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Though credit cards with annual fees can be worth it, you don’t have to pay more to get valuable credit card rewards and benefits. If you’re uncomfortable with a yearly fee or you’re planning to use your credit card only occasionally, a no-annual-fee card is a great choice. Check out our picks for the best no-annual-fee credit cards of 2022 from our partners.
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BEST FOR CUSTOMIZABLE REWARDS
U.S. Bank Cash+® Visa Signature® Card
Reward rate
5
5% cash back on your first $2,000 in eligible net purchases each quarter on the combined two categories you choose.
3
5% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Travel Center.
-1
1% cash back on all other eligible purchases.
1
1% cash back on all other eligible purchases.
Intro offer
$200 bonus
Annual fee
$0
Regular APR
16.74% - 26.74% (Variable)
Recommended credit
Good to Excellent (670 - 850)
Pros
- Multiple rotating and fixed bonus categories, which can make it easier to earn rewards quickly
- The $200 sign-up bonus (after spending $1,000 within the first 120 days of account opening) increases the card’s first-year value
Cons
- The $2,000 combined spending cap each quarter for your chosen 5% categories limits your ability to rake in rewards
- Having to track and enroll in rotating categories can be a hassle for some
- New! $200 bonus after spending $1,000 in eligible purchases within the first 120 days of account opening.
- 5% cash back on your first $2,000 in combined eligible purchases each quarter on two categories you choose
- 5% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Travel Center
- 2% cash back on one everyday category, like Gas Stations/EV Charging Stations, Grocery Stores or Restaurants
- 1% cash back on all other eligible purchases
- 0% Intro APR on purchases and balance transfers for the first 15 billing cycles. After that, a variable APR currently 16.74% – 26.74%
- No Annual Fee
- Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
- Terms and conditions apply.
ADDITIONAL FEATURES
Purchase intro APR
0% Intro APR on purchases for the first 15 billing cycles.
Balance transfer intro APR
0% Intro APR on balance transfers for the first 15 billing cycles.
BEST FOR PERSONAL LOAN ALTERNATIVE
Upgrade Cash Rewards Elite Visa®
Reward rate
2.2
Earn 2.2% unlimited cash back on card purchases every time you make a payment
Intro offer
$200
Annual fee
$0
Regular APR
8.99% - 29.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
Pros
- You won’t need to use your reward earnings to offset any maintenance fees.
- You’ll earn a bonus after you open a Rewards Checking account and make three purchases with the card in your first 60 days.
Cons
- The high end APR range is well above average. That could prove costly if you don’t have the credit needed to qualify for the lower range and you end up carrying a balance.
- You won’t get a break on interest if you carry a balance since there are no intro APR offers on purchases or balance transfers.
- $200 bonus on your Upgrade Card after opening a Rewards Checking account and making 3 debit card transactions within 60 days.*
- New Feature: Pay your balance in full early each month and avoid interest with EarlyPay.
- Earn 2.2% unlimited cash back on card purchases every time you make a payment
- See if you qualify in seconds with no impact to your credit score
- No Fees – $0 annual fees, $0 activation fees, $0 maintenance fees
- Combine the flexibility of a card with the low cost and predictability of a loan
- Access to a virtual card, so you can start earning while you wait for your card to arrive in the mail.
- Contactless payments with Apple Pay® and Google Pay™
- Mobile app to access your account anytime, anywhere
- Enjoy peace of mind with $0 Fraud liability
- *To qualify for the $200 welcome bonus, you must open and fund a new Upgrade Rewards Checking Account and make 3 debit card transactions within 60 days of your Upgrade Card account opening. The bonus credit will be posted to your Upgrade Card as a rewards credit within 1-2 billing periods following the third debit transaction on your Rewards Checking account. Your Upgrade Card must be in good standing to receive the bonus.
ADDITIONAL FEATURES
Purchase intro APR
N/A
Balance transfer intro APR
N/A
BEST FOR GAS
Blue Cash Everyday® Card from American Express
Reward rate
3
3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
1
New! 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
-1
1% Cash Back on other purchases.
1
1% Cash Back on other purchases.
