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Though credit cards with annual fees can be worth it, you don’t have to pay an annual fee 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 2021 from our partners.
Best No Annual Fee Credit Cards for December 2021:
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
5%
5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.
5%
5% on travel purchased through Chase Ultimate Rewards®.
3%
3% cash back on dining at restaurants, including takeout and eligible delivery services and on drugstore purchases.
1.5%
Unlimited 1.5% cash back on all other purchases.
Intro bonus
$200
$200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
Annual fee
$0
Regular APR
14.99% - 24.74% Variable
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The Chase Freedom Unlimited® is more than just a cash back card. The wide range of redemption options, including the ability to redeem for travel through the Chase Ultimate Rewards® portal, makes it more of a multi-purpose rewards card. With no annual fee, it’s also an economical choice.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
2%
Earn unlimited 2% cash rewards on purchases
Intro bonus
$200 cash rewards
Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
Annual fee
$0
Regular APR
14.99%-24.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
If you could only have one credit card in your wallet, the Wells Fargo Active Cash℠ Card makes the case for why it should be the one. On top of a flat rate of 2 percent cash rewards and no annual fee, this card comes with plenty of perks. These include an intro APR on both balance transfers and purchases, cellphone protection and select Visa Signature privileges.
Earn unlimited 2 percent cash rewards, which will not expire as long as you keep your account open.
On top of a $200 cash rewards sign-up bonus (after spending $1,000 in purchases in the first three months), cardmembers with a large purchase to make or debt to pay down will enjoy the 0 percent intro APR offer for 15 months on purchases from account opening and qualifying balance transfers from account opening (then 14.99% to 24.99% variable APR).
Cons
You have to be a Wells Fargo customer to enjoy some of the best redemption perks, such as withdrawing your cash rewards at an ATM or having your rewards deposited in a checking account.
There is a 3 percent foreign transaction fee, which will be disappointing to people who enjoy traveling abroad.
Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
Earn unlimited 2% cash rewards on purchases
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 14.99% to 24.99% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5
$0 annual fee
No category restrictions or sign ups and cash rewards don't expire as long as your account remains open
Enjoy a premium collection of benefits at a selection of the world's most intriguing and prestigious hotel properties with Visa Signature Concierge
Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Active Cash℠ Card
Select "Apply Now" to learn more about the product features, terms and conditions
additional features
Purchase intro APR
0% intro APR for 15 months from account opening
Balance transfer intro APR
0% intro APR for 15 months from account opening on qualifying balance transfers
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
1.5%
Earn unlimited 1.5% cash back on every purchase, every day
Intro bonus
$200
One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
Annual fee
$0
Regular APR
14.99% - 24.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The Capital One Quicksilver Cash Rewards Credit Card checks many of the boxes for a great cash back card: a straightforward rewards program, no annual fee, an easily attainable sign-up bonus and more. These qualities help make the Quicksilver a reliable source of cash back rewards and a potentially valuable addition to your wallet.
Your rewards don’t expire for the life of the account and there are many redemption options, including statement credits, checks, gift cards and more.
This card is a good option for financing large purchases with its 0 percent intro APR on purchases for the first 15 months (then 14.99 percent to 24.99 percent variable APR).
Cons
You can earn more rewards with other flat-rate or bonus category cash back credit cards.
The barrier of entry for this card may be a bit high, with a credit score recommendation of 670 or higher.
One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
Earn unlimited 1.5% cash back on every purchase, every day
No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn
0% intro APR on purchases and balance transfers for 15 months; 14.99%-24.99% variable APR after that
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards 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 bonus
Cashback Match™
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.
Annual fee
$0
Regular APR
11.99% - 22.99% Variable
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Here's a rare opportunity to put the three C's to work for you: categories, calendar and cash back. Plan your spending around Discover's cash back calendar to maximize your cash back earnings in categories like wholesale clubs, restaurants, gas stations, grocery stores and more. The cash back potential is huge, and the annual fee is $0.
Discover offers a number of consumer-friendly card terms, including no annual fee and no foreign transaction fees.
You can redeem the rewards you earn at any time, no minimum required.
