In this content, expect the Best No Annual Fee Credit Cards. Credit cards that carry no annual fee would allow you to enjoy all the benefits that the credit card is offering without having to pay for the Privilege or even justify the recurring expense with whatever rewards that you are earning through your spending each year.
As a matter of fact, there are several cards that earn cash back, points, or miles without you paying an annual fee. A no-annual fee card can be an amazing option for people that do not spend a lot using their credit cards as well as for seasoned rewards strategists that are looking to maximize their earnings.
This list entails the top-rated annual fees of credit cards in quite a number of categories. Plenty of these cards have some great offers, bonuses, and 0% APR promotions on purchases, balance transfers, or both. Just because you are not paying an annual fee does not mean that you would have to settle for a bare-bones credit card. Here I would be giving you our best annual fee credit cards.
Best No Annual Fee Credit Cards
At the time this article is written, the credit cards on this list happen to be some of the best cards that offer no annual fee. So, let’s get right into listing them:
- Best Overall, Best for Cash Back: Capital One Quicksilver Cash Rewards Credit Card – More Details
- Best for Dining: Capital One SavorOne Cash Rewards Credit Card – More Details
- Best for First-Year Cash Back: Chase Freedom Unlimited – More Details
- Best for Travel: Bank of America Travel Rewards Credit Card – More Details
- Best for Students: Bank of America Travel Rewards for Students – More Details
- Best for Highest Ongoing Earnings: Citi Double Cash Card – More Details
- Best for Airlines: United Gateway Card – More Details
- Best for Hotels: Hilton Honors American Express Card – More Details
Types of No Annual Fee Cards
There are several types of credit cards that has no annual fee available for consumers and small businesses to select from, depending on what is the most important to them. You would find some no annual fee cards under the following categories:
- Cash back credit cards
- Secured credit cards
- Airline, hotel, and co-branded credit cards
- Student credit cards
- Rewards credit cards
- Small business credit cards
- 0% APR promotion cards
Credit cards that possess an annual fee typically offer higher rewards when it comes to spending and some additional benefits than those that carry no annual fee. It is best that you consider how much you would realistically spend on the card and just how often you can make use of the benefits in other to determine if you are not paying the annual fee or if it is worth it for you.
Pros and Cons of No Annual Fee Credit Cards
- They are inexpensive to carry
- They often offer cash back, points, and miles-based rewards
- They might have some introductory APR offers on purchases and balance transfers
- You Do not need to generate enough rewards in other to justify an annual fee
- They tend to offer much smaller introductory bonuses, if any, compared with even more lucrative rewards cards that charge annual fees
- Even fewer features and insurance coverages vs. premium cards
- They tend to become easily inactive if they are not used
What is an Annual Fee?
An annual fee is a fee that is imposed by some credit card issuers on their cardholders every year. This fee is referred to sometimes as an annual membership fee, it is similar to the membership fee that you might pay for an Amazon Prime account or a Costco Wholesale club membership and it is designed to offset some or all of the costs that the card issuer happen to incur in offering the card to the consumers.
For the past decades, most banks often charge modest annual fees on plenty of their products, but competitive pressures ushered in no annual fee offers as a marketing incentive.
A no annual fee credit card offer became quite the standard due to competitive pressures, except in situations of unusually lucrative rewards programs, large upfront bonuses, or cards that are aimed at people that have impaired credit.
What Is an Average Annual Fee for a Credit Card?
For cards that are charging them, annual fees tend to offer range from as low as $25 up to an eye-popping $695 for ultra-premium cards like the Platinum card that American Express offers.
A lot of popular general travel cards and most co-branded airline and hotel rewards credit cards charge annual fees, but these tend to be under $100 per year and sometimes get waived for the first year. However, there is still plenty of travel and even some co-branded no annual fee options available, allowing you to avoid this expense entirely though with some diminished rewards.
What Does No Annual Fee Mean?
Selecting a credit card that has no annual fee starts with you deciding if you are truly averse to an annual fee. Then, it would lead to the question, which card with no annual fee is great for you?
A no-annual-fee card offers a 0% introductory APR on purchases and on-balance transfers for a year or more and can be a great choice for anyone that has existing high-interest credit card debt.
For those that are looking forward to rewards, it is useful for you to analyze your spending patterns. There are several no annual fee cards that provide bonus earnings for everyday spending categories which include:
- drugstores, or monthly streaming services
What Credit Score Is Needed for a No Annual Fee Credit Card?
The credit score that is required to get approved for a no-annual fee credit card is based on which bank is issuing the card and which card you would be applying for. a lot of banks offer several no annual fee credit cards that would help meet the needs of a variety of customer profiles.
The credit card on my list, recommends a good credit score of a minimum of 670 when applying. If you have a bad or a fair credit card, there are several competitive options for credit cards that build credit, and some of them do not have annual fees. As your credit score gets better, you can choose to apply for one of those cards that have annual fees.