Intro offer
$200
Annual fee
$0
Regular APR
16.24%-27.24% Variable
Recommended credit
Good to Excellent (670 - 850)
Pros
- It carries one of the best combined cash back rates available at no annual fee at U.S. gas stations and U.S. supermarkets. Those two categories make up a big chunk of the average person’s budget.
- You can earn $7 back per month on The Disney Bundle streaming package, which includes Disney+, Hulu, and ESPN+ (each month you spend $13.99 or more on an eligible subscription, terms apply). To earn that much back in a month via the card’s 3 percent categories, you’d typically need to spend over $230.
Cons
- You’ll only earn 3 percent cash back on your first $6,000 in annual spending in each of the card’s bonus categories (then 1 percent). While that’s a high limit, it could hold you back if you’re sharing an account across multiple households.
- The card carries a 2.7 percent foreign transaction fee, so it’s not a good option if you’re looking for a single rewards card you can use at home and abroad.
- Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
- No Annual Fee.
- Balance Transfer is back! Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 16.24% to 27.24% variable APR.
- 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
- New! 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
- 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%.
- Get $7 back each month after using your Blue Cash Everyday® Card to spend $13.99 or more each month on an eligible subscription to The Disney Bundle, which includes Disney+, Hulu, and ESPN+. Enrollment required.
- Terms Apply.
ADDITIONAL FEATURES
Purchase intro APR
0% on purchases for 15 months
Balance transfer intro APR
0% on balance transfers for 15 months
BEST FOR GROCERIES
Blue Cash Preferred® Card from American Express
Reward rate
6
6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
1
6% Cash Back on select U.S. streaming subscriptions.
3
3% Cash Back at U.S. gas stations
0
3% Cash Back at U.S. gas stations
1
1% Cash Back on other purchases
Intro offer
$350
Annual fee
$95
Regular APR
16.24%-26.24% Variable
Recommended credit
Good to Excellent (670 - 850)
Pros
- The base reward program is uber-lucrative, making this card a good choice for people looking for long-term value.
- You don’t have to keep track of rotating spending categories or enrollment deadlines.
Cons
- There is no intro APR offer on balance transfers.
- You won’t earn the extra rewards for grocery shopping at major superstores and wholesale clubs, as those don’t count as U.S. supermarkets.
- Earn a $350 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
- Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments. Pay $0 plan fees on plans created during the first 12 months after account opening. Plans created after that will have a fixed monthly plan fee up to 1.33% of each purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
- Low intro APR: 0% intro APR for 12 months on purchases from the date of account opening, then a variable rate, 16.24% to 26.24%.
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
- 6% Cash Back on select U.S. streaming subscriptions.
- 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
- 1% Cash Back on other purchases.
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
- $95 Annual Fee.
- Terms Apply.
ADDITIONAL FEATURES
Purchase intro APR
0% on purchases for 12 months
Balance transfer intro APR
N/A
BEST FOR ROTATING CASH BACK CATEGORIES
Discover it® Cash Back
Reward rate
5
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
1
Plus, earn unlimited 1% cash back on all other purchases – automatically.
Intro offer
Cashback Match™
Annual fee
$0
Regular APR
13.49% - 24.49% Variable
Recommended credit
Good to Excellent (670 - 850)
Pros
- Discover will match the cash back you earn at the end of the first year.
- There are a few cash back redemption options, including credit to your account and donations.
Cons
- You must enroll to take advantage of the bonus categories each quarter.
- There is a spending limit on your highest cash back category each quarter ($1,500 in combined purchases per quarter).
- Intro Offer: Unlimited Cashback Match – 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.
- Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
- New! Discover helps remove your personal information from select people-search websites. Activate by mobile app for free.
- Every $1 you earn in cash back is $1 you can redeem.
- New Intro APR: Get a 0% intro APR for 15 months on purchases. Then 13.49% to 24.49% Standard Variable Purchase APR applies, based on credit worthiness.
- No annual fee.
ADDITIONAL FEATURES
Purchase intro APR
0% for 15 months
Balance transfer intro APR
0% for 15 months
BEST FOR UP TO 2% CASH BACK
Citi® Double Cash Card
Reward rate
2
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
Intro offer
$200 Cash Back
Annual fee
$0
Regular APR
16.24% - 26.24% (Variable)
Recommended credit
Good to Excellent (670 - 850)
Pros
- You can convert your cash back earnings to Citi ThankYou points when paired with a card like the Citi Premier® Card, which can be redeemed for travel, gift cards and more.
