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Best credit cards with no annual fee in December 2023

Updated December 05, 2023

Though credit cards with annual fees can be worth it, cardholders may sometimes struggle to maximize usage to outweigh the cost. If you're uncomfortable with a yearly fee or use your credit card only occasionally, a no-annual-fee card is a smart choice.

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BEST FLAT-RATE CASH REWARDS CARD
Rating: 4.3 stars out of 5
4.3
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Apply now Lock
on Wells Fargo's secure site

Good to Excellent (670 – 850)
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Recommended Credit
chance of approval
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Intro offer

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2%

Rewards rate

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Annual fee

Regular APR

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Best for dining & entertainment
Rating: 5 stars out of 5
5.0
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Apply now Lock
on Capital One's secure site

Good to Excellent (670 – 850)
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Recommended Credit
chance of approval
Info

Intro offer

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1% - 8%

Rewards rate

Info

Annual fee

Regular APR

Best for agile spenders
Rating: 4.4 stars out of 5
4.4
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Apply now Lock
on Discover's secure site
Good to Excellent (670 – 850)
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Recommended Credit

Intro offer

Info

1% - 5%

Rewards rate

Info

Annual fee

Regular APR

Info
Best overall cash back card with no annual fee
Rating: 3.8 stars out of 5
3.8
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Apply now Lock
on Capital One's secure site

Good to Excellent (670 – 850)
Info
Recommended Credit
chance of approval
Info

Intro offer

Info

1.5% - 5%

Rewards rate

Info

Annual fee

Regular APR

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Best for cash back after intro APR
Rating: 4.2 stars out of 5
4.2
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Apply now Lock
on Citi's secure site

Good to Excellent (670 – 850)
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Recommended Credit
chance of approval
Info

Intro offer

Info

1% - 5%

Rewards rate

Info

Annual fee

Regular APR

Best for everyday local travel
Rating: 4.2 stars out of 5
4.2
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Apply now Lock
on Wells Fargo's secure site
Good to Excellent (670 – 850)
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Recommended Credit

Intro offer

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$300

Offer valuation

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1X - 3X

Rewards rate

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Annual fee

Regular APR

Best for occasional travelers
Rating: 4.1 stars out of 5
4.1
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Apply now Lock
on Capital One's secure site
Good to Excellent (670 – 850)
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Recommended Credit

Intro offer

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$340

Offer valuation

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1.25 Miles - 5 Miles

Rewards rate

Info

Annual fee

Regular APR

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Best for hands-off earning
Rating: 4.4 stars out of 5
4.4
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Apply now Lock
on Citi's secure site

Good to Excellent (670 – 850)
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Recommended Credit
chance of approval
Info

Intro offer

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1% - 5%

Rewards rate

Info

Annual fee

Regular APR

BEST FOR RENTERS
Rating: 4 stars out of 5
4.0
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Apply now Lock
on Wells Fargo's secure site
Good to Excellent (670 – 850)
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Recommended Credit

N/A

Intro offer

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N/A

Offer valuation

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1X Points - 3X Points

Rewards rate

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Annual fee

Regular APR

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Best for credit builders
Rating: 4.2 stars out of 5
4.2
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Apply now Lock
on Capital One's secure site

Fair to Good (580 – 740)
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Recommended Credit
chance of approval
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N/A

Intro offer

Info

Annual fee

Regular APR

Compare the best credit cards with no annual fee

Card name Our pick for Bankrate review score

Flat-rate cash rewards card

Apply now Lock
on Wells Fargo's secure site

4.3 / 5

Info

(Read card review)

Dining & entertainment
Apply now Lock
on Capital One's secure site

5.0 / 5

Info

(Read card review)

Agile spenders

Apply now Lock
on Discover's secure site

4.4 / 5

Info

(Read card review)

Overall cash back card with no annual fee

Apply now Lock
on Capital One's secure site

3.8 / 5

Info

(Read card review)

Cash back after intro APR

Apply now Lock
on Citi's secure site

4.2 / 5

Info

(Read card review)

