Writer: Eric Bank
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
Key Takeaways
Credit cards that don’t have annual fees can help you keep your money where it belongs — in your pocket. I recommend beginning with these options:
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Discover it® Cash Back: Best overall card. See rates & fees
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Bank of America® Customized Cash Rewards credit card: Best for earning a bonus when meeting initial spending requirement.
If you’re looking to get the most value from your spending, no-annual-fee credit cards can be a smart place to start. These cards give you many of the same perks as cards that charge annual fees, but without the recurring cost.
Whether you want to earn rewards, finance a purchase, or build credit, there’s an option worth considering. Below, we’ve highlighted our expert picks by category to help you find a card that fits your spending and credit history.
Best Overall | Cash Back | Travel | Rewards | Business | Student
Bad Credit | Fair Credit | No Credit | FAQs
Best Overall Cards With No Annual Fees
The Discover it® Cash Back card uses a quarterly system of revolving offers that lets you earn bonus cash back at different places throughout the year. All you have to do is activate the card each quarter to rack up cash back (up to the quarterly limit) at places like grocery stores, gas stations, restaurants, wholesale clubs, and more. You can use your rewards immediately at checkout on Amazon.com.
Your cash back never expires, and you can redeem your rewards whenever you want, in any amount. This card is ideal for the person seeking robust cash rewards while also looking to save money on fees and interest. Discover offers an impressive introductory APR time period on both purchases and balance transfers. Please keep in mind, though, that the regular APR will apply after the introductory period ends.
Moreover, your APR won’t go up if your payment is late. When you sign up, Discover will alert you for free if your Social Security number pops up on any of the thousands of risky websites it monitors.
- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
- Earn 6% cash back for the first year in the category of your choice. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category.
- Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.
- No annual fee and cash rewards don’t expire as long as your account remains open.
- Turn daily purchases into everyday wins. Simply use your Customized Cash Rewards credit card for the things you already buy – from gifts to groceries – BofA Rewards™ members earn more cash back.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 17.74% – 27.74% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 5%. Balance transfers may not be used to pay any account provided by Bank of America.
- This offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.
Additional Disclosure: Bank of America is a CardRates advertiser.
The Bank of America® Customized Cash Rewards credit card earns its place among the best cards with no annual fee because you can tailor its rewards to your spending. Choose a category such as online shopping, dining, or gas and EV charging, and change it once each calendar month as your needs shift.
I especially like that you don’t have to pay an annual fee to get meaningful rewards on everyday expenses. Cash rewards don’t expire while your account remains open, and you can redeem any amount for a statement credit, making the card easy to use without saving up for a particular redemption. Its quarterly spending cap is the main tradeoff, but for someone whose purchases fit within that limit, the combination of flexible categories and simple redemptions offers strong ongoing value.
For those with good to excellent credit, the Capital One VentureOne Rewards Credit Card offers 1.25 miles on everyday purchases, with no annual limit. Plus, miles earned don’t expire for the life of the account and are easy to redeem. You can also transfer your miles to any of Capital One’s available loyalty programs from airlines such as Air Canada, Air France KLM, and Qantas.
The card delivers many other benefits, beginning with no foreign transaction fees, 24-hour travel assistance services, auto rental collision damage waiver, travel accident insurance, and extended warranty protection. You can manage your account on the Capital One mobile app, featuring fingerprint sign-in, monitor your credit with the CreditWise app, and receive alerts from the Eno® intelligence assistant that also lets you make online purchases using virtual card numbers for added security. Speaking of security, you’re covered by $0 fraud liability and card lock on stolen or lost cards.
Best “Cash Back” Card With No Annual Fee
Is there any reward more versatile than cold, hard cash? When you activate the quarterly revolving system from the Discover it® Cash Back, you earn bonus cash back up to the quarterly limit. The revolving categories include restaurants, gas stations, and grocery stores, as well as immediate redemption at Amazon.com checkout. Your cash rewards never expire and can be redeemed at any time.
This card is serious about saving you money. With its introductory APR terms and cash back potential, this card is perfect for the frequent shopper trying to make the most bang for their buck. For added peace of mind, Discover monitors your Social Security number should it appear on any of the risky websites it scrutinizes. Again, the regular APR will apply after the introductory term ends.
Best “Travel” Card With No Annual Fee
The Capital One VentureOne Rewards Credit Card is our top travel card. Capital One works directly with airline loyalty programs, including Qantas, Air France KLM, and Air Canada, that will accept your miles. The card delivers 1.25 miles per dollar spent on all other purchases without any annual limits.
