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Erika's Picks for Best No-Annual-Fee Credit Cards
- Best for travel:
Capital One VentureOne Rewards Credit Card - Best for beginner benefits:
Chase Freedom Unlimited® - Best for dining and entertainment:
Capital One Savor Cash Rewards Credit Card - Best for gas and groceries:
Blue Cash Everyday® Card from American Express - Best for everyday spending:
Wells Fargo Autograph℠ Card - Best for rotating cashback:
Discover it® Cash Back Credit Card
While the credit cards with the best perks also come with the highest fees, it's still possible to get a card that earns you rewards without having to pay out of pocket every year.
Plus, if you use these cards for things you're already planning on spending money on, you'll come out financially ahead — so long as you remember to pay off your balance every month and don't start racking up interest charges!
The best credit cards with no annual fees cost nothing to own, usually won’t require you to keep track of rotating categories, and can often provide consistent rewards on your spending.
Best for Travel
Capital One VentureOne Rewards Credit Card
Rewards Rate
- 5x miles on hotels and rental cars booked through Capital One Travel
- 1.25x miles on everything else
Welcome Offer
LIMITED-TIME OFFER: Earn $300 in travel bonuses. Enjoy $100 to use on Capital One Travel in your first cardholder year, plus earn 20,000 bonus miles once you spend $500 on purchases within the first 3 months from account opening — that’s equal to $300 in travel!
Annual Fee
$0
The Capital One VentureOne Rewards Credit Card is a no-fee card that offers a competitive, easy-to-follow travel rewards program. You can use your points to book travel or redeem them as a statement credit.
Here are some other perks that come with the card:
- No foreign transaction fees
- Transfer points to more than 15 travel partner loyalty programs
- Emergency card replacement
- Earn bonus miles on Capital One Entertainment
- Access to exclusive Capital One Dining reservations
- Virtual card number for online shopping
- $0 fraud liability
- Access to CreditWise credit score reporting
- 24/7 customer service
While the VentureOne card allows you to earn travel rewards, it comes with fewer travel benefits than fee-based cards. There’s no travel insurance, and you won’t get premium benefits like lounge access.
Also, even though the miles you can earn is higher than some cards, it’s lower than other travel cards offered by Capital One, like the Capital One Venture Rewards Credit Card.
The simple rewards structure makes the Capital One VentureOne Rewards Credit Card a good option for beginner travelers who want to start earning travel rewards but don’t want to pay an annual fee.
You can earn miles on everyday purchases that you can use to book travel through Capital One Travel or one of Capital One’s travel partners. While it won’t get you the highest rewards or premium benefits, it's good for someone who wants a low-cost way to break into the travel rewards market.
Best for Beginner Benefits
Chase Freedom Unlimited®
Rewards Rate
- 5% cashback on travel purchased through Chase Travel℠
- 3% cashback on drugstore purchases, restaurants, takeout, and eligible delivery services
- 1.5% on all other purchases
Welcome Offer
Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
Annual Fee
$0
If you want credit card perks like travel insurance and purchase protection, but don’t want to pay the annual fee that typically comes with those benefits, the Chase Freedom Unlimited® is a good option.
In addition to earning unlimited cashback on everything (and boosted cashback on dining, drugstores, and travel booked through Chase TravelSM), you’ll also get the following benefits:
- Trip cancellation and interruption insurance (up to $1,500 per covered traveler and $6,000 per trip)
- Travel and emergency assistance
- Auto rental coverage
- Purchase protection (for 120 days; up to $500 per item)
- Extended warranty protection for an additional year on eligible warranties of 3 years or less
- 24/7 fraud monitoring and zero liability protection
- Access to Credit Journey® to help you build your credit and monitor your score
- 6 months’ complimentary DashPass (activate by December 31, 2027)
While the Freedom Unlimited is a great no-annual-fee card, it’s not perfect. You earn cashback rather than Chase Ultimate Rewards®, which means you can’t transfer rewards to Chase’s travel partners. The card also charges foreign transaction fees, so it’s not a great card to bring with you overseas.