Cons
You must enroll to activate the spending category benefits each quarter.
There’s a spending cap each quarter for the 5 percent cash back (up to $1,500, then 1%, enrollment required).
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.
Redeem cash back in any amount, any time. Rewards never expire.
Use your rewards at Amazon.com checkout.
No annual fee.
Discover is accepted nationwide by 99% of the places that take credit cards.
Click "Apply Now" to see rewards, FICO® Credit Score terms, Cashback Match™ details & other information.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
5%
Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter.
1%
Earn unlimited 1% cash back on all other purchases.
Intro bonus
$200
Earn $200 in cash back after you spend $750 on purchases in the first 3 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Annual fee
$0
Regular APR
13.99% – 23.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
If you’ve been hesitant to commit to a few cash back categories, the Citi Custom Cash℠ Card offers a unique and lucrative solution. You’ll automatically earn bonus cash back in your top spending category each month and you won’t have to worry about strategic spending to maximize rewards.
The eligible bonus categories include everyday expenses, like gas stations and grocery stores.
You can redeem points for a few different options, like checks, statement credits and travel.
Cons
Your bonus category cash back is subject to a cap (up to $500 each billing cycle, then 1 percent).
There’s a high balance transfer fee with this card of 5 percent of the transferred balance or $5 (whichever is greater).
Earn $200 in cash back after you spend $750 on purchases in the first 3 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will be 13.99% - 23.99%, based on your creditworthiness.
Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases.
No rotating bonus categories to sign up for – as your spending changes each billing cycle, your earn adjusts automatically when you spend in any of the eligible categories.
No Annual Fee
Citi will only issue one Citi Custom Cash℠ Card account per person.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
5%
5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.
5%
5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
5%
5% cash back on travel purchased through Chase Ultimate Rewards®.
3%
3% cash back on dining at restaurants, including takeout and eligible delivery services and on drugstore purchases
1%
1% on all other purchases.
Intro bonus
$200
Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
Annual fee
$0
Regular APR
14.99% - 24.74% Variable
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Many credit cards don’t charge an annual fee, but few of those no-annual-fee cards have the cash back earning potential of the Chase Freedom Flex℠. The card features exceptional cash back rates in a variety of spending categories, from travel to restaurants to drugstore purchases.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
3%
3% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%).
2%
2% Cash Back at U.S. gas stations and at select U.S. department stores.
1%
1% Cash Back on other purchases.
Intro bonus
$200
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
Annual fee
$0
Regular APR
13.99%-23.99% Variable
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The Blue Cash Everyday® Card from American Express offers great cash back rates on categories we all use every day. This card may work especially well for busy families who may have high expense costs to cover at U.S. supermarkets and U.S. gas stations. If working out points and miles isn’t your thing, that’s another plus.
There are a few ancillary benefits that come with this card, including car rental insurance, travel assistance, and purchase protections.
You won’t need to keep track of rotating spend categories or enrollment periods.
Cons
Popular superstores, like Target and Walmart, do not count as U.S. supermarkets and will not earn bonus rewards.
Your 3 percent bonus rewards are subject to a cap ($6,000 in purchases per year, then 1%).
Earn a $200 statement credit after you spend $2,000 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 15 months after account opening. Plans created after that will have a 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% for 15 months on purchases from the date of account opening, then a variable rate, 13.99% to 23.99%.
3% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%).
2% Cash Back at U.S. gas stations and at select U.S. department stores.
1% Cash Back on other purchases.
Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
8%
Earn 8% cash back on tickets at Vivid Seats through January 2023.
3%
Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®).
1%
Earn 1% on all other purchases.
Intro bonus
$200
Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening
Annual fee
$0
Regular APR
14.99% - 24.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The Capital One SavorOne Cash Rewards Credit Card helps you earn cash back on food and fun without paying an annual fee. And with a great cash back rate on both groceries and dining out, you don’t have to choose favorites. Earn 1% on all other purchases. Also, benefits include inside access to premium dining, entertainment and sports experiences.
There is a 15-month 0 percent intro APR for new purchases (then variable 14.99 percent to 24.99 percent).
Benefits include inside access to premium dining, entertainment and sports experiences.
