“Advertiser Disclosure: Just Start Investing LLC is part of an affiliate sales network and receives compensation for sending traffic to credit card partner sites. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.”
No annual fee credit cards are a type of credit card that is best for people who are low spenders, who don’t travel, want general rewards, or are looking for a second or third credit card.
You can apply for the best no annual fee credit cards here:
What is an Annual Fee Credit Card?
A no annual fee credit card, simply, is a credit card that does not charge an annual fee. It’s free to use, as long as you abide by its rules.
A card with no annual fee still comes with it’s benefits. The best no annual fee credit cards will offer rewards programs that allow you to earn cash back, sign-up bonuses, and more.
With a $0 annual fee card, you won’t have to worry about earning enough rewards to offset an annual fee. Everything you earn from day one is money in your pocket.
Criteria for Making the List
There are a couple of things to keep in mind when looking at the best no annual fee credit cards:
- This is a general list of the best cards, meaning it is for the general population. If you want to find the best card for you specifically, check out our credit card tool or do the math yourself to see which card pays back the most.
- The criteria for selecting the best no annual fee credit cards included:
- Rewards: What percent cash back (or other rewards) you are receiving.
- Perks: Other perks like no foreign transaction fees, sign up bonuses, etc.
- Customer Service / Reliability: Subjective measure of how reputable the card and company issuing it is.
- We did not take APR or late fees into account, as our assumption for these credit cards is that they will be paid on time and in full. In addition, balance transfer options and fees were not taken into account.
- The estimated values below are estimates based on the following assumptions:
- Card is held for 5 years.
- Monthly expenses = $1,000 ($200 – Dining, $100 – Travel, $200 – Grocery, $50 – Online / Amazon, $100 – Gas, $100 – Entertainment, $250 – Everything Else).
Best No Annual Fee Credit Cards
Best Quarterly Rewards Card: Chase Freedom Flex
$1,230 5 Yr Value
- Rewards: 5% cash back on different categories each quarter (i.e. gas, groceries, restaurants, etc.) on up to $1,500 of purchases, 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining, 3% cash back at drugstores, and 1% cash back on everything else.
- Perks: $0 fraud liability, purchase protection, and great customer service.
- Bonus: $200 bonus when you spend $500 within the first three months from account opening.
The Chase Freedom Flex card is one of the best no annual fee credit cards, and a new one to the Chase lineup. It replaced the original Chase Freedom card in 2020.
It offers solid rewards with 5% cash back in different categories every quarter and an unlimited 1% cash back on everything else. It also added better rewards in new categories, including travel, dining, drugstores, and grocery stores (not including Walmart or Target, on up to $12,000 in spending in your first year).
Plus, it offers a $200 bonus opportunity in the first year of using the card.
With top-notch customer service, there is not much to complain about.
Apply now: The best no annual fee credit cards.
Best Cash Back Card: Citi Double Cash Card
$1,200 5 Yr Value
- Rewards: 2% cash back on all purchases (1% at purchase and 1% as you pay off those purchases).
- Perks: 24-hour fraud protection and fast customer service.
- Bonus: None.
The Citi Double Cash Card is one of the few no annual fee credit cards out there that offer 2% cash back on all purchases. Pairing this card with a quarterly 5% cash back card, like the Chase Freedom card above, could be a strong two-card strategy.
The biggest downfall is that it does not offer a welcome bonus.
Similar Card: Fidelity Rewards Visa Signature Card.
Apply now: The best no annual fee credit cards.
Best Niche Card: Capital One SavorOne Cash Rewards Credit Card
$1,230 5 Yr Value
- Rewards: 3% cash back on dining and entertainment, 2% back at grocery stores and 1% back on all other purchases.
- Perks: No foreign transaction fees, 24/7 customer service and extended warranties on items purchased with the card.
- Bonus: $150 bonus when you spend $500 within the first three months from account opening.
The Capital One SavorOne card made a splash in the credit ard market by offering a high cash back percentage on dining and entertainment. Entertainment had not previously been a focus category for major credit cards issuers, as most no annual fee cards reward spending on travel, dining, and sometimes groceries.