It’s rare for a no-annual-fee credit card to offer perks like travel insurance and purchase protection, but the Chase Freedom Unlimited® does that, and more. You get trip cancellation/interruption coverage, rental car insurance, travel and emergency assistance, purchase protection, and extended warranty — a nice suite of perks for no fee.
It also gets you into the Chase ecosystem, and Chase TravelSM is one of the best credit card travel programs out there. While you’ll earn cashback (not rewards) with this card, and therefore can’t redeem for travel, you can book (and earn cashback) through Chase TravelSM.
Plus, the Freedom Unlimited could be a good stepping stone into Chase’s more premium travel cards, like the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®.
Best for Dining and Entertainment
Capital One Savor Cash Rewards Credit Card
Rewards Rate
- 8% cashback on Capital One Entertainment purchases
- 5% on hotels and rental cars booked through Capital One Travel
- 3% on dining, entertainment, select streaming subscriptions, and grocery store purchases (excluding superstores)
- 1% on all other purchases
Welcome Offer
LIMITED-TIME OFFER: Earn $300 in welcome bonuses. Enjoy a $100 credit to use towards flights, stays and rental cars booked through Capital One Travel during your first cardholder year. Plus, earn a $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening.
Annual Fee
$0
The Capital One Savor Cash Rewards Credit Card offers cashback rewards for dining and entertainment without an annual fee. And if you like to travel, you’ll earn boosted cashback on hotels and rental cars booked through Capital One Travel. Live events purchased through Capital One Entertainment earn even more.
Other perks include:
- No foreign transaction fees
- Concierge for dining, travel, or event bookings
- Travel accident insurance
- Access to discounts through Capital One Shopping
- Extended warranty on covered purchases
- 24/7 travel assistance
- $0 fraud liability
- Credit monitoring through CreditWise
- Exclusive access through Capital One Dining and Capital One Entertainment
However, there are some downsides to the card. While the cashback on grocery stores is nice, it doesn’t include retailers like Walmart or Target. And if you’re new to credit cards, managing the different cashback categories can be a lot to keep track of.
The Capital One Savor Cash Rewards Credit Card is a good no-fee card if you enjoy going out regularly, since it has such high earning potential on dining and entertainment.
Plus, you’ll earn rewards on everyday purchases like groceries, so even if you prefer a night in, you’ll still earn rewards that you can then use to offset future restaurant visits.
The concierge services for events, travel, and dining are also a nice perk, making this card ideal for people who like going to restaurants and seeing shows and could benefit from earning some cashback on those hobbies.
Best for Gas and Groceries
Blue Cash Everyday® Card from American Express
Rewards Rate
- 3% cashback at U.S. supermarkets, U.S. gas stations, and U.S. online retailers (up to $6,000 in purchases per calendar year in each category, then 1%)
- 1% on all other purchases
Welcome Offer
Earn a $200 statement credit after spending $2,000 on purchases within the first 6 months
Annual Fee
With the Blue Cash Everyday® Card from American Express, you can earn cashback on everything and boosted cashback on purchases from U.S. supermarkets, U.S. gas stations, and U.S. online retailers — although only up to a limit of $6,000 per year, per category.
Your cashback is received in the form of Reward Dollars that can be redeemed as a statement credit, or you can use your cashback at checkout on Amazon.com, for the same value as a statement credit.
And because it’s an Amex, you get access to Amex Experiences for sports, music, and theatre events.
The card also comes with the following benefits:
- Car rental loss and damage insurance*
- Global Assist® Hotline*
- Purchase protection*
- $84 Disney Bundle Credit (as a $7 monthly statement credit after using your card to spend $9.99 or more each month on a subscription to the Disney Bundle)
- $180 Home Chef Credit (up to $15 in statement credits back per month after you use your card to purchase a Home Chef subscription; enrollment required)
While the Blue Cash Everyday is good for food, gas, and online shopping, keep in mind that it does have an annual cap per category. If you want to earn more, you may want to consider the Blue Cash Preferred® Card from American Express, which has a higher earning rate on those same categories and the $6,000 cap only applies to supermarkets. The Preferred does have an annual fee, but it’s waived for your first year.
Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.With the Blue Cash Everyday® Card from American Express, you can earn elevated cashback on the two very common expenses of gas and groceries, but without having to pay an annual fee. While some other no-annual-fee cards do include groceries, few cover both groceries and gas.
It’s also convenient that you can use your rewards directly through Amazon and that you can get the benefits of an Amex (namely, access to Amex Events).
Best for Everyday Spending
Wells Fargo Autograph℠ Card
Rewards Rate
- 3x points on purchases at restaurants, gas stations and EV charging stations, travel, transit, select streaming services, and cellphone plans
- 1x points on everything else
Welcome Offer
Earn 20,000 points after spending $1,000 in the first three months
Annual Fee
$0
The Wells Fargo AutographSM Card has a simple rewards structure without rotating categories to keep track of, making it easy to use on everyday spending. You’ll earn boosted points on restaurants, travel, gas stations, transit, streaming services, and phone plans — common spending categories for many of us. Plus, you’ll earn 1x points on everything else.
There’s no annual fee, and you can redeem your points for travel, statement credits, gift cards, or through PayPal.
Some other benefits include:
- Cellphone protection up to $600 per claim (comes with $25 deductible)
- Auto rental collision damage waiver
- Travel and emergency assistance
- Roadside dispatch
- Emergency cash disbursement and card replacement
- Zero liability protection
- Credit monitoring
- No foreign transaction fees
- Access to exclusive events
- Visa Signature Concierge services
- Visa Signature Hotel Collection
The Autograph is good for cashback on everyday spending, but its benefits are limited. It doesn’t offer lounge access or airline-specific perks like free checked bags. And while the boosted points cover a lot of your daily purchases, the card excludes some everyday categories like groceries.
The simple rewards structure makes the Wells Fargo AutographSM Card a good option for everyday spending since it’s got such a simple structure and covers a lot of common categories, like restaurants, gas stations, streaming services, and phone plans.
It also comes with a lot of benefits not typically seen in no-annual-fee cards, like cellphone protection, rental car coverage, and travel emergency assistance. It also doesn’t charge foreign transaction fees, making it easy to keep in your wallet even when you’re traveling.
If you want to earn well-rounded rewards without paying an annual fee, this card could be ideal.
Best for Rotating Cashback
Discover it® Cash Back Credit Card
Rewards Rate
- 5% cashback on rotating categories each quarter (up to $1,500 in purchases, then 1%; activation required)
- 1% on everything else
Welcome Offer
Discover Cashback Match™ will double all cashback earned in the first 12 months
Annual Fee
$0
The Discover it® Cash Back Credit Card is a good no-annual-fee card that allows you to really maximize your rewards. That’s because it offers a boosted 5% cashback rate on categories that rotate every quarter (up to $1,500 in purchases per quarter).
If you monitor the rotating categories and plan your spending accordingly, you could really make the most of your savings.
It’s also one of only a handful of cards that offers a cashback matching option through its Cashback Match feature. Discover will match your rewards with no limits during the first year. Cashback rewards are equivalent to $1, so if you earn $500 in cashback during your first year, that’s worth $500 in rewards. Discover will match it, bringing your total rewards to $1,000.
Other benefits include:
- No foreign transaction fee
- Online privacy protection
- FICO score access
- $0 fraud liability
- First late payment waived
- Digital credit card
While the Discover it® Cash Back can be a great way to maximize cashback rewards, there might be challenges with using the card. Discover isn’t as widely accepted as Visa or Mastercard, which can limit how many rewards you earn. Plus, you need to remember to activate the bonus categories each quarter.
Finally, matching ends after the first year, which can make the rewards value lower than other cards.
The Discover it® Cash Back Credit Card is unique because of Discover’s rewards-matching during the first year, which basically doubles your reward rate. That’s a really great welcome offer for a card with no annual fee.
The rotating categories can help you to maximize your rewards on everyday purchases, so if you’re someone who’s willing to put in the effort, you can earn a good chunk of cashback.
