There are many advantages of no-annual-fee credit cards. First of all, you’re not paying anything to hold these cards, so you’re able to keep them as long as you wish. Since the length of your credit history is one of the factors that makes up your credit score, it can be prudent to hold on to a no-annual-fee credit card indefinitely.
Another advantage of having a no-annual-fee card is that you’re earning rewards at no additional cost to you, especially on items you’d purchase normally — it’s a win-win all around.
Some no-annual-fee cards come with additional benefits that can save you money. You’ll find 0% APR introductory periods for purchases and balance transfers from other cards that can save you interest costs when you utilize these introductory offers. You’ll also find cards that offer travel insurance and benefits, shopping protections, and even complimentary hotel elite status.
All of these advantages are great. But how do you choose the right no-annual-fee credit card for your situation? Our recommended no-annual-fee credit card list can help you decide just that.
As you read through, keep your greatest expenses in mind. As you evaluate each card, consider how you might want to redeem the rewards you earn and note if there are any complimentary benefits that might be useful to you.
The Best No-Annual-Fee Credit Cards — Summary
The Best No-Annual-Fee Credit Cards — Comparison Table
| Card |
Best For |
Welcome Bonus |
Card Rewards |
| Chase Freedom Unlimited® |
Travelers |
INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back! |
- 5% cash-back on travel purchased through the Chase travel portal
- 3% cash-back on dining and at drugstores
- 1.5% cash-back on all other purchases
|
| Chase Freedom Flex℠ |
Rotating Bonus Categories |
Earn a $200 after you spend $500 on purchases in your first 3 months. |
- 5% cash-back in quarterly bonus categories (up to $1,500 in spend) and on travel purchased through the Chase travel portal
- 3% cash-back on dining and at drugstores
- 1% cash-back on all other purchases
|
| U.S. Bank Cash+® Visa Signature® Card |
Rotating Bonus Categories |
Earn a $200 bonus after spending $1,000 on eligible purchases within the first 120 days. |
- 5% cash-back on 2 quarterly categories of your choosing (up to $2,000 in spend)
- 2% cash-back on 1 everyday category of your choosing
- 1% cash-back on all other purchases
|
| Citi Custom Cash℠ Card |
Rotating Bonus Categories |
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. |
- 5% cash-back on your highest eligible spend category each billing cycle (up to $500 in spend)
|
| Citi® Double Cash Card |
Everyday Spending |
For a limited time, earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening. |
- 2% cash-back on all purchases (1% when you buy and another 1% when you pay, earned as ThankYou Points)
|
| Capital One SavorOne Rewards Credit Card |
Dining |
Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening |
- 3% cash-back on dining, entertainment, popular streaming services, and grocery stores
- 1% cash-back on all other purchases
|
| Costco Anywhere Visa® Card by Citi |
Dining |
No welcome offer available. |
- 4% cash-back at gas stations and on EV charging purchases (up to $7,000 in spend)
- 3% cash-back restaurants and eligible travel purchases worldwide
- 2% cash-back at Costco and Costco.com
- 1% cash-back on all other purchases
|
| Ink Business Cash® Credit Card |
Businesses |
Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months. |
- 5% cash-back at office supply stores and on internet, cable, and phone services (up to $25,000 in spend)
- 2% cash-back at gas stations and restaurants (up to $25,000 in spend)
- 1% cash-back on all other purchases
|
| Ink Business Unlimited® Credit Card |
Businesses |
Earn $750 bonus cash-back after you spend $7,500 on purchases in the first 3 months. |
- 1.5% cash-back on all purchases
|
| The Blue Business® Plus Credit Card from American Express |
Businesses |
Earn 15,000 points after spending $3,000 on purchases in your first 3 months. |
- 2x points on everyday business purchases (up to $50,000 in spend)
- 1x point on all purchases thereafter
|
The 7 Best No-Annual-Fee Personal Credit Cards
Many no-annual-fee cards allow you to earn rewards every time you eat out, order takeout, or have a snack at the bar. Image Credit: Rawpixel.com via Shutterstock
In no particular order, here are our favorite no-annual-fee personal credit cards that offer a great balance of rewards and perks to cardholders.
