Applying for a credit card with no annual fee may seem obvious, but some of the best credit cards with annual fees provide rewards and benefits that far outweigh their yearly prices.
However, if you plan to use your credit card sparingly, and you don’t care about rewards or simply don’t want to pay a yearly fee, credit cards with no annual fees can run the gamut of perks and benefits. Some provide welcome bonuses and cash back, while others offer travel points, 0% intro APR or rewards for online shopping.
Discover our top partner offers for best no-annual-fee credit cards below. We’ll periodically update these offers as features and terms change.
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Best overall credit card with no annual fee
The Chase Freedom Unlimited® card wins the spot for best no-annual-fee credit cards for a few reasons. This card offers an extensive cash-back rewards program, allowing you to earn more rewards on eligible travel, dining and drugstore purchases than you could with the other best no-annual-fee cards.
The welcome bonus adds even more cash back. For the first year, you earn an additional 1.5% cash back on up to $20,000 in purchases, for up to $300. This card also offers a 15-month 0% introductory APR on purchases and balance transfers (15.24% to 23.99% variable APR thereafter).
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Best travel card with no annual fee
With the Bank of America® Travel Rewards credit card*, you earn 1.5 points (equivalent to 1.5 cents) for every dollar spent on any purchase, anywhere. These points can be redeemed for statement credits against travel expenses like hotels, flights and restaurants, with no restrictions on airlines, websites or dates. You’ll also enjoy no foreign transaction fees, so anywhere you travel to, you can use this credit card without penalty. The sign-on bonus and introductory APR make this a well-rounded everyday credit card, as well.
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Best intro APR card with no annual fee
The U.S. Bank Visa® Platinum Card is a no-frills card with no annual fee that won’t earn you rewards, but its long introductory APR period on both purchases and balance transfers makes it an excellent card for anyone looking to pay down debt. The balance transfer fees are on par with similar cards, but the 20-billing-cycle introductory 0% APR time frame on purchases and balance transfers can offer you extra time to pay down other credit card debt, interest-free (14.74% to 24.74% variable APR thereafter).
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Best customized rewards with no annual fee
The Bank of America® Customized Cash Rewards credit card* offers a lot of flexibility. Unlike most credit cards where you can choose a category, this one doesn’t rotate — making it a valuable tool you can use all year long. You can earn 3% cash back on the category of your choice, on up to $2,500 of expenditure per quarter in combined 3% and 2% categories, then 1% thereafter. The default category selection is gas, and for all others you must manually switch the selection through your account. Alternatively, this card would also be selected as the best no-annual-fee credit card for online shopping, as that is another category you can manually choose.
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Best flat-rate credit card with no annual fee
The Wells Fargo Active Cash Card offers an unlimited 2% flat cash rewards structure, making this a simple but powerful card. There’s no worrying about reward limits or bonus categories — you’ll earn a flat rewards rate on eligible everyday purchases. Plus, if you spend $1,000 in purchases in the first three months of opening your account, you’ll earn a $200 cash rewards welcome bonus. You can also take advantage of the low introductory APR on purchases and qualifying balance transfers, as this is a well-rounded card.
Check out our full review of the Wells Fargo Active Cash Card for more details.
FAQs
What does ‘no annual fee’ mean?
It means the card issuer will not charge you a yearly cardholder fee. Cards with no annual fees may have other fees though — such as security deposits, transaction fees, late payment fees and balance transfer fees. Many different types of cards offer no annual fee, such as most student credit cards.
What else should I consider about credit cards with no annual fees?
If you use your card more and want access to better incentives, it is easy to make the switch. Alex Miller, CEO and founder of Upgraded Points, said, “No-annual-fee credit cards tend to have a ‘sister’ card with an annual fee. You can upgrade from a no-annual-fee to an annual fee card, usually with little to no hassle.” With these upgraded cards, you can typically earn even more rewards.
Are annual-fee cards ever worth it?
Sometimes. If you’re new to using credit cards or do not plan to charge many expenses, then having a card with an annual fee will not be in your best interest since you won’t take advantage of the incentives enough to justify the cost.
Meanwhile, there are instances where the opposite applies. “Annual-fee cards are worth it for people who spend more money because they have much higher bonuses on spending categories,” said John Taylor Garner, CEO and founder of Card Curator. “And their points/miles are worth a lot more, especially when redeemed for travel.”
Our methodology
CNET reviews credit cards by exhaustively comparing them across set criteria developed for each major category, including cash-back, welcome bonus, travel rewards and balance transfer. We take into consideration the typical spending behavior of a range of consumer profiles — with the understanding that everyone’s financial situation is different — and the designated function of a card.
For cash-back credit cards, for example, key factors include the annual fee, the “welcome bonus” and the cash-back rate (or rates, if they differ by spending category). For rewards and miles cards, we calculate and weigh the net monetary value of a card’s respective perks. And with balance transfer credit cards, we analyze specs such as the duration of the introductory 0% APR period and the balance transfer fee, while acknowledging secondary factors such as the standard APR and the length of time you have to make a balance transfer after you open the account.
*All information about the Bank of America Customized Cash Rewards credit card and the Bank of America Travel Rewards credit card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
