No annual fee credit cards: Earn rewards without a cost | finder.com
No annual fee credit cards

No annual fee credit cards

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Take advantage of the benefits of a credit card without the extra cost.

This guide explains what a no annual fee credit card is, outlines the common fees associated with no annual fee cards, and includes a comprehensive comparison table. Learn the mistakes you should avoid when using no annual fee credit cards, and get answers to the most commonly asked questions.

Chase Freedom Unlimited®

  • 0% intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.99 to 25.74%
  • Balance transfer fee is 3% of the amount transferred, $5 minimum
  • Unlimited 1.5% cash back on every purchase - it's automatic
  • Earn a $150 bonus after you spend $500 on purchases in your first 3 months from account opening
  • No minimum to redeem for cash back
  • Cash back rewards do not expire as long as your account is open
  • Free credit score, updated weekly with Credit Journey℠
  • No annual fee
Read less
Read more
Promoted

Compare credit cards with no annual fee

Name Product Annual Fee APR (Annual Percentage Rate) for Purchases
$0
16.99% to 25.74% variable
0% intro APR for 15 months from account opening on purchases and balance transfers.
$0
16.99% to 25.74% variable
0% intro APR for 15 months from account opening on purchases and balance transfers.
$0
14.99% to 25.99% variable
Earn up to $250 back. Earn $150 back after you spend $1,000 or more in purchases with your new card within the first 3 months of card membership. Plus, earn an additional $100 back after you spend an additional $6,500 in purchases within your first 12 months. Rates & Fees
$0
14.99% to 25.99% variable
Earn a $150 bonus statement credit after you spend $1,000 on purchases in the first 3 months. Rates & Fees
$0
13.99% variable
A low, variable APR on purchases, balance transfers and cash advances.
$0
14.99%, 18.99% or 24.99% variable
Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees.
$0
17.74% to 26.74% variable
Earn 10,000 bonus miles after spending $500 in purchases on your new card in your first 3 months of card membership. Rates & Fees
$0
17.74% to 26.74% variable
Earn 75,000 Hilton Honors™ Bonus Points after you spend $1,000 in purchases on the card within your first 3 months of card membership. Rates & Fees
$0
16.24% to 22.24% variable
1% cash back to the nonprofits, K-12 schools, colleges and religious organizations of your choice.

Compare up to 4 providers

What is a no annual fee credit card?

Some credit cards charge an annual fee to cardholders just for having the credit card. Annual fees can be as low as $30 or as high as $500 depending on the credit card. The fee is charged automatically each year, typically during the credit card’s anniversary month.

Some credit cards waive the annual fee in the first year, giving cardholders 12 months to enjoy the credit card at no cost. In some cases, the benefits of the credit card are enough to justify paying the annual fee. A no annual fee credit card, on the other hand, does not charge an annual fee to cardholders each year.

No annual fee credit cards are a great option for consumers who do not want to pay extra for having a credit card, no matter how great the perks seem. Avoiding an annual fee helps you minimize the cost of using a credit card.

Some credit cards come in a no annual fee version and an annual fee credit card. Sometimes, the no annual fee credit card has fewer perks, like a lower rewards earning rate.
3 best secured credit cards with no annual fees

Back to top

How to choose a no annual fee credit card

From low interest rates to rewards, no annual fee credit cards have a variety of attractive features. With so many great options, choosing a no annual fee credit card can being difficult. Here are some tips to help you compare and choose a credit card.

  • Credit card issuer. Personal experience or consumer reviews may sway you toward one particular credit card issuer. If you have a favorite bank, look through their no annual fee credit card offerings first. It will certainly help you narrow down your options.
  • Interest rate. Interest rate is often one of the most important determining factors for a credit card, particularly for people who may carry a balance. A low interest rate will help you minimize the amount of interest that you pay on the credit card. If this is the case for you, pay close attention to the APR of the credit cards you’re comparing. Keep in mind that you typically need to have a good credit score to qualify for a low interest rate.
  • Promotional rates. The next best thing to not paying an annual fee is not paying any interest. Many no annual fee credit cards have promotional interest rates on balance transfers. Check out the credit cards with long introductory periods. If you qualify, you’ll have several months to enjoy your credit card without paying any interest. The promotional period will let you save money on existing credit card debt that you transfer to the card. Make sure you also consider the post-promotional interest rate, as this will be the interest rate you pay once your promotional period has ended.
  • Credit card rewards. Don’t assume that you can’t get great rewards unless you pay a high annual fee. Many no annual fee credit cards also have great rewards programs, paying cash, points and miles on qualifying transactions. To narrow down your options, consider the type of rewards you prefer to earn. Cash is the most versatile, or you may get more benefit if you choose a credit card that pays miles or points. Scan the rewards program of each credit card you’re considering and choose the credit card that pays rewards in the categories in which you spend the most.
  • Sign-up bonus. Many rewards credit cards offer a sign-up bonus points for new cardholders. Earning the signup bonus is as simple as spending a certain amount of money in the first few months of having your credit card. The sign-up bonus alone can push a credit card to the top of your list. Keep in mind that you may not be able to earn a sign-up bonus if you already have a credit card with that credit card issuer or if you’ve earned a sign-up bonus within the past few years.
Back to top

Shell fleet card with no annual fee

Fees you could face

While a no annual fee credit card lets you avoid one of the fees, there are other credit card fees you should know about. The good news is that most of the fees are avoidable. Depending on how you use your credit card, you can dodge most of these fees and enjoy your credit card at no cost.