How To Choose a No-Annual-Fee Credit Card
When shopping for a credit card, there are many other aspects you want to consider besides the annual fee.
- Interest rate: A high rate won't save you any money if you expect to carry a balance each month (which you should avoid!).
- Other fees: Check for other potential fees, like foreign transaction fees or late payment fees.
- Reward categories: Make sure the reward categories align with your spending habits. For example, if you spend $1,000 every month on restaurants, you might want a card with high restaurant rewards.
- Welcome bonus: Lots of no-annual-fee cards offer sign-up bonuses for your business. Look for welcome offers that suit your spending.
- Additional perks: While you won't get the best perks with no fee, there may be some features such as purchase protection or free credit monitoring.
- Customer service: Read customer reviews online to get a sense of how easy the card issuer is to deal with when an issue comes up.
When it comes to rewards, keep in mind that a higher rate of rewards does not necessarily mean you’ll earn more. For example, a card with a $100 annual fee that offers 5% cashback seems like a better offer than a no-annual-fee card that offers just 2% cashback.
But the card with 5% is likely to have a spending cap that limits your earnings, while flat-rate cashback cards are often unlimited. Depending on your spending habits, you could come out ahead with the card that has a lower rewards rate, especially if you don’t have to offset the annual fee.
To choose the right card, evaluate how a no-annual-fee card fits into your existing budget. Figure out where you spend money and the types of rewards and benefits you want. Different cards will appeal to different people. A frequent flier, for example, might opt for a different card than someone looking to earn cashback on date night.
RELATED: How To Maximize Credit Card Rewards
Pros and Cons of No-Annual-Fee Credit Cards
Since there’s no cost to having the card, the stakes for choosing a no-annual-fee card are lower than with their more expensive counterparts.
Still, it's important to consider the pros and cons before you apply.
Pros
- Low-cost rewards: As appealing as a premium credit card might be, the fees might not be worth it. Cards without an annual fee still allow you to earn rewards while spending money on things you already plan to buy.
- Easier to manage: With premium cards, you have to calculate if it’s worth the cost. A no-annual-fee credit card cuts out the hassle of figuring out whether you’ll break even at the end of the year.
- Good for beginners: If you're new to credit cards, it might not make sense to jump into a premium card. You want to first know that you can be responsible with a credit card. Plus, since credit cards report your payments to the credit bureaus, you can build your credit score fee-free.
Cons
- Lower-value rewards: While you can still earn rewards, you won’t necessarily earn the best rewards possible with a no-annual-fee card. Higher-tiered earnings are usually reserved for cards that come with an annual fee.
- Earning limitations: Many no-annual-fee reward cards come with earning caps. For example, some cards limit how much you can earn in a quarter while others only offer high rewards in limited categories.
- Fewer perks: If you’re looking for dazzling rewards, complimentary memberships, and airport lounge access, you’ll probably want to look at fee-bearing cards.
RELATED: Credit Card vs. Debit Card
Bottom Line: Benefits of No-Annual-Fee Credit Cards
Aside from the interest payments that’ll accrue if you carry a balance, no-annual-fee credit cards don’t cost anything to use. You can decide to use it regularly or not use it at all.
Note that you won’t be penalized for not using it (although after extended inactivity, some issuers may try to close your account).
Credit cards with an annual fee, on the other hand, cost money just to own. Premium cards charge annual fees that are hundreds of dollars — but come with higher rewards and better perks. For example, some premium travel credit cards come with lounge access that can be difficult to match.
Frequently Asked Questions
What types of no-annual-fee credit cards can you get?
There are a variety of different credit cards that don't charge an annual fee, including travel cards, cashback cards, balance transfer cards, and business cards.
Can you get a credit card with no annual fee if you have bad credit?
While it may be possible, it will likely be difficult to get a no-annual-fee credit card with bad credit. But if you take some time to build your credit, you may be eligible sooner than you think. A great way to rebuild credit is a secured credit card. There are several secured credit cards with no annual fee.
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