Best no annual fee credit cards

Best overall no annual fee credit card

Annual fee: $0
Reward rates: Earn unlimited 2% cash rewards on purchases
Welcome bonus: Yes
Welcome bonus value: $200 cash rewards
Bonus redemption threshold: Upon charging $1,000 in the first three months of opening the account
Credit requirement: Good to excellent (670-850)
Intro APR: 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers
APR for purchases: 14.99% – 24.99% variable
APR for balance transfers: 14.99% – 24.99% variable
Balance transfer fee: 3% of the amount transferred or $5, whichever is greater, for 120 days from account opening. After that, 5% ($5 minimum)

The Wells Fargo Active Cash Card* is our pick for best overall no annual fee credit card for many reasons. The unlimited 2% flat cash rewards structure makes this a simple, but powerful card. There’s no worrying about reward limits or bonus categories — you’ll earn a flat rewards rate on all of your everyday purchases. Plus, if you spend $1,000 in the first three months of opening your account, you’ll receive a $200 cash rewards welcome bonus.

Another major perk that this no annual fee card offers is a great balance transfer period — 0% intro APR for 15 months for qualifying balance transfers (14.99% to 24.99% variable APR thereafter). It gives you ample time to tackle old debt without having to worry about the balance snowballing due to high-interest rates. 

Best overall no annual fee credit card (runner-up)

Annual fee: $0
Reward rates: Earn 5% cash back on grocery store purchases (Target and Walmart excluded) up to the first $12,000 spent in the first year. You also earn 5% back on travel through Chase Ultimate Rewards® portal and Lyft rides through March 2022, 3% on drugstore and dining, and 1.5% on other purchases with no caps. 
Welcome bonus: Yes
Welcome bonus value: $200
Bonus redemption threshold: Upon charging $500 in the first three months of opening the account
Credit requirement: Good to excellent (670-850)
Intro APR: 0% intro APR for 15 months on purchases
APR for purchases: 14.99% – 23.74% variable
APR for balance transfers: 14.99% – 23.74% variable
Balance transfer fee: $5 or 3% of the amount of each transfer, whichever is higher, on transfers made within 60 days of account opening. After that, 5% ($5 minimum)

The Chase Freedom Unlimited card wins the runner-up spot for best no annual fee credit cards for a few reasons. This card offers an extensive cash-back reward program, allowing you to earn more rewards on grocery store, travel, dining and drugstore purchases than you could with the Wells Fargo Active Cash card. Used strategically, you could earn more rewards than you would with a flat-rate cash-back card, but it would require a decent amount of effort and could lead to overspending. 

This card also offers a $200 welcome bonus when you spend $500 in the first three months of account ownership and a 15-month 0% introductory APR on purchases (14.99% to 23.74% variable APR thereafter). Ultimately, this card might be a better pick for you if you want to maximize grocery store, restaurant and drugstore spending. The Points Guy recommends pairing this credit card with one that earns Ultimate Rewards points, to potentially double your incentives. If you don’t want to plan out your points spending, then we point you back to our number one pick — the Wells Fargo Active Cash card.

Best no annual fee card for cash-back rewards

Annual fee: $0
Reward rates: Earn 5% cash back on selected rotating quarterly categories with a cap of $1,500 each quarter (upon activation). Once you exceed that, you earn 1% back on the rest of your purchases.
Welcome bonus: Discover matches all the rewards earned at the end of your first year with no spending caps. 
Credit requirement: Good to excellent (670 to 850)
Intro APR: 0% intro APR for 14 months on purchases and balance transfers
APR for purchases: 11.99% – 22.99% variable
APR for balance transfers: 11.99% – 22.99% variable
Balance transfer fee: Intro fee of 3% of the amount transferred, then up to 5% (see terms)

While the Wells Fargo and Chase picks offer great cash-back rewards, we’re naming the Discover it® Cash Back* credit card the best cash-back rewards no annual fee card for one simple reason — the cash-back match Discover offers for your first year of membership. 

This card offers generous reward incentives, with bonus categories changing every three months. Now through September, for instance, you can earn 5% cash-back from restaurants and PayPal purchases when you activate (on up to $1,500 in quarterly purchases, then 1%). If you were to maximize the 5% back categories each quarter, you could earn up to $300 in the first year (before the cash-back match, that is). The Discover it® Cash Back card also features a 14-month 0% introductory APR on purchases and balance transfers before moving to a variable rate between 11.99% and 22.99% APR.