Top Reasons To Get the Card
- Welcome cash-back bonus
- 5% cash-back on travel purchased through Chase Ultimate Rewards
- 3% cash-back at drugstores and on dining
- Unlimited 1.5% cash-back on all other purchases
- Travel and purchase protection
This is a straightforward card that earns rewards on every purchase you make, especially for travelers. The Freedom Unlimited card earns cash-back in the form of Ultimate Rewards points that can be redeemed multiple ways, including for travel via the Ultimate Rewards travel portal at a base rate of 1 cent per point.
If you also have a premium Chase credit card such as the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®, you can combine the points earned on your Freedom Unlimited card to redeem them for an increased value of up to 50% more. Your Ultimate Rewards points can also be transferred to airline and hotel partners as well.
The Freedom Unlimited card also comes with rental car insurance, purchase protection, and extended warranty coverage.
Unfortunately, the card does charge a 3% foreign transaction fee, making it a poor choice for international travel.
If this card sounds like it may be a fit for you, read more about the Freedom Unlimited card’s most valuable benefits, as well as more information on great reasons to apply for the card.
This simple card is a consistent earning tool for valuable Chase Ultimate Rewards points.
Top Reasons To Get the Card
- Cash-back welcome bonus
- 5% cash-back in rotating quarterly bonus categories up to $1,500 spending per quarter
- 5% cash-back on travel purchases through Chase Ultimate Rewards
- 3% cash-back on dining and drugstore purchases
- Cell phone protection, purchase protection, and extended warranty coverage
The Freedom Flex card offers a simple way to earn Chase Ultimate Rewards points. Each quarter, you’ll see bonus categories such as grocery stores, gas stations, wholesale clubs, home improvement stores, and more that can earn up to $75 in points each quarter.
Your points are worth up to 50% more when redeemed for travel when transferred to a premium Chase credit card such as the Chase Sapphire Preferred card or Chase Sapphire Reserve card.
While it’s difficult to find any downside to the card, there is 1 clear negative — foreign transactions made with the card are charged a 3% fee.
Top Reasons To Get the Card
- 5% cash-back on quarterly bonus categories you select, up to $2,000 spent each quarter
- 2% cash-back on 1 bonus category that you select
- Visa Signature benefits
Selecting your bonus categories each quarter takes extra work, but the unlimited 2% earnings and up to $400 on 5% quarterly bonus earnings each year can be worth the trouble for the right cardholder.
The cards in this category offer simple earning structures that make everyday spending a rewarding experience.
These cards may be a good fit if you’d like to earn rewards on every purchase you make but have no interest in paying an annual credit card fee and don’t have time to decipher complicated earning schemes.
Top Reasons To Get the Card
- 5% cash-back on purchases in your top eligible spend category each billing cycle, on up to the first $500 spent
- Eligible categories include restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, and live entertainment
With the Citi Custom Cash card, you’ll earn big on purchases in your top eligible spend category, up to the first $500 each billing cycle. There’s no category to select — you’ll automatically receive 5% back on whichever category you end up spending the most on each month.
The card also offers a cash welcome bonus offer and a 0% intro APR offer.
Top Reasons To Get the Card
- 2% cash-back on every purchase: 1% when you make the purchase and 1% when you pay it off (earned as ThankYou Points)
While Citi has removed its core travel and purchase benefits from its cards, there’s plenty of value left over when it comes to earning simple cash-back or transferring a high-interest credit card balance to take advantage of the 0% introductory APR.
This card’s cash-back can be used for a statement credit, a direct deposit, a check, or for gift cards. Its Citi ThankYou Points can be used for limited travel partners, or you can pair the card with a premium card such as the Citi Premier® Card to utilize all of Citi’s transfer partners.
Bottom Line: If you spend a lot in a specific category, it may make sense for you to compare no-annual-fee cards with certain cards that do charge an annual fee in exchange for higher earning potential, greater flexibility at redemption time, and a longer list of valuable travel and shopping benefits/protections providing extra value. Check out our guide to the best credit cards for each bonus category for our suggestions.
6. Capital One SavorOne Rewards Credit Card
Top Reasons To Get the Card
- Welcome bonus
- Unlimited 3% cash-back spent on dining, entertainment, popular streaming services, and at grocery stores
Foodies will love paying their dining tab with the CapOne SavorOne card and getting 3% cash-back on every dining and entertainment purchase.