Everyday local travel

Apply now Lock
on Wells Fargo's secure site

4.2 / 5

Info

(Read card review)

Occasional travelers

Apply now Lock
on Capital One's secure site

4.1 / 5

Info

(Read card review)

Hands-off earning

Apply now Lock
on Citi's secure site

4.4 / 5

Info

(Read card review)

Renters

Apply now Lock
on Wells Fargo's secure site

4.0 / 5

Info

(Read card review)

Credit builders

Apply now Lock
on Capital One's secure site

4.2 / 5

Info

(Read card review)

A closer look at the best no-annual-fee credit cards

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Wells Fargo Active Cash® Card

Best card for flat-rate cash rewards

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The sign-up bonus and unlimited 2 percent cash rewards on purchases alone make this a standout flat-rate credit card. Its intro APR period on purchases and qualifying balance transfers adds even more value.

Anyone looking for a well-rounded flat-rate cash rewards credit card with no annual fee and plenty of perks.

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.

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Capital One SavorOne Cash Rewards Credit Card

Best card for dining and entertainment

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This well-rounded card has the potential to be very lucrative for anyone seeking fun experiences and memorable nights out because it rewards both everyday and entertainment purchases at a decent rate. Concerts, movies, sporting events, theme parks and tourist attractions are all included in Capital One’s entertainment bonus category.

People who enjoy dining out and entertainment lovers could get the most value on purchases.

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, matching all the cashback you earn at the end of your first year.

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Discover it® Cash Back

Best for agile spenders

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Spending in Discover’s rotating cash back categories gets you 5 percent cash back on up to $1,500 each quarter after activation (then 1%), and you could essentially 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).

Someone who wants to cash in on a variety of seasonal expenses.

Flat-rate cash rewards cards such as the Wells Fargo Active Cash® Card may be better for people who prefer a simple rewards structure.

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Capital One Quicksilver Cash Rewards Credit Card

Best overall cash back card with no annual fee

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With noteworthy perks and a decent rewards rate, this card offers several travel and shopping protections, including emergency card replacement and fraud coverage for unauthorized charges. You can also benefit from an unlimited flat-rate on all purchases and boosted cash back on hotel and rental cars booked through the issuer’s travel portal.

Cash back first-timers seeking a simple no-annual-fee card (See Rates and Fees).

For people who'd rather focus their spending on a few categories, the Bank of America® Customized Cash Rewards credit card could provide higher cash back earning potential overall.

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Citi Double Cash® Card

Best for cash back after intro APR

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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. Its unique rewards system lets you earn 1 percent cash back when you buy and another 1 percent when you pay.

People who want a flat-rate cash back card with no annual fee.

The Chase Freedom Unlimited® Card might be a better choice for those looking for a more lucrative cash back rewards.

Read our full Citi Double Cash Card review or jump back to offer details

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Wells Fargo Autograph℠ Card

Best for everyday local travel

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This rewards card gives you plenty of places to earn points due to its variety of spending categories.

Credit card newbies and minimalists alike who want a straightforward rewards plan without the hassle of tracking rotating categories and value affordability.

The one key spending category missing from the Wells Fargo Autograph is groceries or supermarket purchases. Although it’s a great card for travel, dining, streaming and gas, it lacks everyday categories that you can find on a card like The Blue Cash Everyday® Card from American Express.

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Capital One VentureOne Rewards Credit Card

Best card for new travelers

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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.

People who are occasional or beginner travelers.

If you are a frequent traveler looking to maximize your rewards earnings and don’t mind paying a few hundred dollars for an annual fee, you may prefer the Chase Sapphire Reserve®.

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Citi Custom Cash® Card

Best for hands-off earning

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The bonus category automatically shifts to match your top eligible purchase category each billing cycle and the card touts 5 percent cash back in 1 of 10 bonus categories — one of the highest cash back rates for a card with no annual fee.

Someone who wants to earn a high cash back rate without being limited to one or two category options.

If you want to earn rewards in multiple categories, you may be better off with the variety of rotating categories offered by the Chase Freedom Flex℠.

Read our full Citi Custom Cash Card review or jump back to offer details.

