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Why pay an annual fee when you don’t have to? We’ve reviewed and compared our best no annual fee credit cards to earn rewards, build credit, or save on everyday spending. Choose the right card for your lifestyle and start spending smarter.
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The Citi Double Cash® Card boasts a market-leading unlimited cashback rate of 2%, plus an intro APR period of 18 months, which is comparable to some of the top balance transfer cards. With additional perks like no annual fee, convenient redemption options, and 24-hour fraud monitoring, this card could be a worthy addition to your wallet.
Chase Freedom Unlimited® offers generous cash back rewards with no annual fee. It’s a great card if you spend a moderate amount on travel or dining and don’t want to manage rotating bonus categories. It also comes with 0% intro APR for 15 months, making this card a good choice if you want to pause interest on an existing credit card balance.
The Blue Cash Everyday® Card from American Express is a cash back rewards card with no annual fee. It is a great credit card for individuals with low overall spending who want to benefit from high 3% cash back at U.S. supermarkets, gas, and online purchases (on up to $6,000 per year, then 1%).
The Bank of America® Unlimited Cash Rewards credit card offers an enticing 1.5% unlimited cash back on all purchases, with a chance to earn even more if you’re a Bank of America® Preferred Rewards member. If you’re looking for a hassle-free way to get rewarded for your purchases, this card is worth looking into.
The Citi Rewards+® Card is a solid option for people who engage in frequent small transactions and want to get meaningfully rewarded. Every $1 you spend at supermarkets and gas stations earns you two points, with everything else garnering you one point. These rewards are rounded to the nearest 10, increasing the total value of your earnings.
The Capital One Quicksilver Cash Rewards card provides 1.5% cash back on all purchases and has no yearly fee. The generous welcome bonus, introductory APR, and travel cashback also help this card stand out.
visited a credit card site this month
A no-annual-fee credit card gives you access to a revolving line of credit without paying a yearly fee as a cardholder. The best no-annual-fee credit cards are feature-rich with a solid rewards structure, generous welcome bonus, and other perks.
We conducted extensive research and evaluated many cards based on annual percentage rate (APR), benefits, security, user experience, customer service, and more. Keep reading to see our top picks, learn how to choose the best no-annual-fee card for your situation, and pick up some tips to get the most out of your new account.
There are many solid, no-annual-fee credit cards on the market.
The best card for you depends on your spending patterns and financial goals.
An annual fee can get expensive, but it may be worth it if you take full advantage of the card’s perks.
Like any credit card, there are best practices you should follow to have a good cardholder experience, such as sticking to a budget and paying your bill on time.
Other low-cost payment options exist if you don’t want (or can’t qualify for) a no-annual-fee credit card.
Card | Our Pick for … | Consider other cards if … |
Balance transfers | You want more cash back in a particular spending category. | |
Big restaurant and drugstore spenders | You want a higher reward rate for gas, groceries, or online shopping. | |
Covering daily expenses | You want to earn more rewards when you book travel. | |
Bank of America® Preferred Rewards program members | You’re not a Bank of America® customer. | |
Rewards redemption bonus | You want an easier-to-earn welcome bonus. | |
Easy-to-attain welcome bonus | You want more cash back in a particular spending category. |
Our top picks are a great place to start your research, but here are several other options.
Capital One VentureOne: Earn unlimited 1.25 miles per dollar spent on all purchases, five miles per dollar spent on hotels and rental cars booked through Capital One Travel, and 20,000 bonus points if you spend $500 within three months of opening your account. Save money with a 15-month 0% introductory APR on purchases and balance transfers.
Capital One Savor: Earn 5% cash back on hotels and rental cars booked through Capital One Travel, 3% cash back on groceries, dining, entertainment, and streaming services, 1% cash back on all other purchases, and $200 bonus cash if you spend $500 within three months of opening your account. Save money with a 15-month 0% introductory APR on purchases and balance transfers.
Discover it®: Earn 5% cash back on everyday purchases (categories rotate quarterly) and 1% cash back on all other purchases. Receive an unlimited cash back match on the rewards you earn during your first year as a cardholder.