Cons
Popular superstores like Target and Walmart are not included in the bonus rewards rate on grocery store purchases.
Amazon has a list of restricted items, such as digital music and eBooks, that you can’t redeem rewards on.
Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening
Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through January 2023
No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
0% intro APR on purchases and balance transfers for 15 months; 14.99% - 24.99% variable APR after that
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
N/A
Intro bonus
N/A
Annual fee
$0
Regular APR
26.99% (Variable)
Recommended credit
Fair to Good (580 - 740)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
This no-frills credit card is a good option for people with fair credit who can’t yet qualify for a rewards or zero-percent interest credit card. It’s also an option for folks who fear they might be enticed to overspend with a card that offers rewards.
You could feasibly qualify for this card with a FICO score as low as 580.
The card charges no annual fee and no foreign transaction fees.
Cons
There is no welcome offer or intro APR offers that come with this card.
The regular APR on this card is quite high at 26.99 percent variable.
Pay no annual fee
Be automatically considered for a higher credit line in as little as 6 months
Fraud coverage if your card is lost or stolen
Use online banking to access your account, even from your smartphone, with our mobile app
Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you're all set
Pay by check, online or at a local branch, all with no fee - and pick the monthly due date that works best for you
Get access to your account 24 hours a day, 7 days a week
Help build your credit through responsible use of a card like this
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards 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 bonus
N/A
Annual fee
$0
Regular APR
13.99% - 23.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
This card offers an attractive combination of low maintenance and high rewards potential. There’s currently no welcome offer, making it somewhat less competitive in the short term, but we think the long-term value is enough to make it worthwhile, all things considered.
Holding a Citi card affords you access to Citi entertainment perks, like access to presale tickets and other popular events.
There’s an 18-month 0 percent introductory APR on balance transfers (then variable 13.99 percent to 23.99 percent APR).
Cons
There is currently no welcome bonus with this card, unlike some of its direct competitors.
There is a 3 percent foreign transaction fee with this card, which may prove inconvenient for international travel.
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
To earn cash back, pay at least the minimum due on time.
Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% - 23.99%, 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).
The standard variable APR for Citi Flex Plan is 13.99% - 23.99% based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
5X
Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get our best prices on thousands of trip options
1.25X
Earn unlimited 1.25X miles on every purchase, every day.
Intro bonus
20,000 miles
Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel
Annual fee
$0
Regular APR
14.99% - 24.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
If you say “yes” to travel but “no” to annual fees, the Capital One VentureOne Rewards Credit Card might be the card you want to take on your next trip. With this card, every purchase puts you closer to rewards-funded travel. All this, with no annual fee.
Along with having no annual fee, this card also doesn’t charge foreign transaction fees.
There are multiple options to redeem your miles, including statement credits, gift cards, Amazon.com purchases and more.
Cons
None of the large U.S. airlines are included in the current list of partner airlines.
Redeeming miles for statement credits or gift cards can reduce mile value by up to 50 percent.
$0 annual fee and no foreign transaction fees
Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel
Earn unlimited 1.25X miles on every purchase, every day
Miles won't expire for the life of the account and there's no limit to how many you can earn
Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get our best prices on thousands of trip options
Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
Transfer your miles to your choice of 15+ travel loyalty programs
Enjoy 0% intro APR on purchases and balance transfers for 15 months; 14.99% - 24.99% variable APR after that
additional features
Purchase intro APR
0% intro on purchases for 15 months
Balance transfer intro APR
0% intro on balance transfers for 15 months
Bankrate helps you find the right no annual fee credit card
Choosing the best credit card with no annual fee means identifying the one that suits your lifestyle and spending habits. Depending on how often you use the card, the issuer’s yearly charge may or may not be worth the benefits.
The more you know…
Throughout 2020, many cardholders requested a fee waiver for items such as annual fees or late payment fees. Of those who asked for a waiver, 82% got some form of relief, according to Bankrate’s study.
Bankrate makes your search easier by taking a close look at the top cards available from our partners to see which no annual fee credit cards truly stand out. Our credit card experts also help you understand the ins and outs of getting the most out of your card every day.