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Bilt Mastercard®

Best for renters

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Along with its savings on rent payments, this card offers high-value flexible travel rewards for a no-annual-fee card. You’ll typically need to pay an annual fee of at least $95 to access such an extensive list of high-value airline and hotel transfer partners.

Renters who plan to redeem their rewards for travel, especially those who already have a card that earns rewards on everyday purchases like groceries and gas.

If you don’t see yourself renting long term, but still want to earn rewards on travel and dining, a flexible no-annual-fee travel card like the Wells Fargo Autograph card could be a better fit. Though its rewards aren’t as valuable as the Bilt card’s, the Autograph card offers a wider range of everyday bonus categories, including travel, transit, restaurants, gas and more. You can also redeem for both cash back and travel at a flat 1:1 value.

Read our full Bilt Mastercard review or jump back to offer details.

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Capital One Platinum Credit Card

Best card for credit builders

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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 (See Rates and Fees). Capital One will review your account to determine your eligibility for a higher credit limit after six months.

Someone with fair to good credit trying to improve their score.

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.

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Chase Freedom Flex℠

Best no-annual-fee card for multifaceted spenders

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The Freedom Flex features bonus categories that rotate each quarter, giving cardholders plenty of variety.

Someone who wants to earn rewards in several purchase categories.

For those looking for cards with unique rewards categories, the Bilt Mastercard may be just what you need. With this card, you can earn 1X points on rent (up to 50,000 points per year) with no processing or transaction fees. (Earn points when you make 5 transactions that are posted each statement period.)

What to know about no-annual-fee cards

A no-annual-fee credit card gives cardholders an opportunity to earn rewards and use perks without charging a yearly fee to keep. If you're searching for a credit card, you’ve probably noticed that some charge an annual fee but make up for it with lucrative rewards and perks. In many cases, you’ll still get the same long-term value from a credit card without an annual fee.

Pros and cons of no-annual-fee credit cards

No-annual-fee credit cards are one of the more forgiving credit card options available since there’s no penalty for not using it regularly. With that said, there are a few potential downsides to consider. 

Pros

  • Checkmark

    A low-cost method to build up your credit: Your credit card activity will be reported to the credit bureaus each month. Responsible use — like paying down your balances and making payments on time — will help you to build up a positive credit history at no extra cost.

  • Checkmark

    Affordability with rewards opportunity: You don’t have to pay a premium to get rewards or useful benefits with the best no-annual-fee credit cards.

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    No planning to cover the cost of an annual fee: If your card carries an annual fee, you have to justify the cost through heavy spending or benefits usage. A no-annual-fee card takes away this worry.

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 ensure it fits your budget.

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Bankrate Insight

A no-annual-fee card can be a great choice for those who don’t want to deal with card category bonuses. For some cards, the best way to maximize their rewards is to stick to specific categories and spend as much as you can using that card. However, some consumers may want a more laid-back approach without sacrificing too many rewards, in which case a no-annual-fee card can fit that niche.

A no-annual-fee card is a good idea for…

Just about anyone can benefit from the right no-annual-fee credit card. If you want one, consider how you might use the card, your typical spending habits and overall financial priorities. A credit card with no annual fee may be right for you if you fit any of the following consumer types:

  • If you’re new to the world of credit cards, a card with no annual fee might be the right choice while you gain more experience. 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 simplify your budget, which can be a welcome relief for anyone building or rebuilding their credit. There are several 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. For debt managers, these cards can provide a temporary interest-free window to pay for a large purchase or a balance transferred from a different credit account.
  • Experienced cardholders 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 a premier travel card with an everyday cash back card, can round out your credit portfolio.

A no-annual-fee card is not ideal for… 

With some card types, having an annual fee is just unavoidable. A credit card without an annual fee may not be right for you if you fit any of the following consumer types:

  • If you're an avid luxury card seeker, a no-annual-fee card may disappoint you, since they often come with fewer features than their annual-fee counterparts. With the latter, you may be able to get rewards that offset the annual fee as well as premium benefits like concierge service, travel insurance, or even airport lounge access (which may not be offered by no-annual fee cards).
  • If you're a rewards maximizer, you may discover that cards with annual fees have higher reward rates or more variable spending categories compared to no-annual-fee cards, so picking an annual fee card may be more advantageous.