Plus, with a special concierge service to help book events and travel, this card is tailored for those who spend a lot on entertainment.
Similar Card: Uber Visa Card.
Apply now: The best no annual fee credit cards.
Best Everyday Card: Chase Freedom Unlimited
$1,050 5 Yr Value
- Rewards: 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining, 3% cash back at drugstores, and 1.5% cash back on everything else.
- Perks: Great customer service and fraud protection.
- Bonus: $200 bonus when you spend $500 within the first three months from opening an account.
The Chase Freedom Unlimited Card is a popular credit card choice because of its above-average bonus offer and unlimited 1.5% cash back. It also evolved in 2020, and similar to the Chase Freedom Flex card, offers better rewards in new categories, including travel, dining, drugstores, and grocery stores (not including Walmart or Target, on up to $12,000 in spending in your first year).
While you will not earn the absolute most cash back year after year with this card, the bonus and reliability make this card worth considering.
Similar Card: Capital One Quicksilver Card.
Apply now: The best no annual fee credit cards.
Other Good No Annual Fee Credit Card Options:
The above list of best no annual fee credit cards is extensive, but not exhaustive. Below are some more options to explore, which you can do by clicking the button below.
- Capital One VentureOne Rewards Card
- Bank of America Travel Rewards Card
- Blue Cash Everyday® Card from American Express
- Wells Fargo Propel American Express card
Explore the Best No Annual Fee Cards:
Is a No Annual Fee Credit Card Right for Me?
The answer to this question is usually quite simple, but it requires some math.
In general, low spenders (or someone who does not travel) should utilize no annual fee cards. Conversely, high spenders (or frequent travelers) can often benefit from premium cards with an annual fee.
See the example in the annual fee section of this post comparing two Chase credit cards to learn more and find cards that are right for you.
Remember, getting approved for the best no annual fee credit cards also requires a good credit score.
Learn More About Annual Fee Credit Cards:
Types of No Annual Fee Credit Cards
There are three major types of no annual fee credit cards to compare. Understanding these options will help ensure you pick the best credit card for you.
Cash Back Credit Cards
The first type of no annual fee credit cards are cash back credit cards. These types of cards offer straightforward cash back rewards programs, along with modest benefits and sign-up bonuses.
Cash Back Card Examples:
- Chase Freedom: This Chase Freedom card is a rotating category rewards card, offering 5% cash back in different bonus categories each quarter.
- Citi Double Cash Card: The Citi Double Cash Card is one of many flat rate rewards cards, offering 2% in cash back on every dollar spent.
Rewards Credit Cards
No annual fee rewards credit cards are similar to cash back cards, but they offer rewards points or airline miles with every purchase, instead of cash. These types of cards also typically offer modest secondary perks and a welcome bonus.
Rewards Card Examples:
- Capital One VentureOne Rewards Card: Earn 1.25x miles on every $1 spent.
- Bank of America Travel Rewards Card: Offers a rewards rate of 1.5 points on every $1 spent.
Secured Credit Cards
Secured credit cards require a security deposit in order to open, and usually that security deposit becomes your initial credit limit. These types of cards help consumers build credit and are designed for people with poor or no credit.
Secured Card Examples:
- Capital One Secured Mastercard
- Citi Secured Mastercard
How to Maximize Credit Cards with No Annual Fee
There are five major actions you can take to ensure you make the most of your no annual fee credit card.
1. Use Your Card
A no annual fee credit card only benefits you if you actually use it to spend money! It’s a significantly better option than using cash or a debit card, where you won’t get any rewards.
The key is to spend within your limits. If you carry a balance on your no annual fee card, the high interest rates that you have to pay will cancel out will any benefits that the card was providing (assuming you do not have a card with a 0% intro APR).
2. Pay Your Card On Time
Pay your card on time and in full, every month.
It’s a win-win if you do, as you build your credit and also avoid unnecessary late fees and high interest rate expenses.
3. Pair it With a Premium Credit Card
Pairing your no annual fee credit card with a premium card can be a good way to maximize your spending in certain categories.
