Best Credit Cards With No Annual Fee

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.

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.

Credit cards with annual fees are worth it when they save you more than they cost you, especially if your savings exceed what the best no annual fee credit cards available to you would provide. Paying an annual fee on a credit card can unlock bigger initial rewards bonuses, higher ongoing earning rates, and a variety of additional benefits. But you need to make sure you get your money’s worth and actually use the perks you’re paying extra for. If you don't, a credit card that does not charge annual fees may offer better long-term value.

Times When a Credit Card Annual Fee Is Worth It

When you can spend enough on the card to earn rewards worth more than the annual fee

Rewards can come as cash back, points, or miles, and if you spend enough to earn lots of them, the rewards alone can pay for your annual fee. If your card gives 1.5% back on purchases and the annual fee is $95, for instance, you’ll have to spend about $6,350 annually to break even with ongoing rewards alone.

When the perks your card offers are things you’re going to buy and use anyway

Annual travel credits, airport lounge memberships, TSA Pre-Check application credits, and free hotel nights are a few high-value perks offered by some credit cards. If you were planning to spend money on these things anyway, the annual fee on a credit card might start to seem like a deal.

When it would save you more than the best card with no annual fee

If you crunch the numbers and determine that a card with an annual fee would save you the most money at the end of the day, even considering the fixed yearly cost, then go for it. Just make sure to reevaluate if your spending or payment plans change.

To figure out if a credit card’s annual fee is going to be worth paying, consider how much you spend – overall and in the card’s major rewards categories. Then calculate how much you would earn with each card’s rewards structure. And evaluate the practical value of the card’s other perks – it’s good to be realistic about how often you’ll use them. Finally, subtract the annual fee. The remainder is how much the card could save you, assuming you pay the bill in full every month and avoid finance charges.

For personalized credit card recommendations, sign up for a WalletHub account, or use WalletHub’s CardAdvisor for a more general sense of what credit card you should get.

A good credit card that you can get with bad credit and $0 annual fees is the Capital One Platinum Secured Credit Card. This is a partially-secured credit card, ideal for people who want to build credit at a low cost; Capital One Platinum Secured has a $200 starting credit limit and requires a refundable security deposit of $49, $99 or $200.

Other good options are the U.S. Bank Secured Visa® Card and the Harley-Davidson® Secured Credit Card.

The best credit card for fair credit with no annual fee is the Upgrade Visa® Card with Cash Rewards because it offers unlimited 1.5% cash back on all purchases (after you pay the bill) and has a $0 annual fee. Applicants with fair credit will also have good approval odds for the Upgrade Credit Card, which can be used anywhere Visa is accepted. 

Best Credit Cards for Fair Credit with No Annual Fee

• Best Overall: Upgrade Visa® Card with Cash Rewards
• Cash Back Rewards: Petal® 2 Visa® Credit Card
• Easy Approval: Capital One Platinum Credit Card
• Grocery Shopping: Capital One Walmart Rewards® Mastercard®
• Amazon Prime: Amazon.com Store Card
• Target Purchases: Target Credit Card

Most credit cards for fair credit with no annual fee are store cards. You can only use them at a particular retailer, but some do still give excellent rewards. For example, the Amazon.com Store Card offers 5% back on all Amazon purchases. But you have to be an Amazon Prime member to get that perk.

The best credit card for a signup bonus with no annual fee is Chase Freedom Unlimited®, which has a $0 annual fee and gives 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).

Best Credit Card Signup Bonuses with No Annual Fee

There are larger signup bonuses out there, but you may have to pay an annual fee to get them. You could still come out ahead though. The best approach is to compare the best credit card bonus offers after subtracting any fees they may charge. You can then pick the card that will save you the most at the end of the day.

Yes, there are several elite credit cards with no annual fee, the best of which is the Capital One VentureOne Rewards Credit Card. This card requires a minimum of good credit for approval and offers perks such as 1.25 - 5 miles per $1 spent on purchases and an initial bonus of 20,000 miles for spending $500 in the first 3 months of account opening.