Wells Fargo Autograph℠: Earn unlimited 3X points on restaurant, travel, gas, transit, phone plan, and streaming service purchases, 1X points on all other purchases, and 20,000 bonus points if you spend $1,000 within three months of opening your account. Save money with a 12-month 0% introductory APR on purchases.
Bilt Mastercard: Earn 5X points at Bilt Neighborhood Dining Partners and on Lyft rides, 3X points on other dining, 2X points on travel booked through the Bilt Travel Portal and on Walgreens purchases, and 1X points on rent. You can use your points to pay your rent or make a down payment on a house.
We looked through online conversations about each of our top picks. Here’s what card users had to say:
Several Reddit users agreed that the Citi Double Cash® Card is a decent option for those wanting to earn steady cash back when they spend — and when they pay the bill. However, it may not be the best card to maximize earnings in a particular spending category or book travel.
The consensus on Reddit is that the Chase Freedom Unlimited® card is one to keep long-term. You can earn cash back with it right away and then earn even more when you pair it with other Chase cards in the future.
Cardholders on Reddit generally agreed that the Blue Cash Everyday® Card is a good option if you want to earn rewards for buying groceries and shopping online.
One forum user said, “Really, it’s one of the cards that any basic cash back person should have.”
However, one Quora user expressed concerns about the decline in American Express' acceptance rate. For instance, in August 2024, eBay stopped accepting American Express due to high processing fees.
American Express responded, saying eBay paid fees similar to those of other card issuers. Plus, according to the February 2024 Nilson Report, 99% of merchants that accept credit cards accept American Express.
Redditors generally agree that the Bank of America® Unlimited Cash Rewards card is a good option if you’re a Preferred Rewards program member because you can earn a higher cash back rate.
However, you may want to look elsewhere if you're not a member. One forum user said, “It's easy to get a 2% cash back card these days, so [there’s] no need to pick up one that will only get you 1.5%.”
According to Redditors, the Citi Rewards+® Card can be worth it if you make many small purchases because your transaction points will be rounded up. The card could also be a good addition to your wallet if you link it with your other Citi cards so that all your Citi rewards earn the 10% points rebate.
However, if you only want to manage one rewards credit card, you may want to think twice before opening this account.
One forum user said, “The biggest points multiplier on that card is 2X, and that’s only for two categories. If you’re using the points only for cash back, you would be much better off getting a flat 2% card like the Citi Double Cash®”.
One Redditor said the Capital One Quicksilver is a “fine card.” However, comments within the thread state that the Capital One Savor card and the Discover it® card offer better perks.
R.J. Weiss, certified financial planner and founder of The Ways to Wealth agrees with some of the cards we’ve featured.
“The Citi Double Cash® Card, Chase Freedom Flex®, and Discover it® are good options,” Weiss says. “The Citi Double Cash® offers a flat 2% cashback on all purchases, while the Chase Freedom Flex® and Discover it® have rotating 5% cashback categories. For most people, starting with a straightforward card like the Citi Double Cash® and then adding a rotating 5% cashback card is a solid two-card combo for those not wanting to pay annual fees.”
An annual fee is a recurring fee a card issuer charges each year to offset the cost of the benefits you receive by being a cardholder. A no-annual-fee credit card is a card that doesn’t charge you to access and utilize these perks.
Many no-annual-fee credit cards provide rewards and other extras. However, premium credit cards often charge an annual fee because they provide highly valuable benefits, such as airport lounge access, free checked baggage, and free nights at a hotel.
Let’s examine some of the pros and cons of no-annual-fee credit cards:
There’s no cost to have and use the card (assuming you don’t incur interest charges or do something to trigger a different fee).
You may be able to earn rewards, such as cash back or points, or enjoy benefits, such as a low introductory APR.
Regular, responsible use can help you build and maintain a good credit score.
The card may be easier to qualify for than one with a high annual fee.
Rewards and welcome bonuses may not be as generous.
The card may not offer many benefits beyond the rewards structure.
The card might have a higher APR.
You may not be able to qualify for an account if you have poor credit.
Annual fees vary dramatically based on the card you choose. For instance, Capital One QuicksilverOne cardholders must pay $39 yearly, while Mastercard® Gold Card™ users must pay $995 annually.
Many premium rewards cards charge users several hundred dollars each year. But, according to the Consumer Financial Protection Bureau (CFPB), as of February 2024, the average annual fee charged by large issuers was $157. Small issuers charged an average of $94.