The Capital One VentureOne Rewards Credit Card boasts an intro rate of 0% for 15 months on new purchases and a 18.74% - 28.74% (Variable) APR afterward. Capital One offers several features to make this card more secure and convenient, including credit monitoring via CreditWise, fingerprint security on its mobile app, $0 fraud liability protection, and virtual card generation for online purchases using the Eno® intelligent assistant. Other benefits include collision damage waivers on car rentals, extended warranty protection, and travel accident insurance.
Best “Rewards” Card With No Annual Fee
The Bank of America® Customized Cash Rewards credit card earns top marks for its rewards, starting with customizable cash back rewards tailored to your spending.
- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
- Earn 6% cash back for the first year in the category of your choice. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category.
- Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.
- No annual fee and cash rewards don’t expire as long as your account remains open.
- Turn daily purchases into everyday wins. Simply use your Customized Cash Rewards credit card for the things you already buy - from gifts to groceries - BofA Rewards™ members earn more cash back.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 17.74% - 27.74% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 5%. Balance transfers may not be used to pay any account provided by Bank of America.
- This offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.
Additional Disclosure: Bank of America is a CardRates advertiser.
There are also promotional 0% interest rates that can help make carrying this card more affordable. Other benefits include 24/7 fraud monitoring, rapid alerts for suspicious or irregular activity, zero liability for unauthorized transactions, and your rewards never expire.
Best “Business” Card With No Annual Fee
If you are a small business owner, the Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card stands out among business cards with no annual fee because its rewards can match your company’s expenses, including gas and EV charging, office supplies, travel, computer services, and dining.
Additional Disclosure: Bank of America is a CardRates advertiser.
I especially like the ability to earn rewards on employee purchases without paying extra for employee cards. It’s also a strong option for businesses that qualify for Preferred Rewards for Business: Platinum Honors members can earn 5.25% back in their chosen category, subject to the same spending cap.
That combination of customizable rewards, free employee cards, and potential banking bonuses makes it a compelling pick for business owners who want to keep annual costs down.
Best “Student” Card With No Annual Fee
Discover knows that students often have a scant credit history, and has structured the Discover it® Student Cash Back card as the ideal first credit card for your college years.
The card pays bonus cash back, up to a quarterly maximum, on different places like restaurants, grocery stores, and gas stations that rotate every quarter — all you have to do is activate the cash back each quarter. You’ll still earn a lesser cash back rate for all other purchases you make with the card.
The card delivers additional student-friendly benefits, including immediate on/off account switching, unauthorized-use alerts, and free monthly access to your FICO Credit Score, as well as U.S.-based customer service.
Best Card for “Bad Credit” With No Annual Fee
Capital One has designed the Capital One Platinum Secured Credit Card to help you rebuild your credit score. Its $0 annual fee helps you take control of your credit when you use the card responsibly. You secure the card with a required, refundable security deposit of $49, $99, or $200, depending upon your creditworthiness.
Once you make the minimum required deposit, you’ll get a starting credit line of $200. Put down a larger deposit, and you may qualify for a higher credit line. You’ll be automatically considered for a higher credit line in as little as six months.
New cardmembers will receive a 29.24% (Variable) APR. You can personalize your payments by selecting a monthly due date and payment method — online, check, or at your local branch. Other card benefits include instant purchase notifications on your Capital One Mobile App, email, or text account alerts, fraud coverage, card lock, virtual card numbers from ENO®, automatic monthly payments, and 24/7 customer service.
You also receive travel accident insurance, extended warranties on purchases, an auto rental collision damage waiver, and 24-hour travel assistance services. There are no foreign transaction fees, and you can monitor your credit for free with CreditWise® from Capital One.
Best Card for “Fair Credit” With No Annual Fee
If your credit score is fair to average, consider the Capital One Platinum Credit Card. You’ll be automatically considered for a higher credit line in as little as six months.
The regular APR for new cardmembers is 29.24% (Variable), depending upon your creditworthiness and the prime rate. There are no foreign transaction fees, and the card comes with impressive features, such as SureSwipe/TouchID for fingerprint or customized pattern sign-in on the Capital One Mobile App.
Account management is easy, as you receive personalized account alerts, view monthly recurring transactions, autopay your monthly bill, add authorized users, and access 24/7 customer service. You also receive a slew of Capital One card benefits for retail, travel, security, and digital services.
Best Card for “No Credit” With No Annual Fee
Capital One is a reputable global bank that offers its customers a slew of perks and conveniences, so it’s no wonder the convenient Capital One Platinum Credit Card is our top choice for those with fair credit, limited credit, and no credit history at all.