A closer look at the best no annual fee credit cards
Chase Freedom Unlimited
Best rewards card with no annual fee
This card is a good fit for: Someone who can’t decide between a cash back and a travel credit card.
This card is not a great choice for: International travelers. Though you’ll earn a good rewards rate booking travel, this isn’t the best card to take along if you’re leaving the U.S. because of the 3 percent foreign transaction fee.
What makes this card unique? Not only can you 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. For that reason, this card is a great way to dip your toe into travel rewards without an exclusive commitment.
Is the Chase Freedom Unlimited worth it? The potential value of the Chase Freedom Unlimited is great, especially for a no annual fee card. Every purchase earns at least 1.5 percent cash back, which is a decent rate on its own. But your earning potential climbs even higher with the additional bonus categories. Flexible redemption options solidify the Chase Freedom Unlimited as an ultra-versatile rewards card.
This card is best for: Anyone looking for a well-rounded flat-rate cash rewards credit card with no annual fee and plenty of perks.
This card is not a great choice for: Rewards seekers looking to earn more than 2 percent back in select categories.
What makes this card unique? The Wells Fargo Active Cash℠ Card offers a straightforward 2 percent cash rewards rate on purchases without any strings attached like having to make on-time payments or join a credit union to qualify.
Is the Wells Fargo Active Cash℠ Card worth it? The sign-up bonus and unlimited 2 percent cash rewards alone make this a standout flat-rate credit card. But the Active Cash Card takes it to the next level with a lengthy intro APR offer, cellphone protection and premium benefits like 24/7 concierge service and access to hotel benefits courtesy of the Visa Signature Hotel Collection.
This card is a good fit for: Cash back first-timers seeking a simple no annual fee card.
This card is not a great choice for: Someone whose spending is concentrated in a few particular categories.
What makes this card unique? The Quicksilver offers several travel and shopping protections, including emergency card replacement, auto rental insurance coverage and fraud coverage. For a no annual fee card, this is a noteworthy set of perks.
Is the Capital One Quicksilver card worth it? Although credit cards with higher rewards rates and sign-up bonuses exist, the unlimited 1.5 percent cash back on all purchases can provide steady value, especially since there is no annual fee.
Best no annual fee card for rotating cash back categories
This card is a good fit for: Someone who wants to cash in on a variety of seasonal expenses.
This card is not a great choice for: Someone who prefers a simple rewards structure.
What makes this card unique?: This card offers 5 percent cash back (activation required) on up to $1,500 spent in quarterly rotating bonus categories, then 1 percent.
Is the Discover it® Cash Back worth it?: Discover’s cash back categories are usually quite valuable, with previous categories including restaurants, gas stations, grocery stores and Amazon.com. To put it in perspective, activating and maxing out each quarter’s bonus category would earn you $300 in cash back over the course of a year ($1,500 x .05 = $75 ; $75 x 4 = $300). And with Discover’s first-year cash back match, your earnings would essentially double to $600 for your first year, which is pretty phenomenal.
This card is a good fit for: Someone who wants to earn a high rate of cash back without being limited to one or two category options.
This card is not a great choice for: Earning rewards in multiple categories at the same time. While there are 10 eligible bonus categories, you only earn 5 percent cash back in one category per billing cycle — the one you spend the most within (on up to $500 per billing cycle, then 1 percent). If you 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.
What makes this card unique? The bonus category automatically shifts to match your spending.
Is the Citi Custom Cash Card worth it? With 10 eligible bonus categories and a cash back rate of 5 percent (on up to $500 per billing cycle, then 1 percent), it’s pretty remarkable that this card comes with no annual fee.
Best no annual fee card for cash back in multiple categories
This card is a good fit for: Someone who wants to earn rewards in several purchase categories.
This card is not a great choice for: Grocery shoppers looking for a go-to card. The Freedom Flex has featured grocery stores and wholesale clubs as a bonus category in the past, but people with a significant grocery bill each week will benefit more from a card that always rewards those purchases.
What makes this card unique? 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.