Hot Tip: Want to earn even more points or cash-back rewards when dining out? Check out our collection of the best credit cards for restaurants and dining.
Top Reasons To Get the Card
- 4% cash-back on eligible gas and EV charging purchases for the first $7,000 per year and then 1% thereafter
- 3% cash-back on restaurants and eligible travel purchases
- 2% cash-back on all other purchases from Costco and Costco.com
- 1% cash-back on all other purchases
- No foreign transaction fees on purchases
While there is no annual fee, you are required to have a paid Costco membership.
Costco members can accumulate rewards throughout the calendar year. Rewards are paid out annually in the form of a voucher and can only be redeemed for cash or merchandise at U.S. Costco warehouses.
Bottom Line: While it may make sense to select a card that rewards well in your biggest spending category, be sure to look at the entire card package to review how the card rewards your overall spending mix, whether redemption options align with your preferences, and if the associated travel/shopping benefits deliver additional value.
The 3 Best No-Annual-Fee Business Credit Cards
Earning rewards on every business purchase is a smart move that can affect your business bottom line. Image Credit: Brooke Lark via Unsplash
When you’re operating a business, cash-back can make a viable difference to your bottom line.
Top Reasons To Get the Card
- A welcome bonus worth hundreds of dollars
- 5% and 2% cash-back bonus earning categories for business purchases
- 5% cash-back at office supply stores and on internet, cable and phone services (up to $25,000 in spend)
- 2% cash-back at gas stations and restaurants (up to $25,000 in spend)
- Travel and purchase protections and benefits
Small businesses face unique challenges. The Ink Business Cash card can help manage those challenges by saving you interest on purchases in the first 12 months after card approval and providing valuable benefits and protections without an annual fee.
You’ll also find it easy to earn lots of rewards on your business purchases with bonus earning categories. Rewards can be redeemed for travel or cash-back that can make a positive impact on your business bottom line.
Note that Ultimate Rewards points earned on the card can be redeemed for 1 cent each. They can also be transferred to premium Chase cards for up to 50% more in travel value.
Selecting a card that earns valuable Ultimate Rewards points is always a positive move, especially if you’re looking for your first business credit card.
Top Reasons To Get the Card
- Welcome bonus worth hundreds of dollars
- Unlimited 1.5% cash-back on every purchase
- Travel and shopping protections and benefits
Earning a solid 1.5% cash-back on every purchase, regardless of the category, makes earning lots of rewards an easy task. You can then redeem those rewards for what your business needs most — cash-back, travel, gift cards, or even Amazon purchases.
As with several other cards mentioned here, points earned on the Ink Business Unlimited card can be transferred to premium Chase cards for increased redemption value.
The card also comes with valuable travel benefits such as primary car rental insurance, roadside dispatch, and travel emergency assistance. Additionally, you’ll have shopping benefits such as purchase protection and extended warranty.
It’s worth noting that, while the card does not have an annual fee, the card does charge foreign transaction fees.
Explore the benefits of the Ink Business Unlimited card to see if this card is right for your business.
Want simplicity in earnings from your business credit card? If you’re a busy small business owner, the Amex Blue Business Plus card could be that simple solution.
Top Reason To Get the Card
- 2x Membership Rewards points on everyday business purchases, up to $50,000 in purchases per year, then 1x thereafter
If your small business is spending $50,000 or less per year, the Amex Blue Business Plus card could be an appropriate starter card. Spending $50,000 per year will earn 100,000 Membership Rewards points per year.
If you spend a lot in any specific category, you will likely earn more rewards with a business credit card that offers higher rewards in that specific category, even if you have to pay an annual fee.
Methodology – How We Selected Our List of the Best No-Annual-Fee Credit Cards
At Upgraded Points, we select the best no-annual-fee credit cards based on how much value the card can provide to cardholders. To do this, we evaluate every factor that makes up a card, including its benefits, earnings structure, welcome bonus, redemption value/rewards program, fees, and more.
Here is some insight into our thought process when selecting the best no-annual-fee cards:
Associated Benefits
Annual fee cards aren’t usually known for offering many benefits, so anytime they do, that is a big win in our book. Given that, we give extra points to no-annual-fee cards that offer benefits like purchase protection, extended warranty protection, travel insurance, and more.