- There are no spending category restrictions or rotating categories
Cons
- Your rewards can expire with this card if you don’t use it for a year.
- The sign-up bonus spending requirement is higher than you’ll find on many no-annual-fee cash back cards.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
- For a limited time, earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 16.24% – 26.24%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
ADDITIONAL FEATURES
Purchase intro APR
N/A
Balance transfer intro APR
0% intro for 18 months on Balance Transfers
A closer look at the best no-annual-fee credit cards
Capital One Quicksilver Cash Rewards Credit Card: Best overall cash back card
- What we love about the Capital One Quicksilver Cash Rewards card: For a no-annual-fee card, the Quicksilver has a noteworthy set of perks and a decent rewards rate. It offers several travel and shopping protections, including emergency card replacement, and fraud coverage — and the unlimited 1.5 percent cash back on all purchases can provide steady value for cardholders. You can also earn unlimited 5 percent cash back on hotel and rental cars booked through Capital One Travel (terms apply).
- Who this card is good for: Cash back first-timers seeking a simple no-annual-fee card.
- Alternatives: For people who’d rather focus their spending on a few particular categories, the Bank of America® Customized Cash Rewards credit card could provide higher cash back earning potential in the long run.
Read our full Capital One Quicksilver card review.
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Capital One SavorOne Cash Rewards Credit Card: Best card for dining and entertainment
- What we love about the Capital One SavorOne Cash Rewards card: If you want a card that rewards fun experiences, you’ll have a hard time finding a better option than the SavorOne. The card is well-rounded and potentially lucrative for almost everyone because of its rewards rate and no annual fee, and it rewards both everyday and entertainment purchases at a decent rate. Entertainment may sound vague, but concerts, movies, sporting events, theme parks and tourist attractions are all included in Capital One’s entertainment bonus category.
- Who this card is good for: People who enjoy dining out and entertainment lovers would get the most value on purchases.
- Alternatives: Cardholders seeking a card with more flexibility in cash back earnings and reward redemption should consider the Discover it Cash Back card, which comes with an unlimited Cashback Match™ welcome offer.
Read our full Capital One SavorOne review.
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Discover it Cash Back: Best card for flexible spenders
- What we love about the Discover it Cash Back card: Discover’s cash back categories are noteworthy, and you could potentially double your cash back earnings at the end of your first year with the Cashback Match program (Discover will automatically match all the cash back you’ve earned at the end of your first year). Plus, it offers 5 percent cash back (activation required) on up to $1,500 spent in quarterly rotating bonus categories, then 1 percent. With no annual fee, this card will add plenty of value to any wallet.
- Who this card is good for: Someone who wants to cash in on a variety of seasonal expenses.
- Alternatives: Flat-rate cash rewards cards such as the Wells Fargo Active Cash® Card may be better for people who prefer a simple rewards structure.
Read our full Discover it Cash Back review.
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Blue Cash Everyday Card from American Express: Best card for families
- What we love about the Blue Cash Everyday Card from American Express: The simple, everyday bonus categories make this card worthwhile, especially since it has no annual fee. Cardholders will also receive a welcome offer of $200 in statement credits — given they spend $2,000 within the first six months of account opening — making the card one of the most lucrative options among other no-annual-fee cards.
- Who this card is good for: Someone seeking a low-maintenance cash back card to use on everyday essentials or for those looking to earn an additional 3 percent cash back on U.S. online retail purchases, on up to $6,000 per year, then 1 percent.
- Alternatives: Target, Walmart or Sam’s Club loyalists may find that a retail store card such as the Sam’s Club® Mastercard® or the Capital One Walmart Rewards® Mastercard® offers more value since these stores don’t qualify for the Blue Cash Everyday Card’s U.S. supermarket cash back category.
Read our full Blue Cash Everyday Card review.
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Citi Custom Cash Card: Best card for customized rewards
- What we love about the Citi Custom Cash card: The bonus category automatically shifts to match your spending on purchases in your top eligible spend category each billing cycle (the card touts 5 percent cash back in 10 bonus categories — one of the highest cash back rates for a card with no annual fee).