Is the Chase Freedom Flex worth it? The Freedom Flex has plenty of opportunities to earn cash back, which is what makes its potential value so high. If the bonus categories align with your budget, the card is worthwhile. And thanks to the sign-up bonus, new cardholders don’t have to wait long to rack up rewards. Spending just $500 on purchases within the first 3 months will earn you a $200 cash bonus.
This card is a good fit for: Someone seeking a low-maintenance cash back card to use on everyday essentials.
This card is not a great choice for: Target, Walmart or Sam’s Club loyalists, since these businesses do not qualify for the U.S. supermarkets cash back category.
What makes this card unique? Many cards offer cash back at U.S. supermarkets and U.S.gas stations, but the addition of 2 percent cash back at select U.S. department stores sets this card apart. It’s also another useful category for families.
Is the Blue Cash Everyday worth it? The simple, everyday bonus categories makes this card worthwhile, especially since it has no annual fee. Plus, it has a lucrative welcome bonus offer of a $200 statement credit after you spend $2,000 in purchases on your new card within the first six months of card membership.
Best no annual fee card for dining and entertainment
This card is a good fit for: Foodies and entertainment lovers.
This card is not a great choice for: Someone looking to redeem rewards for travel. Your redemption options are limited to statement credits, checks and gift cards.
What makes this card unique? If you want a card that rewards fun experiences, you’ll have a hard time finding a better option than the SavorOne. “Entertainment” may sound like a vague bonus category, but plenty of common experiences like concerts, movies, sporting events, theme parks and tourist attractions are included in Capital One’s entertainment bonus category.
Is the Capital One SavorOne worth it? With no annual fee, the SavorOne makes it easy to come out ahead. And since it rewards both everyday and entertainment purchases, it’s a well-rounded card for nearly anyone. Additionally, if you spend $500 within three months of opening your account, you’ll secure a $200 cash bonus.
Best no annual fee card for free credit monitoring
This card is a good fit for: Someone with fair to good credit trying to improve their score.
This card is not a great fit for: Rewards seekers, since you won’t earn cash back or points for your purchases.
What makes this card unique? This card has no annual fee and no foreign transaction fees, and your account will be automatically reviewed for a higher credit limit after six months. For a card available to consumers with less than ideal credit, this set of features is impressive.
Is the Capital One Platinum card worth it? The Capital One Platinum allows you to build credit with responsible use, even when your score isn’t at its best, and free credit monitoring makes it easier to track your journey. If your goal is to achieve a higher credit score while minimizing fees, this card is worth it. Just remember that you shouldn’t expect much else beyond the ability to build credit and a few extra perks.
This card is a good fit for: People who want a flat-rate, cash back card with no annual fee.
This card is not a great choice for: Anyone who wants a sign-up bonus.
What makes this card unique? The rewards system is both unique and valuable: Earn 1 percent cash back as you buy, 1 percent as you pay. It’s also an incentive to use your card responsibly.
Is the Citi Double Cash worth it? With no bonus categories or annual fee to worry about and a high rate of cash back, this card can be a valuable, stress-free addition to most wallets. If you spent and paid off $400 per month on your Citi Double Cash, you’d earn $96 in cash back annually ($400 x 12 = $4,800 ; $4,800 x 0.02 = $96).
This card is a good fit for: Occasional or beginner travelers.
This card is not a great choice for: Frequent travelers who want to maximize their rewards earnings.
What makes this card unique? 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. In the travel rewards world, the freedom to book your rewards based on your preferences is huge.
Is the Capital One VentureOne Rewards Credit Card worth it? The rewards rate isn’t the most competitive, but it is simple and unlimited. Because it doesn’t have an annual fee, you won’t have to stress about recouping that cost. The ease of earning and redeeming miles is also a huge perk, especially for people just getting started with travel rewards.
Some credit cards charge an annual fee, which is a charge to keep your account open and active. A no annual fee credit card doesn’t charge this type of fee.
You can think of an annual fee as payment for having access to special account benefits, such as:
For example, consider The Business Platinum Card® from American Express. The $595 annual fee (see rates and fees) might be a deal-breaker, but the tradeoff includes a higher rewards rate (5X points on flights and prepaid hotels through amextravel.com) than what most no annual fee cards offer.