Here are some of the best elite credit cards with no annual fee:

The Capital One VentureOne is an elite $0 annual fee credit card due to its ample rewards. It gives 20,000 miles for spending $500 in the first 3 months. Plus, you get 5 miles per $1 spent on hotels and rental cars booked through Capital One Travel, and 1.25 miles per $1 on all other purchases. Capital One VentureOne comes with intro APRs of 0% for 15 months on purchases and balance transfers. Its regular APR is 15.24% - 25.24% (V) and the balance transfer fee is 3%. Good credit is required.

The Citi Double Cash Card is an elite $0 annual fee credit card because it gives one of the highest cash back rates on the market for all purchases: 2% cash back when you pay at least the minimum due on time. And there’s a 0% for 18 months intro APR for balance transfers. There is a 3% intro fee ($5 min) for each transfer in first 4 months, after that 5% ($5 min) for each transfer. This card’s regular APR is 14.74% - 24.74% (V). Good credit is required.

The U.S. Bank Platinum is elite because of its very long 0% intro APR period. You get a 0% APR on purchases and balance transfers for 20 billing cycles. The card’s regular APR is 15.24% - 25.24% (V). Transfers must be requested in the first 60 days to get the 0% rate, and there’s a 3% (min $5) transfer fee. You also get free cell phone protection. Good credit is required.

The Amex EveryDay card is elite because of its 0% intro APR for 15 months on purchases. Amex EveryDay’s regular APR is 13.74% - 24.74% (V). You can earn 2 points per $1 spent on travel booked through amextravel.com and at supermarkets (up to $6,000 per year), and 1 point per $1 spent on all other purchases. Using your card 20 times in a month earns you 20% more points. There’s also a welcome bonus of 10,000 points after spending $2,000 in the first 6 months. Good credit is required.

The Ink Cash is an elite $0 annual fee card because it has a lot of bonus categories. You get 1 - 5% cash back, depending on the type of purchase. You can also get an initial bonus of $750 for spending $7,500 in the first 3 months. There’s a 12 months intro APR on purchases. This card’s regular APR is 13.49% - 19.49% (V). You get employee cards at no cost. Good credit is required.

At the end of the day, elite and no annual fee are not always synonymous when it comes to credit cards. Cards with annual fees tend to offer more rewards and benefits. Generally, the higher the annual fee, the more rewards you get. Some of the most elite credit cards with fees include the Capital One Venture Rewards Credit Card and the Chase Sapphire Preferred® Card.

The best American Express cards with no annual fee offer valuable rewards, 0% introductory interest rates or both to people with good credit or better. In general, a card from American Express with no annual fee is ideal if you don’t expect to use your card enough to warrant paying for extra perks. Fortunately, there are plenty of no annual fee Amex offers to choose from (American Express is a WalletHub partner). To help point you in the right direction, WalletHub’s editors picked their favorites in a handful of popular usage categories.

Amex obviously doesn’t issue the only no annual fee credit cards on the market, so we recommend expanding your search to include offers from Visa, Mastercard and Discover. Once you identify the best offer for your needs, be it an American Express credit card with no annual fee or not, we will automatically redirect you to the respective issuer’s secure online application page.

Best American Express Credit Cards with No Annual Fee

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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).

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

The best secured credit card with no annual fee is the Discover it® Secured Credit Card because it gives 1 - 2% cash back on purchases and has a 0% foreign transaction fee to go along with its $0 annual fee. The Discover it® Secured Credit Card also matches 100% of the cash rewards a new cardholder earns the first year. And it reports to all 3 major credit bureaus each month.

Best Secured Credit Cards with No Annual Fee

As you can see, there are several really good secured credit cards with no annual fee, and they're available even to people whose credit is damaged. Any no annual fee secured credit card is an excellent way to start building up a positive payment history and rebuilding one's credit score.

Eventually, it will be easier to qualify for unsecured credit cards with better terms. But unsecured cards for people with poor credit almost always charge annual fees.