Compare credit cards with no annual fee 2021

Choosing a credit card without an annual fee can help you save money. But it can also come with lower rewards — and you can still be on the hook for late fees, interest and other costs. Use our table to compare your options and find the best card for you.

No annual fee cards by bank

What is an annual fee?

An annual fee is a yearly cost to keep a credit card. If your card has one, the annual fee is charged automatically each year, typically during the month you opened your account.

With a no annual fee card, you won’t have to pay this cost, which helps you minimize the expense of owning a credit card.

Annual fees typically range from as low as $30 or as high as $550. Some providers waive the annual fee in the first year, giving cardholders 12 months to enjoy their cards at no cost. That said, a card with an annual fee typically comes with more perks and benefits that can offset the fee.

Pros and cons of a no annual fee card

It’s always good to get a full picture of a card type before you submit an application. Here are a few things to consider before getting a no annual fee card.

How do I compare no annual fee credit cards?

There are many no annual fee cards out there, and the choices can sometimes feel overwhelming. To help you narrow down your options, here’s what to consider:

Do you want to earn rewards?

Many no-annual-fee cards come with a rewards program. You can either get a card with accelerated rewards on select categories like travel, dining, groceries or gas, or you can get a card with flat-rate rewards on all purchases.

• Spend a lot on everyday purchases? Check out the cards issued by American Express, Discover and Bank of America.
• Want a flat-rewards card? Citi and TD Bank offer one of the best cards with flat rewards rate on all purchases.
• Spend a lot on travel? Barclaycard has almost 20 travel credit cards in the form of cobranded cards with cruise lines, airlines and home rentals. All other card providers offer a smaller selection of no-annual-fee travel cards, but most of them are excellent options.

Do you want a 0% intro APR period?

Many no annual fee cards have intro APRs. This means you could get 0% APR on purchases or balance transfers for a period of time. Think about whether a promotional interest rate is important to you — and if so, how long you want it to be.

Do you want a strong signup bonus?

A signup bonus can give you a burst of rewards soon after you’re approved for a card. Many no annual fee cards have similar bonuses, but you’ll find the occasional offer that stands out.

With a no-annual-fee card, expect to earn a bonus worth anywhere from $50 up to $250.

Do you have a good credit score?

Your credit score has a big effect on which cards you’ll be approved for. For rewards cards and products with intro APRs, you’ll usually want to apply with a good to excellent credit score of 670 or higher. If your score is lower than that, consider a no annual fee secured credit card to build your credit.

Bottom line

A no annual fee card can help you keep costs down. It can also offer great rewards and benefits you didn’t expect.

If you want more options, there are plenty of credit cards to compare. Check out our guide to the best credit cards of 2021.

Frequently asked questions

• What kind of credit do you need to get a no annual fee credit card?

  There are no annual fee credit cards that target everyone from excellent to fair credit. People with bad credit scores, however, will find limited options for no annual fee credit cards. If you’ve had trouble getting approved for credit in the past or you have a bad credit history, you may have to improve your credit before you can qualify for a no annual fee credit card.

• Do no annual fee credit cards pay rewards?

  You may expect that all the great rewards credit cards charge an annual fee, but fortunately, there are several great rewards credit cards without an annual fee. You can find a variety of no annual fee credit cards that pay cash, miles and points rewards. You’ll typically need to have good credit to qualify for a rewards credit card, regardless of whether the card charges an annual fee.

• Can the card issuer begin charging an annual fee later on?

  Your credit card issuer can start charging an annual fee after you’ve already signed up for the card. If your card issuer plans to introduce an annual fee, they’re required to let you know well in advance of the time the annual fee will become effective. You’ll have the opportunity to opt out, or reject, the addition of the annual fee. Your credit card issuer will have to allow you to pay your credit card off under the current terms (no annual fee), but may cancel your account or suspend your purchasing privileges. Unless your credit card has great rewards, opting out of the new fee is typically best.

• Are no annual fee credit cards completely free?

  A no annual fee credit card can be completely free, but it depends on how you use the credit card. Paying on time and in full will help you avoid late fees and interest. Most other fees are transaction-based, which means you’ll have to avoid specific transactions to avoid paying fees. This includes balance transfers, cash advances and purchases made in foreign currencies.

• How can I tell if a credit card charges an annual fee?

  Most no annual fee credit cards will prominently advertise that there’s no fee for the card. It’s one of the biggest selling points for a credit card. If you see the phrase “No annual fee” followed by an asterisk (*), check for a caveat in the fine print. You may learn that the annual fee is only waived in the first year of the credit card. The best way to figure out whether a credit card charges an annual fee is to read through the credit card pricing disclosure. All credit cards are required to list the pricing associated with a credit card with each credit card offer.