At the same time, many credit cards offer rewards programs, travel perks and other items of real value without charging a yearly fee. A significant number of popular credit cards have no annual fee or offer to waive the fee for the first year. With any credit card, whether the benefits justify the expense of an annual fee depends on the individual cardholder.
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. As a bonus, you won’t have to worry about paying the fees associated with many credit cards.
Earn rewards, skip the fees — Cards with annual fees are typically associated with premium perks and higher-level rewards. Still, you don’t have to pay a premium to get rewards. Many no annual fee cards give cardholders a chance to earn cash back and offer generous sign-up bonuses.
No planning to cover the cost of an annual fee — If your card carries an annual fee, it’s wise to think about how you will afford that fee. Some strategies, such as using rewards points to recoup the cost of an annual fee, can be challenging to master for newbies. The good news is that with a no annual fee card, you don’t have to worry about covering this cost.
Cons
Sign-up bonuses — If the card has a sign-up bonus at all, it will typically be 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. You can earn cash rewards and sign-up bonuses, but you’ll likely miss out on premium benefits, like airport lounge access or certain shopping and travel protections.
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 and you’ll need to review a card’s full terms and conditions to make sure it fits with your financial goals and spending habits. . For example, if you’re looking for a card that makes an excellent travel companion, a card with a 3% foreign transaction fee may not work best for you, even if it doesn’t carry an annual fee.
Who should get a no annual fee credit card?
Just about anyone can benefit from the right no annual fee credit card. If you want to get one, consider how you might use the card, your typical spending habits and your 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 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. Being diligent about monthly payments should make it easier to upgrade to a higher-level card later on.
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. A number of cards designed for people with no credit history or bad credit don’t charge annual fees (although secured credit cards typically require a one-time security deposit).
Some no annual fee cards offer 0% 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.
A card with no annual fee doesn’t require big spending to offset that yearly expense, making it a simple and economical way to build credit and earn rewards.
Bankrate 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.
How to choose the best no annual fee card
There are plenty of cards on the market that do not charge an annual fee but still offer some notable perks. Here are a few key steps to take in order to choose a no annual fee card that’s best for you:
Step 1: Evaluate your spending habits
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.
Step 2: Compare benefits and rewards between cards
As you evaluate various no annual fee cards, it’s important to note that some cards may offer higher rewards rates than others, or offer specific kinds of rewards. Some cards may also offer specific kinds of rewards that vary for each card. For example, some cards may only offer rewards in the form of cash back while other cards may offer travel points and miles. Always be sure to know what exactly you’re looking to get out of your card in terms of rewards and benefits.
Step 3: Decide if the rewards compensate for not having an annual fee
Keep in mind that cards with an annual fee usually come with considerably more desirable perks like lounge access at airports, higher rewards rates and cash bonuses that can offset the cost of an annual fee. If you’ve done a thorough evaluation of your budget and spending habits and you think that you could take on an annual fee card, the cost could prove worthwhile. If you’re still uncomfortable with the idea of an annual fee, you’re just getting started on your credit card journey and want to limit extra hassle, 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.
Are credit cards with annual fees worth it?
No annual fee might seem like a no-brainer — who would want to pay a yearly fee when you don’t have to? However, there are times where an annual fee is justified.
Think of annual fees as paying a yearly subscription for premium benefits. If it fits your budget, an annual fee card often features better rewards rates, comprehensive travel perks or more generous sign-up bonuses.
Plenty of annual fee credit cards can pay for themselves — just be sure it’s affordable for you. To see if an annual fee card is truly worth it, estimate how much your typical yearly spending would earn you in rewards and consider the value of the card’s perks and benefits. Then compare this value to the card’s annual price tag. Big spenders, frequent travelers and small business owners in particular should do the math on whether an annual fee is worth the value.
Credit card beginners might have an easier time learning the basics with a no annual fee card. They’re also more likely to be in the early stages of their careers, with less room in their budgets to absorb the cost of an annual credit card fee. For some cardholders, the true value of credit cards lies in their convenience instead of their potential for rewards. Not everyone has the same interest in cash back or travel miles, or the willingness to balance them against an annual credit card fee. If stockpiling rewards doesn’t interest you, a no annual fee card is likely the better choice.
