No Annual Fee Credit Cards

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How to choose a card with no annual fee

By: Connor Wrenn

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Let’s face it: Fees can be a bit of a bummer. Sometimes, you don’t want to worry that your rewards program pays you back enough to justify the annual fee. If that’s you, you can still find fantastic credit benefits on a card without an annual fee.

Fee terms
When looking at cards without an annual fee, you’ll find two different options. The first is straightforward; no fee ever, as long as you have the card.  The second option is a no-fee introductory period. These cards waive a fee in the first year, but they will charge you one in the following years. Read the fine print carefully.

Cash back rewards
The most common rewards program offered without a fee is a cash back rewards program. So, if you’re looking for a simpler rewards system that still offers flexibility, you’re in luck! To start, decide what kind of program you want. Do you want a no-fuss system with a single cash back rate across all purchases? Or do you want to play the rewards category game to earn more rewards? If you choose the latter, try to budget out how much, on average, you spend on certain rewards categories. These can include (but aren’t limited to) gas, groceries and restaurants. Then, find cards that give you the most cash back where you spend the most money. If math isn’t your strong suit, use our Cash back or low interest card calculator.

Certain cash back programs will offer a bonus amount if you spent an allotted amount with the first few months as a new cardholder. So, you should also calculate your total credit spending. This number determines which sign-up bonuses for which you’ll qualify.

Travel rewards
Annual fees are common on travel cards, but you can also find a few travel rewards cards without one. Much like the cash back programs, you’ll want to determine how much you spend on common rewards categories, then find the card that best optimizes rewards for your lifestyle. For less fuss, you can find travel rewards programs with a flat rewards percentage across all categories. However, the right rewards program can easily make up for the fee.

Oh, and if your travel aspirations included international destinations, make sure to pick up a card with no foreign transaction fee.

Some issuers will waive fee for good customers who spend a lot and pay on time. Here are some other tips to negotiate your annual fee.

Want some more information?
Check out our reviews for cash back cards and travel rewards cards to see some of the strongest offers. Just make sure you check the annual fee on each one!