  • Late fee. The terms of your credit card require that you make at least the minimum payment by the due date each month. If you’re late or you pay less than the minimum, you’ll be charged a late fee, even if your credit card payment is just a few minutes late. The late fee can be up to $35 depending on whether you have been late in the past six months. Paying on time is the only way to avoid a late fee.
  • Returned payment fee. If your bank returns your credit card payment, your credit card issuer will charge a returned payment fee and your payment will still be due. The exact fee will vary depending on the credit card issuer but can be up to $35. To avoid paying a returned payment fee, make sure that you have funds available in your checking account before you write a check for your credit card payment.
  • Finance charges. If you start the billing cycle with a zero balance, you’ll have a certain amount of time, the grace period, to pay your balance in full and avoid interest charges. Otherwise, you’ll be hit with interest in the form of a finance charge. The finance charge is based on your annual percentage rate and your balance. You can avoid a finance charge by paying your full balance each month before the grace period ends. (Check your credit card agreement for the length of your grace period).
  • Balance transfer fee. A balance transfer fee is charged whenever you transfer a balance from one credit card to another. The balance transfer fee is either a flat fee or a percentage of the balance that you transfer, whichever is greater. For example, your credit card terms may specify that the balance transfer fee is the greater of $5 or 3% of the balance transfer. The balance transfer fee is typically unavoidable with balance transfer transactions, even when you have a promotional rate for balance transfers.
  • Cash advance fee. A cash advance fee is assessed on cash advances. Depending on your credit card terms, this likely includes ATM withdrawals, transactions that result from overdraft protection, and other cash equivalent transactions like the purchase of a money order or purchase of foreign currency. Like the balance transfer fee, the cash advance fee is either a flat fee or a percentage of the cash advance.
  • Foreign transaction fee. Using your credit card to make a transaction in something other than U.S. dollars will result in a foreign transaction fee. The foreign transaction fee is typically a percentage of the transaction. You can avoid a foreign transaction fee on a no annual fee credit card by avoiding transactions in other currencies or by using a credit card that does not charge foreign transaction fees.

While these represent the most common credit card fees, your credit card provider may charge other fees. To determine which fees are charged by your no annual fee credit card, read through the credit card terms and conditions. Once you’re aware of the fees your credit card charges, you can better figure out how to avoid them.
How to get a no fee and 0% interest balance transfer credit card

Back to top

Mistakes to Avoid With a No Annual Fee Credit Card

With a no annual fee credit card, one of the most important things is to be sure you’re not using your credit card in a way that incurs unnecessary fees. This helps minimize the cost of using your credit card.

  • Paying late. If you have trouble remembering your credit card payment, you can schedule a recurring payment to be made either from your bank or through your credit card issuer. Not only do late fees increase the cost of having a credit card, they can also affect your credit score and your ability to get approved for other credit cards in the future.
  • Carrying a balance. Another way to increase the cost of having a no annual fee credit card is to carry a balance. The higher your credit card balance and the higher your interest rate, the higher your finance charge will be. Paying your balance in full each month is the best way to avoid paying finance charges and minimize the cost of your credit card.
  • Letting your credit card go unused. If you’re not using your credit card, not only do you miss out on the benefits of having the card, you also risk having your credit card closed. After a certain period of inactivity, many credit card issuers will cancel the credit card account. Once your credit card account is closed, you will have to reapply to open the credit card again.
  • Ignoring notices from your credit card issuer. Make sure you read all the inserts that come with your billing statement and any other letters from your credit card issuer. If the terms of your credit card change (e.g., your credit card issuer introduces an annual fee), you’ll receive a letter letting you know of the change. It’s important to read and respond to this notice, especially if you want to reject the change.
Back to top

Frequently asked questions

Back to top
Was this content helpful to you? No  Yes

US Credit Card Offers

Important Information*
Deserve® Classic Card
Deserve® Classic Card

APR

24.49
variable

Annual fee

0 For the first year
More info
Luxury Card Mastercard® Gold Card™
Luxury Card Mastercard® Gold Card™

APR

16.74
variable

Annual fee

995 For the first year
More info
First Access Visa Card®
First Access Visa Card®

APR

29.99
variable

Annual fee

75 For the first year
More info
Indigo® Platinum Mastercard® Credit Card
Indigo® Platinum Mastercard® Credit Card

APR

23.9
variable

Annual fee

75 For the first year
More info

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

US Credit Card Offers

Important Information*
Deserve® Classic Card
Deserve® Classic Card

APR

24.49
variable

Annual fee

0 For the first year
More info
Luxury Card Mastercard® Gold Card™
Luxury Card Mastercard® Gold Card™

APR

16.74
variable

Annual fee

995 For the first year
More info
First Access Visa Card®
First Access Visa Card®

APR

29.99
variable

Annual fee

75 For the first year
More info
Indigo® Platinum Mastercard® Credit Card
Indigo® Platinum Mastercard® Credit Card

APR

23.9
variable

Annual fee

75 For the first year
More info
Go to site