No Annual Fee Credit Cards

No annual fee means you will not be charged every year for using your credit card. You will save anywhere from $25 to $550 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 issuer 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.

Elite credit cards with no annual fee include Capital One VentureOne, Citi Double Cash and Amex EveryDay. These high-end cards require a minimum of good credit for approval and offer perks such as high everyday earning rates, big initial bonuses and 0% introductory APRs. VentureOne gives 1.25 miles per $1 on all purchases and a 20,000-point initial bonus. Citi Double Cash gives 2% cash back on all purchases, plus 0% intro rate on balance transfers for 18 months. And Amex EveryDay offers 0% for 15 months on purchases.  

Other elite credit cards with no annual fee include Bank of America Travel Rewards and Chase Ink Business Cash. They too offer benefits worthy of elite status. They also have strict credit requirements. You’ll need a 700+ credit score to even be considered for most of these cards.

Top 5 Elite Credit Cards with No Annual Fee:

• Travel: Capital One VentureOne Rewards
• Cash Back: Citi Double Cash
• Balance Transfer: U.S. Bank Platinum
• 0% Purchases: Amex EveryDay
• Business: Chase Ink Business Cash

​​​​​​​Closer Look: Elite Travel Cards with No Annual Fee

Bank of America Travel Rewards is an elite credit card with no annual fee because it has a large bonus and high earning rates. You get 20,000 bonus points when you spend $1,000 in your first 90 days. That ’s worth a $200 statement credit toward travel. You also earn 1.5 points per $1 on all purchases. And people with a Bank of America checking or savings account get an additional 10% per $1 spent on all purchases. Excellent credit is required.

Capital One VentureOne Rewards is an elite no annual fee credit card due to its ample rewards. It gives 20,000 bonus miles when you spend $1,000 in your first 3 months. That’s worth $200 toward travel. And you get 1.25 miles per $1 on all purchases. Good credit is required.

Elite Cash Back Cards with No Annual Fee

Chase Freedom Unlimited is an elite no annual fee card because of its bonus and 0% APR. You get a $150 cash bonus when you spend $500 in your first 3 months. And you earn 1.5% cash back on all purchases. There’s a 0% APR for 15 months on purchases and balance transfers (5% transfer fee). Excellent credit is required.

Citi Double Cash 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% when you pay your bill in full. And there’s an intro APR of 0% APR for 18 months on purchases and balance transfers (5% transfer fee). Good credit is required.

Elite Business Card with No Annual Fee

Chase Ink Business Cash is an elite no fee card because it has a lot of bonus categories. You get 5% cash back, up to $25,000 spent per year, on purchases at office supply stores and internet, cable and phone services. There’s 2% cash back, up to $25,000 spent per year, on gas and dining and 1% on all other purchases. You get a $500 cash back bonus when you spend $3,000 in your first 3 months. There’s a 0% APR for 12 months on purchases and balance transfers (5% transfer fee). You get employee cards at no cost. Excellent credit is required.

Elite 0% APR Cards with No Annual Fee

U.S. Bank Visa Platinum is elite because of its very long 0% APR period. You get 0% on purchases and balance transfers for 20 months. Transfers must be requested in the first 60 days to get the 0% rate, and there’s a 3% transfer fee. You also get free cell phone protection. Excellent credit is required.   

Amex EveryDay is elite because of its extra points on groceries. You get a 0% APR for 15 months on purchases. You get 2 points per $1 on your first $6,000 spent on groceries per year and 1 point per $1 on all other purchases. Using your card 20 times in a month gets you 20% more points. There’s also a 10,000-point bonus when you spend $1,000 in your first 3 months. 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 Capital One Venture and Barclaycard Arrival Plus.  

The best travel credit card with no annual fee is the Capital One VentureOne card because it offers an initial bonus of 20,000 miles for spending $1,000 in the first 3 months. It also rewards cardholders with at least 1.25 miles per $1 spent on all purchases. VentureOne has a $0 foreign transaction fee in addition to its $0 annual fee.

If you aren’t planning to go anywhere too adventurous, consider the Discover it Miles card. Discover’s not accepted in as many international locations as Visa or Mastercard, but its US acceptance is pretty good. The Discover Miles card also has good rewards. It offers 1.5 miles per $1 spent on all purchases, doubled year one.

The best credit card with no annual fee and cash back is the Citi Double Cash Card, which gives unlimited 2% cash back on all purchases. But there are plenty of other great contenders. Among the rest of the best cash back credit cards with no annual fee are Capital One Quicksilver (unlimited 1.5% cash back and 0% financing for 15 months), the Wells Fargo Cash Wise Visa (unlimited 1.5% - 1.8% cash back) and Blue Cash Everyday from American Express (3% cash back on up to $6,000 spent per year on groceries). And the Discover it Cashback card gives 5% back in bonus categories that change every three months. It also doubles what you’ve earned at the end of your first year. 

The price you pay for no annual fee and cash back is the credit score needed for high approval odds  (700+). The one exception is the Discover it Secured card, which people with bad credit can get, as long as they’re willing to pony up a $200 refundable security deposit.