- Who this card is good for: Someone who wants to earn a high cash back rate without being limited to one or two category options.
- Alternatives: If you want to earn rewards in multiple categories simultaneously or want to consistently earn higher cash back on both groceries and gas, for example, you may be better off with a more traditional tiered card such as the Blue Cash Preferred® Card from American Express.
Read our full Citi Custom Cash Card review.
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Chase Freedom Unlimited: Best overall rewards card
- What we love about the Chase Freedom Unlimited card: Its versatility and flexible redemption options prove that there is a ton of potential value packed into this card. During your first year, you earn an extra 1.5 percent on all rewards, which means 6.5 percent on travel through Chase Ultimate Rewards, 4.5 percent on drugstores, and 3 percent on all other purchases.You can also redeem your rewards for both cash back and travel (purchased through Chase Ultimate Rewards), but you can do so for equal value — 1 cent apiece.
- Who this card is good for: For someone who can’t decide between a cash back or a travel credit card, this card is a great way to dip a toe into travel rewards without an exclusive commitment.
- Alternatives: For international travelers, credit cards without a foreign transaction fee such as the Capital One Quicksilver Cash Rewards Credit card could earn you better rewards when booking travel outside of the U.S.
Read our full Chase Freedom Unlimited review.
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Wells Fargo Active Cash Card: Best card for flat-rate cash rewards
- What we love about the Wells Fargo Active Cash card: The sign-up bonus and unlimited 2 percent cash rewards on purchases alone make this a standout flat-rate credit card, and the 15-month 0 percent intro APR period on purchases and qualifying balance transfers from account opening (then 17.24 percent, 22.24 percent, or 27.24 percent variable) adds even more value.
- Who this card is good for: Anyone looking for a well-rounded flat-rate cash rewards credit card with no annual fee and plenty of perks.
- Alternatives: For rewards seekers looking to earn more than 2 percent back in select categories, the U.S. Bank Cash+® Visa Signature Card could give more overall value in key spending categories.
Read our full Wells Fargo Active Cash Card review.
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Citi Double Cash Card: Best card for high reward potential
- What we love about the Citi Double Cash card: With no bonus categories or annual fee to worry about and a solid cash back rate, this card can be a valuable, stress-free addition to most wallets. Plus, its unique rewards system lets you earn 1 percent cash back when you buy and another 1 percent when you pay.
- Who this card is good for: People who want a flat-rate cash back card with no annual fee.
- Alternatives: The Chase Freedom Unlimited® Card might be a better choice for those looking for a more lucrative sign-up bonus.
Read our full Citi Double Cash Card review.
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U.S. Credit card Cash+ Visa Signature Card: Best card for bonus category options
- What we love about the U.S. Bank Cash+: The freedom to customize so much of your earning experience is a strong draw for this card. You have the power to choose all of your top earning spending categories, two in your highest earning tier and one in your second highest.
- Who this card is good for: Seasoned credit card spenders and rewards strategists who know exactly where their money goes and exactly where they can earn the most.
- Alternatives: Hitting the quarterly spending cap on this card can dampen your earning potential quickly. If unlimited rewards on all kinds of purchases is something you’re after, the Wells Fargo Active Cash offers one of the highest flat rewards rates on the market.
Read our full U.S. Bank Cash+ Visa Signature Card review.
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Chase Freedom Flex: Best no annual fee card for multifaceted spenders
- What we love about the Chase Freedom Flex card: Cardholders can take advantage of its flexibility, as the Freedom Flex features bonus categories that rotate each quarter. If you have commitment issues when it comes to rewards categories, this card could be a great fit.
- Who this card is good for: Someone who wants to earn rewards in several purchase categories.
- Alternatives: For grocery shoppers looking to get a go-to card that consistently rewards these purchases exclusively, the Blue Cash Everyday Card from American Express might better align with your spending — especially if you make significant grocery purchases each week.
Read our full Chase Freedom Flex review.
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Capital One Platinum Credit Card: Best card for credit builders
- What we love about the Capital One Platinum card: For a card available to consumers with less-than-ideal credit, its set of features is very impressive. The Capital One Platinum has no annual fee and no foreign transaction fees, and your account will be automatically reviewed for a higher credit limit after six months.
- Who this card is good for: Someone with fair to good credit trying to improve their score.