For example, the Capital One Savor Cash Rewards Credit Card provides generous rewards on dining out and entertainment. Though, it’s reward value on all other spending is only 1%. If you were to pair this card with the Citi Double Cash Card, you could earn higher rewards on dining and entertainment with the Capital One Savor Rewards Card, and earn 2% back on everything else with your no annual fee card.
In another example, pairing Chase cards can often unlock better rewards. You can convert your cash back earnings from the Freedom cards into Chase Ultimate Rewards Points and redeem them using Chase Sapphire cards, where you get even more redemption power when used for travel rewards.
4. Don’t Cancel Your Credit Card
If you use your credit card responsibly, and it doesn’t have an annual fee, there is no reason to ever cancel the credit card.
If you can cancel the card, it will drop off your credit score in 7 years, and so will the positive credit history that came with it. Keeping your credit card open is a great way to continue to build a long and strong credit history.
5. Explore the Secondary Benefits
Last but not least, don’t forget about the secondary benefits that a no annual fee credit card offers.
Whether it’s purchase protection, credit score monitoring, or concierge service, most credit cards offer free benefits for cardholders to take advantage of.
Explore Your No Annual Fee Card Options and Apply:
Pros and Cons of the Best No Annual Fee Credit Cards
No Annual Fee Credit Card Pros:
Sign-Up Bonus: Many no annual fee credit cards offer introductory welcome bonuses that could be valued anywhere from $100 to $500.
Straight-Forward Rewards: No annual fee credit cards typically offer straight forward and generous rewards, ranging from 1.5% – 2% cash back and rewards points on every dollar spent.
Builds Credit: A no annual fee credit card is great for building credit, as you never have to worry about canceling the card. You can keep the card open and on your credit history forever.
No Annual Fee Credit Card Cons:
Smaller Benefits: No annual fee cards offer smaller rewards benefits when compared to premium credit cards and luxury credit cards that have an annual fee. This means a smaller intro sign-up bonus and fewer rewards per $1 spent, but that’s why these cards don’t have an annual fee.
Less “Secondary” Perks: Luxury cards typically come with secondary perks like airport lounge access and free checked bags. The best no annual fee credit cards will have some of these perks, but not to the same extent as annual fee cards.
No Annual Fee Credit Card Frequently Asked Questions (FAQ)
Question: What is the best no annual fee credit card?
This depends on your spending habits and what you are looking for in a credit card. The Chase Freedom Unlimited is a great first credit card that offers a sign-up bonus, but there are a lot of other options to explore as well.
Question: Is a no annual fee credit card “free”?
For the most part yes, but only if you abide by the card’s other rules. No annual fee credit cards can still charge fees, like late fees, foreign transaction fees, a balance transfer fee, and regular APR. If you can avoid these fees, then the card is essentially “free”.
Question: Can you get a no annul fee card with bad or no credit?
Yes, but you may need to get a secured credit card. These types of a credit card are a good option for people with bad credit and no credit, who want to build their credit score.
Question: What does no annual fee mean?
No annual fee means you do not have to pay a fee (typically $99) every year in order to use your credit card.
Question: What is the easiest no annual fee card to get approved for?
Secured credit cards are typically the easiest no annual fee credit cards to get approved for. There are some student credit cards that are easier than others as well, but most no annual fee cards that offer rewards and cash back require good credit in order to get approved.
Question: Which is better, annual fee cards or no annual fee cards?
This depends on your spending habits and which categories you spend in. High spenders and those who like to travel can often reap more benefits from a annual fee card, while low spenders or first time credit card users are better off with a no annual fee card.
Question: Why do some cards have an annual fee?
The simple answer is annual fee cards cost more for a company to run and operate. Annual fee credit cards typically offer more wards, and the annual fee helps offset these costs. Though, the credit card companies want to offer the rewards, because it usually entices cardholders to spend more. Which, in the end, is good for the card issuers.
Question: Should I downgrade to a no annual fee card?
If you find that you are not earning enough rewards or cash back to offset your annual fee, it might be time to consider downgrading to a no annual fee credit card.
Explore Your No Annual Fee Card Options and Apply:
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.