Best credit cards with no annual fee in December 2023

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.

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. 

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.

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.  

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

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.

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.

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

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