Still unsure if a no-annual-fee 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.

Tips on choosing the best no-annual-fee card for you

There are plenty of cards on the market that don't charge an annual fee but still offer some notable perks. To choose the best no-annual-fee credit card for your needs, you’ll want to do the following: 

  • Understand your spending habits. Recognizing 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 reward rates for spending in certain categories. 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.
  • Narrow down your preferred rewards structure. Some cards may offer higher reward 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 from your card in terms of rewards.
  • Determine whether the card rewards are worth it. Keep in mind that cards with an annual fee usually come with more desirable perks. If you’re still uncomfortable with an annual fee or you simply feel that the rewards associated with a no-annual-fee card fit with your lifestyle, sticking to a card without that extra cost could be your best bet.
  • Think about whether perks are important to you. Just as reward rates tend to be more lucrative on cards with an annual fee, additional perks are typically more valuable and numerous on such cards. If you’re interested in unique card perks like travel benefits or statement credits, you’ll want to compare annual fee cards as well. 
  • Figure out your payment strategy. Is there a chance you’ll need to carry a balance? If so, choose a card with an intro APR offer. While you should always plan to pay your bill in full each month, an intro APR offer can be helpful to finance a big purchase. Just be sure to pay your balance off before the intro period ends. If you may need to carry a debt for a longer period of time, consider a line of credit or personal loan, which generally have lower interest rates than credit cards.  

How a Bankrate editor chose his no-annual-fee card

Bankrate editor Steve Dashiell chose a no-annual-fee card with rotating reward categories to help him keep an eye on his spending:

“Having crashed and burned on my first attempt at using a credit card, I needed my second attempt to keep things simple. But at the same time, I also wanted some extra depth. My thought was pretty simple: I can set up the card to pay off my balance in full at the end of each statement period so that it effectively runs itself. But once I felt comfortable managing the card, I could lean into some extra card features to take advantage of any perks or rewards.

The Chase Freedom — now the Chase Freedom Flex — came highly recommended by a friend of mine, and it was easy to see why. The card’s rotating reward categories offer an extra incentive to monitor and plan out your spending, something I wasn’t great at doing. And even if I didn’t feel like chasing a quarter’s categories, I could still earn a reliable 1 percent cash back on all other purchases.

During my research, I also learned about the Chase Trifecta, which was just the type of value ‘expansion’ I was hoping for in the event everything went well with my credit card revenge arc. The fact that the card offered so much potential for no annual fee (along with a recommendation from a friend) made choosing the card a no-brainer.”

— Steve Dashiell— Bankrate editor

 

Expert advice for no-annual-fee cards

When to downgrade to a no-annual-fee card

Not all credit cards with annual fees have the long-term value you may need. However, instead of canceling your card and taking a hit on your credit score, you can downgrade to a no-annual-fee card.

When you downgrade, your credit score is unaffected as it maintains your credit utilization and age of your account while also avoiding a hard pull. However, there are a few cons to this choice, such as opting out of potential bonuses on the new card. You’ll also want to use all of your rewards on your current card, as some issuers may not allow those points to transfer to the new card. 

Are no-annual-fee credit cards worth it?

It’s rarely a mistake to open a no-annual-fee credit card, though there are times when an annual fee is justified. Often, cards with annual fees include perks that match the price such as higher welcome bonuses, higher rewards rates, and travel perks. In fact, according to the Consumer Finance Protection Bureau’s most recent data, annual fees are one of the biggest areas of increased costs on credit cards within the last few years, likely tied to issuers competing for new cardholders by introducing bigger and better perks to their card lineup.

Depending on the worth of points or miles on the card, these additional perks and features can greatly benefit big spenders or those looking to be rewarded from large purchases. 

