What is an annual fee?
The annual fee on a specific credit card is the cost charged every anniversary year, it represents the cost of using the credit card, in this article, we will be checking the best no annual fee credit card with rewards for you.
The annual fee can be as low as $25, like the Wells Fargo Secured card annual fee, to as extreme as $995, like the annual fee of Mastercard® Gold Card™. However, not all the credit cards charges an annual fee, a big chunk of the credit cards on the market does not charge the annual or waive the fees for the first calendar year. But you need to keep in mind that no annual fee cards can have high value in other fees.
However, some credit cards with no annual fee offer a very impressive value. In this article, we selected our favorites to help you choose the best one for your needs.
Advantages of a no annual fee credit card
There are a good amount of benefits of a credit card with no annual fee. However, the rewards on a no annual fee card are not as high as a card with an annual fee. Some of the common advantages of cards with no annual fees:
Free credit score
A lot of cards, like the Discover it Cash Back credit card, allows a free credit score quarterly or monthly without ruining your credit.
Car rental and insurance
Credit cards like Chase Freedom Unlimited offer secondary auto insurance, allowing you to use it as an addition and supplement to your primary insurance. Some of the no annual fee cards in this selection allow the roadside assistance ( changing tires, fuel delivery..)
Purchase and price protection
Price protection is available with some of these cards, it allows you to basically get your money back on the difference between the price you paid and the actual discounted price of an item.
Some of No annual fee credit cards can offer extended warranty service on your purchases. Like for example, many American Express cards allow you to get up to 2 more years warranty on items you purchased with the card.
Capital One SavorOne Cash Rewards Credit Card, for example, offers extensive and personalized assistance in travel, entertainment, and dining 24h/7d.
When should you own a no annual fee credit card with rewards?
If you are a new credit card users
If you have never used a credit card, it’s a good option to start with a card that has no annual fee to get familiar with credit first. You will be able to get in the habit of making your monthly payments on time and keep track of your expenses
If you need to consolidate debt
If you already own credit cards and need to consolidate their balances, you have the choice of cards that offer a 0% APR on your balance transfers.
If you are an occasional credit card users
A credit card with no annual fee is perfect for you if you expect to use the card only occasionally. This is because you will have to spend a certain amount of money on a card with an annual fee in order to break even.
Also, this kind of credit card is way easier to get, because it usually doesn’t require a high credit score.
Cards with no annual fee are great then for building your credit, just make sure to stay on top of your monthly payments.
18 Best no annual fee credit card with rewards
18. Capital One® Spark® Cash Select for Business
Pros: This credit card offers a flat-rate cashback which means more clarity and simplicity. You can then stack the cash-back rewards every time you purchase with this card.
As a bonus, you can get a $200 cash-back after spending $3,000 on your purchases during the first 3 months.
The card allows you to make saving due to the 0% interest introductory offer during the first 9 months (then it changes to 14.74% – 22.74% ).
The card has also NO Foreign Transaction Fees, and that’s awesome for travelers.
Getting to the rewards: you will be able to get a flat 1.5% cashback on every purchase. Simple as that, no specific categories and no spending caps!
17. Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard®
Credit card Bonus: you get 50,000 AAdvantage miles after spending $2,500 in the first 3 months. Or if you own the business version of the card, the bonus is upgraded to 70,000 AAdvantage miles whenever you spend $4,000 during the first 4 months.
Pros: You can get 2x at gas stations and restaurants and also some purchases on American Airlines. 1x is what you earn on the rest of your purchases. If you book domestic American Airlines flight you have a free first checked bag offer to enjoy.
If you are a traveler this card has no foreign transaction fees. On top of that, you may get a $125 American Airlines discount on flights after you spend $20,000 in purchases in a year.
Annual fee: Free the first year then $99 after that.
16. Uber Visa Card
Credit card bonus: $100 Offer after spending $500 on your purchases during the first 3 months.
Pros: Uber Visa card has no annual fees and offers a great bonus on purchases in some categories. You may get a 4% cash back on restaurants, bars, then you can earn 3% cashback on air travel and hotels. 2% cashback on online purchases (shopping, streaming..), then finally 1% cashback on all other purchases.
The Uber Visa Card also has zero foreign transaction fees and offers additional cellphone insurance up to $600. You can get also $50 credit for streaming and online music subscription services whenever you spend $5,000 in a year. These are really generous rewards to take advantage of.
15. Bank of America® Travel Rewards Visa® credit card
Credit card bonus: You can get 25,000 points after spending $1,000 with the card during the first 3 months.
Pros: This card rewards are very simple. You earn 1.5 points per every 1$ on all purchases with no cap which is not bad. Also, you can increase the bonus by 75% if you are a Preferred Rewards member. This card charges no annual fee and zeroes foreign transaction fees.
