usual. This can be costly and may not work with your budget.
Upgrade candidates: If you are using a no annual fee credit card as a stepping stone for a future upgrade, keep in mind that not every credit card issuers offers a more premium version to graduate to, and the same goes for the reverse if you eventually want to downgrade.
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 people who are new to credit.
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:
This can be explained by observing the relationship between the cost and pricing of a card. A card that offers high rewards rates and valuable benefits will typically cost more for issuers to provide, so they will charge a higher price. Also, for consumers with below-average credit or a limited credit history, the annual fee will compensate for the financial risk that the issuer assumes.
Whether having an annual fee or not is better solely depends on the user and what your financial goals are. Individuals at the beginning of their credit journey, or those who want to rebuild their credit can focus on the card’s credit-building capabilities and other benefits while not worrying about having to pay an annual fee. This also holds true for those looking to consolidate debt, as many cards with no annual fee offer a 0% introductory APR on balance transfers.
However, the highest tier of rewards and luxurious perks are typically reserved for cards that carry an annual fee. Those who frequently travel and want to maximize their spending may opt for an option that offers premium benefits and the ability to offset their card’s annual fee in other ways.
It’s rare, but there are credit cards without an annual fee for consumers with bad credit and even no credit history. For example, there’s the Discover it® Secured Credit Card, which offers 2% at gas stations and restaurants for up to $1,000 a quarter in combined purchases, then it’s 1%.
If you are looking to potentially have your annual fee waived, at least in the short term, there are a few strategies you can use when conversing with your issuer. These include:
Ask to cancel: Explore calling your card issuer’s retention department. If you explain to them you want to close your account due to the annual fee, they may waive it. However, this is a risky move, as they may in fact close your account.
Ask for a match: If your issuer offers comparable cards that provide many of the same perks and benefits without the annual fee, you’re in a good spot to bargain. Make sure to research your options thoroughly before you begin negotiating.
Ask for a waiver in exchange for use: Your card issuer may be more inclined to waive your annual fee if you agree to spend a specific dollar amount using that card within a given amount of time. For example, if you spend $4,000 within six months, the issuer may offer you a credit for the amount of your fee. This scenario is also risky as you will not want to commit to spending more than you can pay back.
Unfortunately, you will still have to pay. Think of the annual fee as the cost to access the line of credit. You’ll be subject to the same fee whether you’re a frequent user or only make purchases on your card in emergency situations.
If you’re stuck with an annual fee you don’t want, do not immediately cancel your card, which can affect your credit score negatively. Your best recourse is to ask your issuer for the fee to be waived. If you’re denied, ask to downgrade your card. Credit card issuers may allow you to switch to a different card if they offer a version with no annual fee.
About the Author
Ryan Noonan
Ryan Noonan Ryan Noonan is a former writer for Bankrate and CreditCards.com and is a graduate of the School of Journalism at Ohio State University.
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.
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