However, these perks are only great if you use them. If you’re less involved with your card or the perks don’t fit your lifestyle, it becomes an extra bill. For example, suppose you are a frequent traveler. In that case, upgrading to the Capital One Venture Rewards Credit Card from the Capital One VentureOne may be worth it when considering the additional benefits like TSA Precheck or Global Entry credits and lost luggage reimbursement. If you travel throughout the year, these perks can be enough to justify the cost. However, if you’re looking strictly at miles earned on travel, there’s a gap in value.

In the table below, we calculate how much rewards value you can earn when booking eligible travel with the no-annual-fee VentureOne versus the premium Capital One Venture Rewards Credit Card based on your travel spending and Bankrate’s latest reward valuations — about 1.7 cents per Capital One mile on average with the right transfer partner.

Card Annual fee Miles earned with $1,500 spend Value minus annual fee Miles earned with $3,000 spend Value minus annual fee
Capital One 

VentureOne

(See Rates and Fees)

$0 7,500 $127 15,000 $255

Capital One Venture

(See Rates and Fees)

$95 7,500 $32 15,000 $160
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Bankrate Insight

While a no-annual-fee card can include hidden fees like cash advance fees and foreign transaction fees, it could be a good option for avoiding late fees. Because no-annual-fee cards tend to be geared towards people who prefer low-cost rewards, some cards exclude the fee altogether or forgive the first late payment.

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 pairing it with a card that charges an annual fee but earns more rewards. 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® for travel rewards, can round out your earnings.
  • 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.

How we assess the best no-annual-fee cards

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250+
cards rated
Rewards
50+
rewards programs valued
Search
5000
data points analyzed
Congrats
40+
perks evaluated

When evaluating the best credit cards with no annual fee, we take into account several factors, including how cards score in our proprietary card rating system and whether they offer features that fit the priorities of a diverse group of cardholders, from earning rewards to scoring a large sign-up bonus to saving on interest. 

We analyzed over 250 of the most popular credit cards and selected standouts that carry no annual fee. We scored each card based on the factors most relevant to its primary category, including its rewards rate, estimated annual earnings, intro APR period, ongoing APR, perks and more to determine whether it belonged in this month’s roundup. 

Here are some of the key factors that we considered:  

Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply

Ask the experts

We’ve asked a few personal finance experts about the best perks you should look for on a no-annual-fee credit card.

Many credit cards that do not charge annual fees also have great perks. Just a few examples: 

  • 0 percent APR. If you're looking for a card where no interest will be applied for a fixed amount of months, you’re in luck. There are plenty of 0 percent APR cards on the market, such as Chase Freedom Unlimited®, that offer a lengthy intro APR period after opening the account.
  • Cell phone protection. Wells Fargo Active Cash® Card doesn't charge an annual fee and has cell phone protection, which will reimburse you for the cost to repair or replace your phone in case it's damaged or stolen. Although cracked screens and cosmetic damages are not covered, it can definitely give you peace of mind at no cost.
  • Free credit score. If you want to keep track of your credit score, the Citi® Diamond Preferred® Card offers free FICO Score access. 

So it really depends on what you’re looking for! Each card has a different set of benefits.

— Erica Sandberg, personal Finance expert

No-annual-fee cards can still have a variety of perks and rewards. The best perks are ones you will actually use, so choose a card with a rewards program that offers the best rewards on the types of spending that you do the most. Other perks, like purchase protection and insurance coverages, are also included on no-fee cards. Overall, be sure to take the time to review all the details and select the one that makes the most sense to you.

— Thomas Nitzsche, personal finance expert

For any card you consider, you’ll want to look for benefits that match your spending style. For cards that have no annual fee, every benefit that you can take advantage of is a gain (since you don't have any fees to offset). Start by looking for options that offer a sign up bonus. If you want to keep your earning simple, look for a high flat rate of cash back earning (like the Citi Double Cash). If you really want to really max out your earning and are willing to take the time to track rotating categories, choose a card where you’ll really be able to leverage the higher bonus earning (like the Chase Freedom Flex).

— Stephanie Zito, personal finance expert

 

Frequently asked questions about no-annual-fee credit cards