You may use the points you stack with the card to book flights, hotels, rent a card and other services… The card offers an additional bonus of 25,000 points when you spend $1,000 or more during the first 3 months.
14. United℠ TravelBank Card
United offers a nice value into the United℠ TravelBank Card, and it’s mainly for leisure travelers. It has a simple and clear rewards program with decent rewards on your purchases. In addition to that, the card does not charge any foreign transaction fees.
Pros: You will be able to get an unlimited 2% cashback per every dollar you spent on United Airlines flights and a decent 1.5% cashback on all other purchases. You may also earn 25% back on food purchased during the United flights. You can redeem the points you stack for United tickets. The card also offers a good sign-up bonus.
Cons: Unfortunately, you won’t be able to get free checked bags with this credit card. Also, the points do not count in the United MileagePlus frequent-flyer program.
13. American Express® Blue Business Cash Card
Pros: The card has a simplified rewards scheme, you can get flat-rate cashback on your purchase up to $50,000 during the same year.
You don’t have to worry about specific categories, which makes this card perfect for small businesses.
Bonus: you will have the advantage of a nice introductory offer where you pay no interest at all on balance transfers and purchases during the first year. (then, 14.99% – 20.99%).
Foreign Transaction Fees: The card, unfortunately, charges 2.7% of your purchases after conversion to USD.
The Rewards: You will be able to get a 2% cashback when you spend $50,000 every calendar year. Then you get a 1% cashback on all your purchases beyond the 50K spending cap.
12. Capital One VentureOne Rewards
Credit card bonus: You can get 20,000 miles after spending $1,000 on all your purchases during the first 90 days.
Pros: The VentureOne Rewards will allow you to get 10x Venture Miles on your booking at Hotels.com and also these miles will allow you access to airline transfer partners.
The VentureOne card from Capital One does not charge any annual fee.
Also, a bonus of 20,000 miles is offered upon sign-up whenever you spend $1,000 during the first 90 days. That’s approximately worth $280.
This credit card also offers 1.25 miles for every 1$ spent literally with no cap. You will be able to get more than 1% cashback on travel, this on top of the 10x on hotels.com is a really generous reward program!
11. Amex EveryDay Card from American Express
Credit card bonus: You will get with this Amex card a 10,000 Reward points after spending $1,000 on all your purchases in the first 90 days.
Pros: This Amex card with no annual fee allows you to transfer the reward points directly to travel partners. You can get up to 1.2 Amex Rewards points per every 1$ spent.
You will also be rewarded 2x points when you spend $6,000 at supermarkets each year the first time (then it goes back to 1x).
You will have a nice introductory bonus of 10,000 points when you spend $1,000 during the first 90 days. The Amex card charges a 2.7% foreign transaction fee though.
10. PenFed Pathfinder Rewards American Express Card
Credit card bonus: You will be able to get 25,000 bonus points when spending $2,500 during the first 3 months.
Pros: This PenFed credit card is really a very good no annual fee card that competes with premium rewards credit cards. You will earn up to 25,000 points on sign-up bonus the moment you reach $2,500 in purchases during the first 3 months.
You will be able to get 3x points on all travel expenses then 1.5x points on every other purchase each day. This is a really great sign up bonus to consider!
On top of that, you will get a credit of up to $100 every 5 years and a $100 annual airline credit. You can use that credit for lounge access, onboard expenses, etc … You will need to be a member of PenFed but anybody can qualify.
The PenFed credit card is really impressive in the category of no annual fee credit cards with rewards.
9. Fidelity Rewards Visa Signature Card
Pros: The Fidelity Rewards card allows you to get 2% cashback unlimited on all purchases without a cap. The card obviously has no annual fee since it’s on our list.
You also have the ability to transfer your rewards into any of the 6 Fidelity account types.
You may also transfer your earned rewards into another relative’s account. In addition to that, you will get the perks of a Visa Signature card.
This card is issued by Elan Financial Services. So if you want to diversify the banks you are using, this might be a good option.
However, this card charges 1% on foreign transaction fees.
8. Discover it® Cash Back
Pros: Discover it Cash Back credit card has rotating quarterly categories, similar to Chase Freedom, you can earn 5% cashback when you spend your first $1,500. Then you get a 1% no cap cash back on all your other purchases.
You will be able to earn 5% every quarter in cash back on up to $1,500 in expenses in specific rotating categories.
On top of that this Discover card is really awesome, because not only it doesn’t charge any annual fee, but it also has no foreign transaction fees and waives any late payment fee on your first late payment.
7. Hilton Honors American Express Card
Credit card bonus: You will be able to get 75,000 Hilton points spending your first $1,000 during the first 90 days.
