Best No Annual Fee Credit Cards with Rewards and Perks

Credit cards with no annual fee offer cardholders a way to earn rewards, utilize perks, and build their credit without paying a yearly cost. If you’re searching for a new credit card, you’ve probably noticed that some charge an annual fee but make up for it with lucrative rewards and perks. However, with careful selection, you can find credit cards without an annual fee that still provide solid earnings and benefits.

This comprehensive guide examines over a dozen of the top no annual fee credit cards on the market to help you find the right card for your financial needs and spending habits. We’ll cover the pros and cons of no annual fee cards, provide tips on choosing the ideal card for your lifestyle, and share expert insights on maximizing these cards. Read on to find your perfect match.

What to Know About No Annual Fee Credit Cards

A no annual fee credit card gives cardholders an opportunity to earn rewards and use perks without charging a yearly fee to keep the account open. If you’re new to credit cards or don’t want to deal with justifying a high annual fee, a no annual fee card can be a smart choice. However, even experienced cardholders who already own premium cards might find value in carefully chosen no annual fee cards as supplemental options.

Pros and Cons of No Annual Fee Credit Cards

No annual fee credit cards are one of the more flexible and forgiving credit card options available since there’s no penalty for not using the card regularly. However, there are a few potential advantages and disadvantages to consider:

Pros

• Cost effective way to build credit – Your credit card activity will be reported to the credit bureaus each month. Responsible use — like paying balances on time—will help build your credit history.
• Affordability with rewards potential – You don’t have to pay a premium to earn rewards or useful benefits. Many no annual fee cards offer cash back, points or miles.
• No need to justify an annual fee – If your card has a fee, you have to use it heavily or maximize benefits to outweigh the cost. A no annual fee card eliminates this concern.

Cons

• Lower sign-up bonuses – If offered at all, bonuses are typically smaller than those on annual fee cards.
• Less valuable rewards – No annual fee cards usually have lower rewards rates and fewer perks than annual fee counterparts.
• Other fees may apply – No annual fee doesn’t guarantee a fee-free experience. Check for foreign transaction or balance transfer fees.

When a No Annual Fee Card is a Good Idea

A no annual fee credit card can make sense in several situations:

• If you’re new to credit cards, a no annual fee card allows you to gain experience without worrying about maximizing benefits to offset a fee.
• For anyone rebuilding credit, a no annual fee card simplifies your budget without an added annual card fee cost. There are options for those with no credit history or bad credit.
• Cards with 0% intro APRs on purchases or balance transfers provide an interest-free window to finance a large purchase or transfer debt from another account. Just be sure to pay off your balance before the intro period ends.
• Experienced cardholders may want to add a no annual fee card to complement premium cards they already have, creating an optimal combination.

When a No Annual Fee Card Isn’t the Best Option

In some cases, paying an annual fee is unavoidable or even beneficial:

• If you want luxury travel perks and benefits, no annual fee cards may disappoint since they offer fewer premium features like airport lounge access or concierge service.
• If you’re a rewards optimizer, annual fee cards tend to have higher rewards rates, bonus categories, point values, and additional perks that big spenders can capitalize on.

READ ALSO: Best Balance Transfer Credit Cards of 2024

Tips for Choosing the Best No Annual Fee Credit Card

With many solid no annual fee options available, here are some tips on selecting the right card for your financial situation:

• Evaluate your spending patterns – Recognize where you spend the most each month. Many no annual fee cards offer boosted rewards for category spending like groceries, gas, dining out, etc.
• Compare cash back vs. travel rewards – Cash back is simpler, but flexible travel cards allow you to redeem rewards for statement credits toward travel purchases. Consider your preferences.
• Check for intro APR offers – Look for cards offering 0% intro APR on purchases or balance transfers if you plan to carry a balance temporarily. Just pay off your balance before the intro period ends.
• Read the fine print on fees – Abscence of an annual fee doesn’t guarantee no other fees. Watch out for foreign transaction fees or high balance transfer fees.
• Consider combining with a premium card – Pairing a no annual fee card with a premium card that charges an annual fee can optimize your spending rewards.

Expert Tips for Maximizing No Annual Fee Credit Cards

To get the most from a no annual fee credit card, keep these expert tips in mind:

• Pay your bill on time and in full each month – Avoid interest charges and late fees that diminish the value of your no annual fee card.
• Keep old no annual fee cards open – This preserves your credit history length and credit utilization ratio, which helps your credit scores.
• Use in combination with a rewards card – Pair a no annual fee cash back card with a premium travel rewards card to complement your spending.
• Take advantage of unique perks – Look for underrated benefits like cell phone protection that provide extra value at no cost.
• Downgrade when a fee card loses value – Rather than canceling a card with an annual fee, change to a no annual fee version to keep your credit history.