It might be worth paying an annual fee if the value of the rewards and benefits is greater than the charge. Let's take a look at an example.
Say you open a Capital One Venture account with a $95 annual fee. If you spend $4,000 within three months of getting the card, you’ll receive 75,000 bonus points. Those points are worth $750 – more than 7X the annual fee.
If you use the card to apply for Global Entry or TSA PreCheck®, you can receive up to a $120 statement credit, easily covering the annual fee that year. (Global Entry and TSA PreCheck® are valid for five years.)
But does it make sense to keep the card beyond year one (or after you apply for Global Entry or TSA PreCheck®)? Based on the Capital One website calculator, you’ll need to spend $400 monthly, or $4,800 annually, to break even.
At 2X the miles per dollar spent on any purchase, $4,800 in spend will get you 9,600 miles. Miles are worth $0.01 each, making the total value of your miles $96.
You can break even with less spending if you use your card to book hotel stays, car rentals, or vacation rentals through Capital One Travel. Those transactions earn 5X points for every dollar spent.
A no-annual-fee credit card may be right for you if you want:
More affordable credit
A basic rewards credit card.
To build or rebuild your credit
Conversely, a credit card with an annual fee might work better for you if you:
Want specialized or more generous rewards
Can use the card’s benefits enough to outweigh the cost
Can’t qualify for a credit card without a fee or have excellent credit and can qualify for a card with premium perks
The best no-annual-fee credit cards offer these key features:
A welcome bonus can help you build a healthy rewards balance quickly. You earn a set amount of points or cash back if you meet a spending threshold within so many months of being a cardholder.
For example, new Citi Double Cash® cardholders can earn $200 cash back if they spend $1,500 within six months of opening the account.
An introductory APR can help you save a significant sum in interest payments. Depending on the card, you could receive 0% APR on purchases and balance transfers for a year or more.
A card’s reward structure helps you earn cash back, points, or miles based on your spending. Some cards offer a higher reward rate for spending in specific categories, such as groceries, dining, or online shopping, while others offer a flat rate for all purchases.
Once you earn the rewards, you can redeem them for something of value, such as a statement credit, deposit into your bank account, or gift card. Some cards, like the Citi Rewards+®, also offer redemption bonuses, giving you a certain percentage of your points back when you redeem them.
Generally, a no-annual-fee credit card’s best benefits include rewards for spending and an introductory APR. However, some accounts also feature additional perks.
For example, the Blue Cash Everyday® Card from American Express offers an $84 Disney Bundle Credit, and the Chase Freedom Unlimited® comes with a free three-month Dash Pass membership.
Ideally, your card has low or no usage fees. For example, the Wells Fargo Autograph℠ card doesn’t charge a foreign transaction fee.
In addition, the Bank of America® Unlimited Cash Rewards Credit Card’s balance transfer fee maxes out at 4%. Some other cards on this list charge up to 5% to transfer a balance.
Picking the best no-annual-fee credit card for you is an involved process. Here are the steps to take.
If you’re new to the credit card world, the first thing you should do is learn how credit cards work. Dive into articles that define and explain key terms and concepts, such as card types, APR, fees, rewards, and benefits. Then, it will be easier to understand and compare your options.
Decide why you want this new credit card. Do you want to spread a large purchase over time without paying interest? Do you want to earn cash back or points just for using your card?
Weiss offers this advice: “Look at your highest spending categories. If your spending is spread across various categories, you’re probably best with a card that offers a flat cash back rate. If your spending is more consistent in one category, such as groceries, travel, or dining, consider a card that maximizes rewards in that category.”
Some credit cards are designed for consumers with fair credit, while others are meant for those with excellent credit. Knowing where you stand can help eliminate cards that don't match your credit profile.
Ask your friends and family members about the credit cards they use and what they think about them. Their experience can help you gauge whether a particular card may be right for you.
Discover the popular no-annual-fee credit cards in the market today. Reading articles like this can jumpstart your research.
Take note of any cards that appeal to you. Then, try to rank them.
Compare your top two or three picks side-by-side. Be sure to factor in criteria such as APR, welcome bonus, rewards, other benefits, and other fees.
