What are the best credit cards for excellent credit with no annual fee?

The best cash back credit card with no annual fee is Chase Freedom Unlimited®. In addition to a $0 annual fee, Chase Freedom Unlimited offers an initial bonus of as well as 1.5 - 5% cash back on purchases. More specifically, cardholders earn 5% cash back on travel through Chase, 3% back at restaurants and drugstores, and 1.5% back on all other purchases (plus an additional 1.5% cash back on everything, up to $20,000 spent the first year).… read full answer

Best Credit Cards with No Annual Fee and Cash Back

Cash back gives flexibility and freedom when it comes to earning and using rewards. You’ll get a percentage back on every purchase, and you can spend your rewards however you like. Below, you can get an even better sense of how much the top cash back credit cards with no annual fee could save you.

Best Cash Back Credit Cards with No Annual Fee Compared

No annual fee means you will not be charged every year for using your credit card. You’ll save anywhere from tens to hundreds of dollars in annual fees, depending on the credit card.

Annual fees are often tied to high-end rewards cards, travel rewards cards, business cards and secured cards for people with fair, limited, or bad credit. The annual fee helps the issue recoup the costs of rewards and benefits the card offers.… read full answer

However, there are a number of no annual fee credit cards that offer rewards such as cash back or rewards earned on purchases. But you will need good credit or better to qualify for most of these cards.

A good go-between is a credit card that waives the annual fee for the first year you have the card. After the first year, the fee will be charged to your account. If, after that first 12 months, you’ve determined that having the card isn’t beneficial, you can close the account. Keep in mind that closing a credit card account, especially after only a year, could have a negative effect on your credit score. In addition, when your card is closed, you will be unable to redeem any rewards you’ve earned with the card.

Whether you should have a no annual fee card depends on your spending habits and preferences. If you’ll earn enough in rewards to warrant the cost of an annual fee, it might be worth the investment. But if you know you won’t make too many purchases over the course of a year, your best bet would be to stick with the no annual fee card.

If getting the best credit card is your only concern, there’s probably no reason you should wait until you have excellent credit. Cards for good credit, such as the Capital One Venture, Citi Double Cash, Discover It, and others, tend to be just as attractive as cards for excellent credit. The possible exception would be cards that have especially long 0% offers or particularly good travel bonuses. And if you plan to apply for a mortgage, auto loan, personal loan, etc., in the next six months or so, holding off could be the right move. Applying for any card lowers your credit score temporarily. And you want your score to be in the best shape possible when you try to get a loan.… read full answer

Otherwise, there are plenty of reasons to go for a card for good credit rather than waiting until you have excellent credit.

Why you should get/not get a credit card for good credit:

• Cards for good credit are just as attractive. Cards for good credit can give you high rewards and low fees. With excellent credit, you may get a larger initial bonus, a longer introductory 0% APR and more rewards. But those cards tend to come with high annual fees.
• You’re about to take out a major loan. Applying for a credit card will generate a hard inquiry, which temporarily lowers your credit score. You want your score in the best shape possible before a loan. So you may want to wait before applying.
• Your credit rating is close to excellent. Applying for too many cards in a short time frame could cause your credit score to dip. It’s best not to apply for more than one card a year. So if you’re very close to excellent credit, it’s probably to your advantage to wait a few more months.
• Faster credit building. A new credit card account will increase your overall credit limit, thus lowering your credit utilization. This can help you build up toward excellent credit even faster.
• There’s an offer you can’t refuse. An attractive sign up bonus or rewards earning rate may be available only for a limited time. If there’s a card for good credit with a big bonus, it may be worth it to apply. Avoid overspending for the sole purpose of accumulating rewards.

It may not take long for you to graduate from good to excellent credit, if you’re close to begin with. It could happen the next time you make an on-time bill payment or if you reduce your credit utilization. You just have to decide whether waiting is worth it in your particular situation. And monitoring your free daily credit score updates on WalletHub will help you make the right choice.