Here are the best credit cards with no annual fee and cash back:

• Citi Double Cash Card: no annual fee, unlimited 2% cash back, no initial bonus.
• Capital One Quicksilver Card: no annual fee, unlimited 1.5% cash back, $150 cash bonus for spending $500 in 3 months.
• Discover it Cashback Match: no annual fee, up to 5% cash back in certain categories, 1st year cash back doubled.
• Wells Fargo Cash Wise Visa Card: no annual fee, unlimited 1.5%+ cash back.
• Discover it Secured: no annual fee, up to 2% cash back, 1st year cash back doubled.
• Blue Cash Everyday Card from American Express: no annual fee, 3% cash back on first $6,000 spent on groceries, 2% back at gas stations and select departments stores.

Cash back gives flexibility and freedom when it comes to earning rewards. You’ll get a percentage back on every purchase, and you can spend your rewards however you like. Most of these cards offer great financing options as well. There’s 12 months no interest with the Wells Fargo Cash Wise and Amex Blue Cash Everyday cards. Or better yet, 15 months no interest with Capital One Quicksilver. So pick a card based on whatever secondary benefits work best for you.  

The best airline credit cards with no annual fee are Capital One VentureOne and Discover it Miles if you want a general miles card, or the Blue Delta SkyMiles, China Airlines and Frontier Airlines cards for those who want to earn airline-specific miles without paying an annual fee. The earning rates on the airline-specific cards aren’t quite as good, though, and you’ll only be able to use them for flights on one airline.

Here are the best airline credit cards with no annual fee:

• Capital One VentureOne: 20,000 bonus miles for spending $1,000 in the first 3 months. 1.25 miles per $1 on all purchases. 0% APR on purchases for 12 months. No foreign transaction fee. You need good credit.
• Discover it Miles: 1.5 miles per $1 on all purchases. First year’s miles matched. 0% APR on purchases for 12 months. No foreign transaction fee. You need good credit.
• Amex Blue Delta SkyMiles: 10,000 bonus miles for spending $500 in the first 3 months. 2 miles per $1 spent at U.S. restaurants and on Delta purchases (1 point per $1 on everything else). 20% statement credit on food, beverages and headsets purchased on Delta flights. 2.7% foreign transaction fee. You need good credit.
• China Airlines Credit Card with No Annual Fee: 2,500 bonus miles for making your first purchase in the first 3 billing cycles. 1 mile per $1 in China Airlines purchases, and 1 mile per $2 spent elsewhere. No foreign transaction fee. You need good credit.
• Frontier Airlines Credit Card with No Annual Fee: 10,000 bonus miles for making your first purchase. 1 mile per $1 in Frontier Airlines purchases, and 1 mile per $2 everywhere else. 0% APR on balance transfers for 15 months (3% fee). 3% foreign transaction fee. You need good credit.

Overall, there aren’t too many airline credit cards with no annual fee. Most travel rewards credit cards charge, but many also offer more than enough rewards to make up for it, as long as you regularly make purchases and pay your bill in full every month. So you may want to waive your no-annual-fee rule if you spend at least $1,000 per month. That’s how much you have to shell out each of the first three months to get the Capital One Venture Card’s $500 initial bonus, for example. And that alone covers more than five years of annual fees, since Venture charges a $95 annual fee.

But if you don’t spend quite that much, Capital One VentureOne or Discover it Miles is definitely the way to go. Keep in mind that Discover it has no foreign transaction fees, but it also has lower global acceptance than Visa or Mastercard. 

The best no annual fee credit card for no credit is the Capital One Platinum Card. In addition to its $0 annual fee, the Platinum Card has a $300 initial credit limit and gives access to a higher limit after the first 5 on-time payments. Capital One Platinum does not have rewards, but no annual fee and rewards are a tough combination to find if you have no credit.

You could consider secured cards, too. You’ll have to put up a security deposit to open the account and set your credit limit. But it’s fully refundable once you close your account with a $0 balance. One of the best secured cards is Discover it Secured. It gives 2% cash back on restaurant and gas purchases (first $1,000 spent per quarter). All other purchases get you 1% back. The minimum security deposit is $200.

One-third of Chase credit cards have no annual fee. Some offer sign-up bonuses, worth up to $500, and points, miles or cash back on every purchase. Others have 0% introductory APRs. All of the no annual fee Chase credit cards require good credit or excellent credit for approval.

The best Chase credit card with no annual fee is Chase Freedom because it offers a $150 bonus for spending $500 in the first 3 months and 5% back on the first $1,500 spent per quarter in rotating categories. Other top contenders are Chase Freedom Unlimited ($150 bonus and 1.5% cash back on purchases) and Chase Slate (0% APR on purchases and balance transfers for 15 months). There are also a few more options with a $0 annual fee for the first year only, including Chase Sapphire Preferred.