- Alternatives: There are no-annual-fee cards with more valuable perks such as the Citi Custom Cash Card for rewards seekers looking to earn cash back or points on purchases.
Read our full Capital One Platinum Credit Card review.
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Capital One VentureOne Rewards Credit Card: Best card for new travelers
- What we love about the Capital One VentureOne Rewards card: With this card, the freedom to book your rewards based on your preferences is a huge advantage. You can use your Capital One miles to book hotels, flights and rental cars through Capital One’s website, or you can use your card to book travel through another service or website and redeem your miles as a statement credit to cover the cost.
- Who this card is good for: People who are occasional or beginner travelers.
- Alternatives: If you are a frequent traveler looking to maximize your rewards earnings, and you wouldn’t mind paying a few hundred dollars for an annual fee, you may prefer the Chase Sapphire Reserve® — as it offers a higher rewards rate than VentureOne Rewards.
Read our full Capital One VentureOne Rewards Credit Card review.
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Wells Fargo Autograph Card: Best for everyday travel
- What we love about the Wells Fargo Autograph card: This rewards card gives you plenty of places to earn points due to its array of spending categories.
- Who this card is good for: Credit card newbies and minimalists alike who want a straightforward rewards plan without the hassle of tracking rotating categories or who value affordability for an expansive rewards payoff.
- Alternatives: The one key spending category missing from the Wells Fargo Autograph is a groceries or supermarket purchases option. To cover this category, alongside plenty of others, you may consider the Bank of America Customized Cash, the Blue Cash Everyday or one of our other best credit cards for groceries. All of these alternatives still skip the annual fee, so you won’t have to sacrifice that perk.
Read our full Wells Fargo Autograph Card review.
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What is a no-annual-fee credit card?
Pros and cons of no-annual-fee credit cards
- Pros
- A low-cost method to build up your credit: Your credit card activity will be reported to the credit bureaus each month and responsible use, like paying down your balances and making payments on time, will help you to build up a positive credit history—all at no extra cost.
- Affordability with rewards opportunity: You don’t have to pay a premium to get rewards with the best no-annual-fee credit cards.
- No planning to cover the cost of an annual fee: If your card carries an annual fee, you have to think about affording that fee. The good news is that with a no-annual-fee card, you don’t have to worry about covering this cost.
- cons
- Small sign-up bonuses: If the card has a sign-up bonus at all, it’s typically smaller than the offers associated with annual fee credit cards.
- Rewards aren’t usually as valuable as annual fee card counterparts: No-annual-fee credit cards usually have lower rewards rates and fewer extras than their fee-charging counterparts.
- The card may carry other fees: No-annual-fee cards might always seem like the best choice at first glance, but that’s not necessarily the case. Other fees to note could be foreign transaction and balance transfer fees, so you’ll need to review a card’s full terms and conditions to make sure it fits with your financial goals and spending habits.
Creditcard's Insight
Travel credit cards usually come with annual fees. But if you’re a frequent traveler, a good travel card like the Chase Sapphire Preferred® Card can easily make up for its annual fee in rewards value.
Who should get a no-annual-fee credit card?
If you’re new to the world of credit cards, a card with no annual fee might be the right choice until you become more experienced. You won’t have to worry about developing a strategy to maximize the card’s benefits to compensate for an annual fee.
Not having an annual credit card fee added to the mix makes it easier to keep your budget simplified, which can be a welcome relief for anyone building or rebuilding their credit. There are a number of cards designed for people with no credit history or bad credit that don’t charge annual fees (although secured credit cards typically require a one-time security deposit).
Some no-annual-fee cards offer 0 percent introductory APR on purchases, balance transfers or both. These cards can provide a temporary interest-free window to pay for a large purchase or a balance transferred from a different credit account.
Those who already own top-tier cards might find the addition of a carefully chosen no-annual-fee card worth their time. Credit card combinations, like pairing a premier travel card with an everyday cash back card, could round out your plastic portfolio.
Still unsure if a low-interest credit card is right for you? Check out our Credit Card Spender Type Tool, where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.
Creditcard's Insight
Not all credit cards with annual fees have the long-term value you may need. Instead of canceling your card and taking a hit on your credit score, you could always downgrade to a no-annual-fee card.