Pros: This card is the best mix of no annual fees and also generous rewards, it allows you to get a very generous amount of points on bonus categories. For instance, you may earn 7x points on expenses inside the Hilton universe; also you earn 5x points on restaurant, gas station, supermarkets inside the US. Finally, you get 3x points on all other purchases. This credit card also charges no foreign transaction fee which is perfect if you are a traveler.
You will be able to enjoy the Hilton Honors Silver status, with all the perks like a 20% points bonus, late check-out, fifth standard-award night free, no resort fees on award stays… And if you reach $20,000 in spending on the card the same year you will be upgraded to Gold status by the end of next year. it’s maybe the best no annual fee travel credit card.
6. Chase Freedom
Credit card bonus: You will be able to earn a $150 when you spend $500 during the first 90 days.
Pros: With this card, you will get rewards of 5% cash back on rotating categories. And 5 points per every $1 spend on up capped at $1500. You can spend your bonus rewards on department stores, Chase Pay and Paypal.
Chase Ultimate Rewards points are very valuable, mixed with a $150 sign-up bonus this card really offers a great value.
The Points are valued at 1 cent each when redeemed on travel via the Ultimate Rewards travel portal or redeemed via gift cards.
You also have the ability to combine your earned points with other Chase cards like the Sapphire Preferred Card, you can then use them at a rate of 1.25 cents per point.
The Chase Freedom card is really versatile which makes one of our selection for the best no annual fee credit card with rewards.
5. Ink Business Cash Credit Card
Credit card bonus: You will be able to get $500 when you spend $3,000 during the first 90 days.
Pros: On top of the generous introductory bonus of $500, you will be able to get 5% back on the first $25,000 every year spent at office supply stores, cable and phone services and on the internet. Then you will get a 2% cash back after spending your first $25,000 at restaurants and gas stations. Finally, you earn 1% back on all other purchases.
In addition to the cashback, you have the ability to transfer your rewards and redeem them as points if you wish.
4. Citi Rewards+ Card
Credit card bonus: You will be able to get 15,000 bonus points after spending $1,000 during the first 90 days.
Pros: The Rewards+ Card has a different rewards program where you will get 2x points on gas stations and groceries capped to $6,000 then you will earn a 1 point per $1 on other purchases.
You can redeem the rewards you get with this card toward travel tickets, statement credits or gift cards and the rate will be fixed at 1 cent for every point.
Still, you have the ability to transfer points between different Citi rewards programs if you own another Citi Card like for instance the Citi Prestige® Card or Citi Premier℠ Card. Then you have access to other Citi airline partners, like Singapore KrisFlyer, Virgin Atlantic Flying Club and Etihad Guest.
3. Bank of America® Cash Rewards credit card
Benefits: The card offers a good rewards program on everyday purchases, but also, it offers the possibility to select a category where you will collect more rewards.
Introductory Bonus: you will earn a $200rewards bonus after spending $1,000 on purchases during the first 90 days.
Foreign Transaction Fees: The card, however, charges 3% on foreign purchases.
Rewards program: You will earn 3% cashback in the category of your choice. Then you will be able to get 2% back on groceries and wholesale clubs. Finally, 1% no capped on all other purchases.
You can change and update the category of your choice whenever you need to.
Also, the rewards you earn do not expire and you can get more cash bank in case you are a Preferred Rewards client.
2. Capital One® Quicksilver® Cash Rewards Credit Card
Benefits: The card charges no foreign transaction fees which are great if you are a traveler.
Bonus: You will be able to get a $150 cash-back introductory bonus when you spend $500 during the first 90 days.
This Capital One has a great offer of 15 months when you pay no interest on purchases and balance transfers.
The card charges no foreign transaction fees.
Rewards program: It’s a very simple and straightforward scheme of 1.5% cashback on every purchase. It’s unlimited, so you don’t have to worry about caps either categories.
1. Chase Freedom Unlimited Card
Credit card bonus: You will get $150 after you spend $500 on during the first 90 days.
Pros: You will be able to get 1.5% cashback on all purchases with no cap. This is more interesting if you own a premium Ultimate Rewards chase card such as the Ink Business Preferred Credit Card. Then you will be able to transfer the cashback to points and get 1.5x Ultimate Rewards on your expenses. Or if you have the Chase Sapphire Reserve, you can combine both card points to get a minimum 2.25% return on all your purchases with Chase Freedom.
The card does not charge any annual fees of course however it charges a 3% foreign transaction fee. You can switch to the Ink Business Unlimited Credit Card if you are a business owner.
This credit card then is our top pick for the best no annual fee credit card with rewards, you can check our selection of the best cashback credit cards this year.