Identify the best card from your shortlist. Then, follow the card issuer’s application instructions.
The bottom line: “You want something you’re going to use long-term. Since no-annual-fee cards are popular with those just starting out, having one you can keep long-term will help you build your credit history. So, choose an option with a lasting place in your wallet, not something that just gives you a temporary boost,” says Weiss.
Once you have your new no-annual-fee credit card in hand, follow these best practices to get the most out of your account:
Ideally, you should pay off your card's balance every month to avoid paying interest, which can erode (or negate) the value of your rewards. However, if you must carry a balance, pay your bill by the due date. Your credit score will get damaged if you're late or miss a payment.
Set and stick to a budget. It may be easy to overspend using a credit card, but doing so could mean taking on expensive debt.
Read your card’s documentation carefully to understand all its benefits. Then, create a card usage plan to ensure you take full advantage of the perks.
“For those looking to maximize rewards, most no-annual-fee cards are designed to work best when paired with another card. While you don’t need to apply for two cards at the same time, it’s helpful to think in terms of pairs — or for higher spenders, even three cards — that will collectively give you the maximum cash back,” says Weiss.
While your card doesn’t charge an annual fee, it likely comes with other costs, such as a balance transfer, foreign transaction, or late fee. Understanding these expenses can help you decide how to use your account.
Review your statement every month to make sure there are no suspicious charges. It’s also wise to set up account alerts so your card issuer can make you aware of any potentially fraudulent activity in near real time.
How you use your card will directly impact your credit report and score. For best results, pay your bill on time, keep your balance low, use your account regularly, and avoid opening too many new credit lines in a short period.
If a no-annual-fee credit card isn’t right for you, you have other low-cost payment options, such as:
Debit card: Purchases made with a debit card get subtracted directly from your checking account balance and don’t result in debt or interest charges.
Buy now, pay later (BNPL) loan: BNPL loans sometimes allow you to finance a purchase without hard credit checks or fees (including interest).
Gift card: Gift cards are prepaid, so you can’t overspend. Plus, you may be able to purchase some cards for less than face value, saving money.
Cash: When you use cash, you don’t have to worry about paying any fees, including interest.
If you can’t qualify for an unsecured, no-annual-fee credit card, you may be able to rebuild your credit with a secured credit card. A secured credit card is backed by a cash deposit, which becomes your credit line and is collateral if you don’t pay your bill.
Some secured credit cards, such as the Capital One Quicksilver Secured, don’t charge an annual fee and even offer cash back.
We did a lot of research to determine our top no-annual-fee credit cards. Here’s a glimpse at what we considered:
Rates and fees: Introductory APR, standard APR, and other costs, such as foreign, late, and balance transfer fees
Features and benefits: Welcome bonus, rewards, and other perks, like airport lounge access, concierge services, or free checked baggage
Security: Compliance with data security standards, two-factor authentication, and the ability to set up account alerts
User experience: Website navigation, application process, and mobile app usefulness
Customer service: Card issuer history and reputation, user feedback, and available contact methods
The best credit card without annual fees depends on what you want to do with it. For instance, if you want to consolidate high-interest credit card debt, you may be more interested in a card with a lengthy introductory APR period for balance transfers.
On the other hand, if you want to earn as much cash back as possible on everyday expenses, you might want a card that pays out a high rewards rate for gas station or grocery store spending.
“Credit card interest is something you want to avoid, but the reality is that many people end up paying it. If you often find yourself paying interest, the best option is a low-interest credit card,” says Weiss.
On the other hand, if you never carry a balance, the interest rate doesn’t matter, so you may want to focus on saving money in other ways, such as using a no-annual-fee credit card.
An annual-fee credit card may be worth it if the value of the account’s benefits exceeds the expense.
However, if you don’t spend much on your credit card, you’re “less likely to reach the break-even point of benefiting from an annual fee card that offers higher rewards in certain spending categories,” Weiss says.
Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
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Writer bio: Laura Gariepy is a contributing writer to Hearst. As a veteran writer and expert, her work primarily focuses on managing your money, navigating your career, and running a successful business. Her words have been featured in the New York Post, USA Today, and many other publications. She earned her MBA and a Bachelor's in Psychology during her previous career in human resources. Follow her on LinkedIn.