How We Evaluate the Best No Annual Fee Credit Cards

To provide the top no annual fee card recommendations, we evaluate over 250 popular credit cards on criteria including:

• Rewards value – We estimate average rewards rates and potential annual earnings. Welcome bonus offers and flexible redemption add value.
• Fees and APR – Cards have no annual fee. We compare ongoing APRs and fees like foreign transaction fees. Intro 0% APR offers give added value.
• Flexibility – We favor rewards programs with generous earning structures and redemption options. Ability to transfer points to partners is ideal.
• Perks – Top perks like cell phone protection, shopping discounts and travel credits provide extra benefits. We highlight useful perks with tangible value.

Using this comprehensive methodology, we selected the following outstanding no annual fee credit cards across various categories.

Best No Annual Fee Credit Cards

Wells Fargo Active Cash® Card

The Wells Fargo Active Cash® Card is one of the best options available for a flat-rate cash back card with no annual fee. You’ll earn an unlimited 2% cash rewards on all purchases, with no category restrictions to track. New cardholders can earn a $200 cash rewards bonus after spending $500 in the first 3 months.

Other key benefits include:

• 0% intro APR for 15 months on purchases and qualifying balance transfers (then 18.24% – 28.24% Variable APR)
• Cell phone protection provides up to $600 coverage per claim against damage or theft, subject to a $25 deductible
• Visa Signature® benefits like access to exclusive events and complimentary 24/7 concierge service

With unlimited 2% cash back on all purchases and no annual fee, this is a great card for everyday spending if you want simple, flat-rate rewards.

Capital One SavorOne Cash Rewards Credit Card

The Capital One SavorOne Cash Rewards Credit Card offers exceptional earnings potential on dining, entertainment, and popular streaming services. You’ll earn unlimited 3% cash back on dining, entertainment, select streaming services, and at grocery stores (excluding superstores). All other purchases earn 1% cash back.

Key perks include:

• 8% cash back on tickets from Vivid Seats through May 2023
• 5% cash back on hotels and rental cars booked through Capital One Travel
• $200 cash bonus after spending $500 in the first 3 months
• 0% intro APR for 15 months on purchases and balance transfers (then 19.99% – 29.99% Variable APR)

With generous bonus categories on everyday spending as well as entertainment, this is an excellent no annual fee card for maximizing rewards on fun experiences and dining.

Discover it® Cash Back

The Discover it® Cash Back card provides an opportunity to earn 5% cash back in rotating quarterly categories when activated. Categories include grocery stores, gas stations, restaurants, Amazon.com, and more. All other purchases earn 1% cash back.

Additional benefits:

• Discover will match all the cash back you’ve earned at the end of your first year for new cardholders
• 0% intro APR for 15 months on purchases and balance transfers (then 13.99% – 24.99% Variable APR)
• No foreign transaction fees

If you want a no annual fee cash back card that offers bonus rewards in spending categories that shift throughout the year, the Discover it® Cash Back card is an excellent choice. Just remember to activate your 5% categories each quarter.

Citi Custom Cash® Card

The Citi Custom Cash® Card takes the guesswork out of earning the most rewards. You’ll automatically earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent. All other purchases earn 1% cash back.

Additional Citi Custom Cash® Card benefits:

• $200 cash bonus after spending $750 in purchases within the first 3 months
• 0% intro APR for 15 months on purchases and balance transfers (then 19.24% – 29.24% Variable APR)
• No foreign transaction fees

With no need to activate rotating bonus categories, this card provides effortless earnings on your top spending category from month to month. The custom 5% cash back optimization makes it one of the best no annual fee credit cards.

Bank of America® Travel Rewards credit card

For a basic travel rewards credit card with no annual fee, the Bank of America® Travel Rewards credit card is a solid option. You’ll earn 1.5 points per $1 on all purchases, with no limit on the rewards you can accrue. New cardholders can earn 25,000 bonus points by spending $1,000 in the first 90 days.

Points can be redeemed for statement credits toward airline ticket, hotel, car rental, or baggage fee purchases. Other benefits include:

• No foreign transaction fees
• 0% intro APR for the first 15 billing cycles (then 18.24% – 28.24% Variable APR)

This straightforward card makes a good starter travel rewards card for occasional travelers who want simple earnings and redemptions with no annual fee.

U.S Bank AltitudeTM Go Visa Signature® Card

One of the best no annual fee travel rewards cards available, the U.S. Bank AltitudeTM Go Visa Signature® Card offers 4x points on dining, takeout, food delivery, streaming services, and gas. All other purchases earn 1 point per $1.

Key features and benefits:

• $15 annual streaming service statement credit
• 0% intro APR for 12 months on balance transfers (then 18.24% – 28.24% Variable APR)
• Up to $1,200 in annual cell phone protection

With generous bonus categories for everyday spending, this is an excellent card for earning rewards quickly through your routine purchases.