How we chose our top 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% to 2% back) while others have rotating spending categories that offer boosted rewards rates directly dependent on how you spend (typically between 2% and 5%, 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).
More information on credit cards with no annual fee
Here are some additional Bankrate resources on no annual fee credit cards:
Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.
The information about the Centurion Card from American Express has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
Frequently Asked Questions
The simplest explanation involves the relationship between cost and pricing. A card that offers higher rewards rates and more valuable perks will cost more to provide, so the provider typically charges a higher price.
In other cases, an annual fee compensates for the financial risk the issuer assumes by offering cards to consumers with below-average credit or a limited credit history.
Annual fees generally run from as low as $35 to as high as $700. To determine if paying any annual fee is worth it, there are more than a few things to take into account like if you can recoup or pay the cost every year.
In the end, the question of annual fee vs. no annual fee always comes down to trade-offs. Do you spend enough on rewards-earning purchases to justify the cost of the annual fee, or do you have more modest spending habits that make a no annual fee card the better choice?
No annual fee cards for bad credit are rare but not impossible to find. Cardholders with low credit scores pose a larger risk to lenders, so credit cards for bad credit often charge an annual fee to offset that liability. Your most likely option might be getting a secured credit card that doesn't charge an annual fee.
By definition, a secured card requires you to pay a security deposit that also serves as your credit limit. The good news is that the deposit is refundable as long as you continue to pay your balance on time and in full, making the deposit a one-time expense rather than an annual fee.
Examples of secured credit cards with no annual fee include:
Some secured and unsecured credit cards for people with lower credit scores have annual fees that vary based on where your credit score falls within a certain range. If your FICO Score is in the very poor range (300-579) but approaching the fair range (580-669), your annual fee could be lower.
Overall, though, improving your credit score is the key to qualifying for a credit card that doesn't require an annual fee or a security deposit. Good financial habits that translate to a higher credit score can open a lot of doors.
Unfortunately, yes. Annual fees are the cost of having access to the credit line, not using it. So whether you're using your card daily or storing it away for emergencies, you will see that annual fee charge each year.
If you're stuck with an annual fee you don't want, there are two things you should try before canceling your card, which can harm your credit score.
First, ask your issuer to waive the annual fee — 73 percent of cardholders who asked in 2020 were successful, a Bankrate survey found.
If you're denied a fee waiver, ask about downgrading your credit card. Issuers often allow cardholders to "switch" credit cards without opening a new account, giving you the option to opt for a card without an annual fee.
There are a few methods you can use to potentially get your card issuer to waive an annual fee, at least for the short term. These include:
Ask to cancel: Call your card issuer's retention department. If you tell them you want to close your account because of the annual fee, they may waive it. Be aware that this is a risky move, as they may close your account.
Ask for a match: If there are comparable cards that offer many of the same benefits without the annual fee, you're in a good spot to bargain with your card issuer. Be sure to do thorough research before you begin negotiating.
Ask for a waiver in exchange for use: Your card issuer may be more open to waiving your annual fee if you agree to use the card for a specific dollar amount. For example, the card issuer might offer you a credit for the amount of your fee if you spend $3,000 within six months. Again, there's some risk in this scenario as you don't want to commit to spending more than you can pay back in any given month.
Black credit cards are the name for highly exclusive credit cards that are usually available by invitation only. They're known to come with a luxury perks and rewards, as well as a hefty price tag — For example, the Centurion Card from American Express charges a $5,000 annual fee. A black card without an annual fee would be highly unusual.
Mariah Ackary is a personal finance writer who specializes in credit card rewards and small business credit. Mariah is a lifelong writer, but she began writing about finance in 2018. She joined the Bankrate team in 2019, excited by the opportunity to directly help people make good financial decisions. Send your questions to mackary@bankrate.com
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Former Senior Editor Barry Bridges has been writing about credit cards, personal loans, mortgages and other personal finance products since 2017. Before joining Bankrate, he was an award-winning newspaper journalist in his native North Carolina.
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