How to choose the best no-annual-fee credit card
Understanding your spending habits is key to figuring out which no-annual-fee card will be most beneficial for you. A lot of cards offer boosted rewards rates for spending in certain categories. Therefore, knowing which of these categories you spend the most in will help you pinpoint the card that gives you the most bang for your buck.
It’s important to note that some cards may offer higher rewards rates than others. Other cards may also offer specific types of rewards that vary for each card. For example, one credit card may only offer rewards in the form of cash back while another card may offer travel points and miles. Always know exactly what you’re looking to get out of your card in terms of rewards and benefits.
Keep in mind that cards with an annual fee usually come with more desirable perks. If you’re still uncomfortable with the idea of an annual fee, you’re just getting started on your credit card journey or you’ve done your research and the rewards associated with a no-annual-fee card fit well with your lifestyle, sticking to a card without that extra cost could be your best bet.
How can you maximize your no-annual-fee credit card?
A no-annual-fee credit card can be a great addition to your wallet if used correctly. Keep these tips in mind when using your card:
- Pay your balance on time and in full each month. Keeping your spending in check so you can pay off your balance in full each month will allow you to take full advantage of your no-annual-fee card’s low ownership cost and keep your credit utilization low.
- Pair the no annual fee card with a rewards card. When you’re comfortable managing your no-annual-fee credit card, it’s worth taking a look at pairing it with a card that charges an annual fee but earns more rewards.
- Keep the card open when you upgrade. With no-annual-fee to pay for keeping the card, you can use an old no annual fee card to boost your credit score by keeping the card open to improve your credit utilization ratio and credit history length.
For example, one of the best no-annual-fee credit cards, the Chase Freedom Unlimited, earns cardholders cash back on certain categories, but pairing it with the Chase Sapphire Reserve® on travel will earn solid cash back and travel rewards at the same time.
How we chose the best no-annual-fee credit cards
All credit cards from our partners are rated with a 5-star scoring system. For cards in this category, we focused on the merits of each selection apart from charging no-annual-fee. Those specific criteria included:
Rewards rate and value
Some no-annual-fee cards offer fairly decent flat-rate cash rewards or travel miles (usually between 1.5 percent to 2 percent back) while others have rotating spending categories that offer boosted rewards rates directly dependent on how you spend (typically between 2 percent and 5 percent, though bonus rewards may be subject to a cap and then revert to a base spending rate after that cap is met).
Redemption options
Rewards often come in the form of cash back that you can get as a direct deposit into a bank account, statement credit, gift cards and more. Some no-annual-fee travel credit cards earn miles that can be redeemed for statement credits or transferred to a number of airline or hotel partners. The best no-annual-fee credit cards let you redeem rewards in a useful, flexible way.
Extras and discounts
Some no-annual-fee credit cards offer retail discounts, insurance coverage and other perks that improve their overall value. These additions make the perk of no-annual-fee just a little sweeter because you still have access to key assets and benefits.
Variable APR
The best no-annual-fee credit cards offer reasonable interest rates in case you carry a balance. Having a no-annual-fee card with a high interest rate could hamper the benefits of having no-annual-fee, especially if you’re a budget-conscious shopper or you expect to rotate a balance from time to time. (Note: it’s best to pay off balances in full whenever possible to avoid interest).
Frequently asked questions about low-interest credit cards
The simplest explanation involves the relationship between cost and benefits. A card that offers higher rewards rates and more valuable perks will cost more to provide, so the issuer charges an annual fee.
Choosing a no-annual-fee credit card might seem like a no-brainer — who would want to pay a yearly fee when you don’t have to? However, there are times when an annual fee is justified. Plenty of annual fee credit cards can pay for themselves — just be sure it’s affordable for you. Estimate how much you could earn in rewards and add it to the value of the card’s perks and benefits. Then compare this value to the card’s annual price tag to see if it’s worth it for you. If stockpiling rewards doesn’t interest you, a no-annual-fee card is likely the better choice.
No annual fee cards for bad credit are rare but not impossible to find. A likely option might be getting a secured credit card that doesn’t charge an annual fee.
There are strategies you can use to potentially get your card issuer to waive an annual fee, at least temporarily, like contacting customer service or seeking a waiver for use exchange.