Here are the Chase credit cards with no annual fee:

• Chase Freedom
• Chase Freedom Unlimited
• Chase Slate
• Amazon Rewards Visa Signature
• Ink Business Unlimited
• Ink Business Cash
• United TravelBank
• Disney Visa
• AARP Credit Card

A Chase credit card with no annual fee will save you money in the long run, as you’re not paying to use the card every year. But that shouldn’t deter you from applying for a Chase card that charges an annual fee. If you travel regularly or plan to make a big purchase, you may end up earning enough rewards where the annual fee will pay for itself.

For example, if you earn the 50,000-point initial bonus with Chase Sapphire Preferred, those points are worth either a $500 statement credit or $625 in travel rewards. That pays for the Preferred card’s $95 annual fee for 5-6 years, in addition to the free first  year.

No, there is not a Southwest credit card with no annual fee. The lowest annual fee for a Southwest credit card is $69 with the Southwest Rapid Rewards® Plus Credit Card. Even though all of the Southwest credit cards currently have annual fees, they come with plenty of benefits to make that fee worth it for frequent Southwest Airlines flyers.

All Southwest credit cards come with signup bonuses, from 65,000 to 80,000 points. The cards also come with good ongoing rewards rates, and benefits like 2 free checked bags and upgraded boarding. Unlike some other airlines, Southwest doesn’t have any transfer partners. That means you can’t get a $0 annual fee credit card from another airline and transfer the rewards to Southwest. Because of that, Southwest credit cards are really only intended for frequent Southwest Airlines flyers.

There are a few credit cards whose rewards you can transfer to Southwest through the Chase Ultimate Rewards travel portal. Those cards include the Chase Sapphire Preferred and Sapphire Reserve cards, and the Chase Ink Business Preferred card. However, each of those credit cards has an annual fee. The best card for transferring points to Southwest is Sapphire Preferred, because it has the lowest annual fee at $95 and comes with a big signup bonus: 80,000 points after spending $4,000 in the first three months.

There are also a few credit cards from other airlines that have no annual fee.

The only United Airlines credit card with no annual fee is  the United TravelBank card. You’ll get a $150 cash bonus when you spend $1,000 in the first three months, and 2% cash back per $1 spent on United Airfare, and 1.5% on all other purchases. The Explorer Card has no annual fee for the first year, but will charge you $95 after 12 months.

A credit card with no annual fee can save you anywhere from $25 to more than $550 a year over cards that charge annual fees. An annual fee will appear on your statement, usually on the statement following your card anniversary date. The fee is entered on your statement as a charge, just like a purchase. It will also reduce your credit limit by the amount of the fee. Annual fees do not earn reward points or miles.

There are a few reasons why a credit card would charge an annual fee. The primary reason for airline rewards cards such as United is that some of the rewards and benefits its cards offer are not cheap. Charging an annual fee allows them recoup some of the costs of all of those perks.

Here are some good airline miles credit cards with no annual fee:

• United TravelBank: $0 annual fee.
• American Airlines AAdvantage MileUp: $0 annual fee.
• American Airlines AAdvantage Aviator: $0 annual fee.
• Capital One VentureOne: $0 annual fee.
• Blue Delta SkyMiles: $0 annual fee.
• Barclaycard Arrival Plus World Elite Mastercard: $0 annual fee for first year, $89 after.
• United Explorer: $0 annual fee for first year, $95 after.
• Capital One Venture Rewards: $0 annual fee for first year, $95 after.
• Chase Sapphire Preferred Card: $0 annual fee for first year, $95 after.
• Citi / AAdvantage Platinum Select: $0 annual fee for first year, $99 after.

The truth is, some cardholders regard an annual fee as the cost of doing business, and will pay the fee once a year, knowing that it will pay for itself down the road.

The flipside is that others may never fly or earn enough rewards to justify the cost of any annual fee. If you’re an infrequent traveler, or don’t plan to make any big purchases over the course of a year, sticking with a United Airlines credit card with no annual fee is probably the safer bet.

A black credit card with no annual fee is the RBC Bank Visa Signature Black Credit Card. You’ll earn 1 point per $1 spent on all purchases. There’s also 0% interest for 6 months on purchases and balance transfers, with a 3% transfer fee. You’ll also get hotel upgrades, discounts on fine dining, and other travel privileges.

Black credit cards are a class of super-exclusive, high end credit cards that are black in color. While the RBC black card offers a decent set of benefits for no annual fee, it is hardly in the same league as the Black Gold Standard of black cards: The American Express Centurion card.

Shrouded in secrecy, the Centurion reportedly requires you to spend at least at least $250,000 a year on American Express cards. And that’s just to get an invitation to apply. If you are lucky enough to garner an invitation, you’re still on the hook for some hefty fees. The initiation fee is rumored to run between $5,000 and $7,000, and the annual fee is $2500.

The Mastercard Black Card doesn’t require an invitation or an initiation fee like the Centurion, but it does command a $495 annual fee.

A black credit card with no annual fee is a good deal when compared to its high-priced brethren. But for customers who don’t have the money high-end cards require, there’s much better value in rewards cards of all colors.

Rewards cards such as the Capital One Venture, Citi Double Cash and Chase Sapphire Preferred cards offer little in terms of social status. But cardholders will come away with a solid array of rewards and benefits without the ridiculously high fees.