Earnings Structure
Every good credit card offers strong rewards. For a no-annual-fee card to be worth holding, it needs to either offer solid rewards on all purchases or offer users plenty of value in select bonus categories.
Welcome Bonuses
Not all no-annual-fee cards offer a welcome bonus, but those that do provide a great opportunity to quickly earn a large chunk of rewards. Given that welcome bonuses are a 1-time bonus, they do play a factor in how we evaluate cards because of how lucrative these bonuses can be.
We’ll provide you with the current welcome bonus information available to us for each card, but we also encourage you to confirm the welcome bonus, check for elevated promotional offers, and review any earnings offered before applying for any card.
Fees
Aside from not charging an annual fee, we still weigh all of the other fees associated with a credit card. These can include foreign transaction fees, late payment fees, and more.
Redemption Value
At Upgraded Points, we prefer cards that earn flexible rewards, as they offer more redemption options. The best no-annual-fee cards provide the option to redeem points directly for travel, cash-back, statement credits, and more.
Hot Tip: While the most desirable benefits and features of a card will vary by person, our holistic approach gives readers a full picture of what they can expect from every card we review. To learn more about how we review cards, read through our designated methodology page.
Who Should Get a No-Annual-Fee Credit Card?
People looking to earn credit card rewards for their purchases, but who aren’t interested in paying any sort of annual fee, should consider getting a no-annual-fee credit card.
While it is true that many cards with annual fees offer significantly more benefits than those without, you should consider how often you think you’d actually use those benefits. That will help you determine whether or not a card that charges an annual fee is worth adding to your wallet.
For instance, a travel rewards card that charges an annual fee and offers travel-related benefits won’t make much sense for you if you don’t travel very often. On the other hand, if you’re simply looking for a card that can help you earn rewards on your purchases and offers consumer protections, a no-annual-fee credit card might be a perfect fit for you.
How To Choose the Best No-Annual-Fee Card
The “best” no-annual-fee card will vary from person to person based on the benefits you need. First, you should narrow down your options by deciding whether you’d like a card that earns cash-back rewards, travel rewards, or flexible rewards.
From there, you can take a look at the card’s bonus categories, and then determine which ones would best fit your spending habits. Do you spend a lot each month on certain categories such as dining or groceries? Then you might want to select a card that offers bonus categories on those purchases. If not, then you could opt for a card that offers a flat rewards rate on all purchases.
After you’ve settled those 2 items, the next deciding factor should be the type of benefits you are looking for in a card. Do you want a card that offers purchase protection, travel insurance, or some other type of benefit?
After you’ve considered all of those parameters, you should be able to narrow down a pretty short list of which no-annual-fee cards would be best for you.
Are Credit Cards With Annual Fees Worth It?
Determining whether or not a card with annual fees is worth it depends on your individual needs from a credit card. Credit cards with annual fees can offer lots of great benefits like statement credits, airport lounge access, expedited security, increased bonus categories, and more. You’ll want to determine how much value you think you’ll get out of the benefits and rewards each year, then compare that to the annual fee you’d pay.
If the value you’d receive exceeds the cost of the annual fee, then it would be worth it. If the benefits wouldn’t be that useful to you, then you should stick with a no-annual-fee card.
Can You Get a Credit Card Company To Waive the Annual Fee?
If you hold a credit card that charges an annual fee but feel like you’re not getting enough value from it, you can call the issuer to ask for a retention offer or even waive the annual fee.
To help convince you to keep the card, the issuer might offer to waive the annual fee for a year, reduce the annual fee, or offer some other sort of compensation like points or a statement credit. However, the issuer may not offer any retention offer at all.
Final Thoughts
No-annual-fee credit cards make great starter cards that you can hold for many years. However, most no-annual-fee credit cards do not offer the level of benefits, earning potential, or flexible redemption options that might come with cards that do charge annual fees.
Of course, finding a balance between paying annual fees, earning rewards, and utilizing card benefits will depend on your own personal preferences.
A no-annual-fee card can certainly earn a place in your wallet if any of its attributes add value you can use.
The information regarding the U.S. Bank Cash+® Visa Signature® Card, and Capital One SavorOne Rewards Credit Card was independently collected by Upgraded Points and was not provided nor reviewed by the issuer.
For rates and fees of The Blue Business® Plus Credit Card from American Express, click here.