You’ll receive free credit monitoring with CreditWise from Capital One, and ENO® acts as your intelligent assistant, answering your questions, sending you alerts, creating virtual card numbers for online purchases, and reporting your account status 24/7. That’s a lot of technology-forward features for no annual fee.
The card comes with many other conveniences, like setting up automatic monthly account payments on the due date of your choosing. You’ll receive $0 fraud liability coverage if your card is stolen or lost, and you can instantly lock the card if you misplace it. Security alerts can be delivered via your phone, email, or text message.
In travel and retail settings, the card delivers 24-hour travel assistance services, travel accident insurance, auto rental collision damage waiver, and extended warranty protection coverage. There are no foreign transaction fees when you use the card outside of the United States.
How Do I Choose the Best No-Annual-Fee Credit Card?
Start with how you plan to use the card. If you pay your balance in full each month, look for rewards that match your everyday spending, such as groceries, gas, or dining. A flat-rate cash back card may be a better fit if you prefer to keep things simple.
If you need time to pay off a purchase or transfer existing debt, compare introductory APR offers and balance transfer fees. No annual fee doesn’t mean the card is free to use, so check its regular APR and other fees before applying.
Can I Switch My Current Card to One With No Annual Fee?
You may be able to switch to a no-annual-fee card from the same issuer through a product change, sometimes called a downgrade. Contact your issuer to ask which options are available and whether the switch would preserve your account history and credit limit.
Before making the change, ask what happens to your rewards, benefits, and any annual fee you’ve already paid. A product change typically doesn’t require a new application, but you generally won’t qualify for the signup bonus offered to new cardholders.
What are the Pros & Cons of Credit Cards With No Annual Fees?
You might think that, if everything else were equal, people would always choose no-annual-fee credit cards and keep more money in their pockets. But here’s the catch: everything else usually isn’t equal.
Cards with annual fees may offer more generous rewards and more lavish benefits. Here’s what to weigh before choosing.
Pros
One less expense: You don’t have to earn enough rewards or use enough benefits to offset an annual fee. That makes these cards easy to justify, even if you use them only occasionally.
Rewards without an annual charge: Many no-annual-fee cards offer cash back, travel rewards, and signup bonuses. You can get meaningful value without paying for the privilege.
An affordable way to build credit: Several no-annual-fee cards are available to people with limited or poor credit. Responsible use can help you build or rebuild your credit while keeping costs down.
Cons
Fewer premium perks: No-annual-fee cards are less likely to offer extras such as airport lounge access, substantial travel credits, or complimentary hotel status.
Potentially lower rewards: An annual-fee card may earn more on your biggest spending categories or offer a larger signup bonus. If that extra value outweighs the fee, paying it could make sense.
Other costs still apply: No annual fee doesn’t mean no fees at all. Interest, late fees, balance transfer fees, and foreign transaction fees may still apply, depending on the card.
Is It Worth Getting a Credit Card With an Annual Fee?
Credit cards with annual fees have to earn their keep by delivering more value than no-annual-fee cards. Here’s a look at some of the benefits that can come with paying an annual fee:
Big spenders get big rewards: You may find the annual fee a small change compared to the generous and unlimited rewards available from many annual-fee credit cards. Those rewards will probably pay for fees with plenty to spare. You can select a credit card that matches your spending patterns, such as one offering travel miles or hotel discounts.
Robust signup bonuses: The signup bonuses are almost always better on credit cards with annual fees. We see signup bonuses on these cards of 50,000 miles or more, and cash back bonuses of $600 or more. Naturally, the first three-month spending requirements to qualify for the signup bonus from these cards are also higher.
Expensive cards offer more perks: If you have the need for a personal concierge, automatic upgrades to flights and hotels, and discounts on cruises or luxury car rentals, you may be tempted to plunk down a three- or four-figure annual fee to obtain a premium credit card. Some of these cards are so exclusive that you can only get them by invitation. If you don’t settle for anything but the best, these cards are for you.
Prestige!: Let’s just stipulate that certain people on this planet like to impress the rest of us with their wealth, power, and prestige. What better way to subtly hammer that home than with a credit card that charges a hefty annual fee? Hey, whatever floats your boat.
Saving on Fees Means More Money in Your Pocket
With a no-annual-fee credit card, you avoid a yearly charge just for keeping the account open. As we’ve seen, many of these cards offer good benefits and easy access, even if your credit is poor or non-existent. There are cards geared toward travelers, students, businesses, or just ordinary consumers.
For many people, credit cards with no annual fee are a perfect combination of low cost and high value, as our list of the top cards vividly reveals.
Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on CardRates.com are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on CardRates.com will direct you to the issuer's website, where you can review the current terms and conditions of the offer.
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