Chase Freedom Unlimited®

Chase Freedom Unlimited® earns 5% cash back on travel booked through Chase Ultimate Rewards®, 3% at restaurants and drugstores, and 1.5% on all other purchases. There’s also currently a limited time offer to earn 5% cash back on gas for the first $6,000 spent through September 2023.

Additional highlights include:

• $200 cash bonus after spending $500 within the first 3 months of account opening
• 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers

With broad 3% and 5% bonus categories, this card provides an easy way to maximize rewards for both everyday and travel spending with no annual fee.

Wells Fargo AutographSM Card

The Wells Fargo AutographSM Card earns 3X points in top spending categories including travel, gas, transit, phone plans, streaming services, and dining. Plus, cell phone protection is a valuable perk, providing up to $600 coverage per claim, subject to a $25 deductible.

Other key details:

• 20,000 bonus points (worth $200 in rewards) after spending $1,000 in the first 3 months
• 0% intro APR for 12 months on purchases (then 18.24% to 28.24% Variable APR)
• No annual fee and no foreign transaction fees

With a great mix of bonus categories tailored to everyday needs, this is an excellent no annual fee card for earning rewards on purchases in useful spending categories.

Chase Freedom Student® credit card

For students seeking a starter card to build credit, the Chase Freedom Student® credit card is a top pick. It provides 1% cash back on all purchases with no limit on rewards earnings. Benefits targeted at students include:

• 0% APR for 15 months on purchases after account opening
• No annual fee
• Reward redemption starts at just 2,500 points earned

With responsible use, this card can help students create positive credit behaviors while earning a bit of cash back on their spending.

Capital One Platinum Secured Credit Card

As a top secured card requiring a refundable security deposit, the Capital One Platinum Secured Credit Card reports to the major credit bureaus and provides an opportunity to build or rebuild your credit. After making your first five monthly payments on time, you may qualify for a higher credit line.

Additional features:

• No annual fee or minimum security deposit required
• Potential credit line increase after making first 5 monthly payments on time

For those needing to establish a credit history, this can be an ideal secured card option with the potential to graduate to an unsecured line.

To Recap

A no annual fee credit card can provide an affordable path to valuable credit card rewards and benefits. While premium credit cards with annual fees unlock more perks, there are many outstanding no annual fee options with solid earnings potential. By evaluating spending categories, point values, and perks, you can find a card that matches your habits and needs.

Responsible use of a no annual fee credit card presents little downside risk. There’s no annual cost to justify, and you can supplement your everyday spending rewards with a premium card. Just be sure to pay your balance on time and in full each month. With a little research, a no annual fee credit card can pay big dividends through rewards and improved credit health.

FAQs About No Annual Fee Credit Cards

Can you get a no annual fee credit card with bad credit?

It is possible to get a credit card with no annual fee if you have bad credit, but your options are more limited. Many popular no annual fee rewards cards require good to excellent credit (scores above 670). However, there are secured credit cards designed for credit building that do not charge annual fees. These require a refundable security deposit and help establish a positive payment history.

Should I avoid cards with annual fees?

Not necessarily. For certain credit card spending profiles, a card with an annual fee can provide enough rewards value and perks to offset the annual cost and provide a net gain in benefits. An annual fee is only worth it if you will use the card enough to get more value than the fee amount. However, a no annual fee credit card is typically a safer choice if you aren’t sure you can maximize a premium card.

What’s the best way to use a no annual fee card?

The best practice is to pay your statement balance in full by the due date each month to avoid interest charges. You can maximize rewards earnings on your no annual fee card by using it frequently for purchases in bonus categories with boosted earnings rates. Popular categories of spending include gas, groceries, dining, travel, etc. Using it responsibly and paying on time will also help build your credit.

Should I cancel old credit cards I no longer use?

It’s generally recommended to keep old credit cards open, including no annual fee cards you no longer use often. As long as there is no annual fee, keeping unused cards open maintains your available credit limit and the length of your credit history, two factors in your credit score calculation. However, you can change an old card with a fee to a no annual fee version to avoid canceling.

How do I know which no annual fee card is right for me?

The best no annual fee credit card depends on your credit profile and spending habits. Compare cards with bonus rewards categories that match categories where you spend the most. Opt for a simple flat-rate card if you want to keep earning rewards straightforward. Seek out cards with 0% intro APRs on purchases or balance transfers if you plan to carry a balance temporarily.

Should I pair a no annual fee card with a premium rewards card?

Yes, combining a no annual fee cashback or travel rewards card with a premium card that charges an annual fee can optimize your spending rewards. The no annual fee card earns rewards on purchases that may not fall into bonus categories on your premium card. This card pairing strategy helps ensure you maximize overall earnings.

In another related article, Best 0% Interest Credit Cards with 0% Intro APR Period Until 2025