Best no annual fee intro APR card

Annual fee: $0
Credit requirement: Good to excellent (670-850)
Intro APR: 0% intro APR for 20 billing cycles on purchases and balance transfers made within 60 days of account opening
APR for purchases: 14.49% – 24.49% variable 
APR for balance transfers: 14.49% – 24.49% variable
Balance transfer fee: 3% of the total balance or $5, whichever is greater

The US Bank Visa Platinum Card* is a no-frills card with no annual fee that won’t earn you rewards — but it’s long 0% introductory APR period on both purchases and balance transfers make it an excellent card for anyone looking to pay down debt. The balance transfer fees are on par with similar cards, but the 20 billing cycle introductory timeframe can offer you extra time to pay down other credit card debt, interest-free (14.49% to 24.49% variable APR thereafter).

Best no annual fee card with customized rewards

Annual fee: $0
Reward rates: Earn 3% back on bonus categories of your choice and 2% on purchases made at grocery stores and wholesale clubs like Costco. For both 3% and 2% categories combined, you receive the maximum incentives until you reach $2,500 quarterly, then the rewards are 1% unlimited. You also gain 1% back on all other purchases. 
Welcome bonus: Yes
Welcome bonus value: $200
Bonus redemption threshold: Charge $1,000 in the first 90 days
Credit requirement: Good to excellent (670-850)
Intro APR: 0% intro APR for 15 billing cycles for purchases and balance transfers made within 60 days of account opening 
APR for purchases: 13.99% – 23.99% variable 
APR for balance transfers: 13.99% – 23.99% variable 
Balance transfer fee: 3% of each transaction with a $10 minimum charge

With the Bank of America® Customized Cash Rewards credit card*, you gain many perks, including no annual fees. Earn a welcome bonus of up to $200 for charging $1,000 in the first 90 days of opening an account. And you’ll also receive a 0% introductory APR for 15 billing cycles on purchases and balance transfers made within 60 days of opening the account. Once it expires, you’ll pay a variable rate between 13.99% and 23.99% APR.

The difference with this card is you choose bonus categories to earn higher rewards, including dining, online shopping, travel and more. And you can maximize your incentives with Preferred Rewards. Based on your balances carried on your accounts with Bank of America and investment accounts with Merrill® (they need to be at least $20,000 to qualify), you can earn 25% to 75% more back. It means with the highest tier, Platinum Honors, you could receive 5.25% back on your bonus category. 

Best no annual fee card for dining and entertainment

Annual fee: $0
Reward rates: Earn 3% back on entertainment, dining, popular streaming services, and grocery stores (excluding superstores like Walmart and Target) with no caps. You also receive 8% back on purchases made on Vivid Seats through January 2023 and 1% back on all other purchases. 
Welcome bonus: Yes
Welcome bonus value: $200
Bonus redemption threshold: Charge $500 within the first 3 months of opening the account
Credit requirement: Good to excellent (670-850)
Intro APR: 0% intro APR for 15 months on purchases
APR for purchases: 15.49% – 25.49% variable
APR for balance transfers: 15.49% – 25.49% variable
Balance transfer fee: $0 at this transfer APR

The Capital One SavorOne Cash Rewards Credit Card* comes loaded with rewards potential. You could receive a $200 welcome bonus just for spending $500 within the first three months from account opening. And with a 0% introductory APR for 15 months on purchases (then a variable rate of 15.49% to 25.49%), you can  finance larger purchases without interest charges. Best of all, there is no annual fee for using the card. 

Moreover, the card’s biggest perk is its cash-back incentives. You earn an unlimited 3% back on all dining and entertainment options and 8% cash back on tickets through Vivid Seats (through January 2023). That’s a lot of jelly for your cash-back donut. Rack up the rewards, then redeem them through PayPal, Amazon, statement credit or cash them out. There are no caps on perks, and they don’t expire as long as you have an active account.

Best no annual fee card for travel rewards

Annual fee: $0
Reward rates: Earn 1.5 points for every dollar spent with no caps
Welcome bonus: Yes
Welcome bonus value: 25,000 points (you can redeem for $250 statement credit on travel and dining)
Bonus redemption threshold: Charge $1,000 in the first 90 days of opening the account
Credit requirement: Good to excellent (670-850)
Intro APR: 0% intro APR for 12 billing cycles on purchases made, balance transfers do not qualify for the introductory APR
APR for purchases: 13.99% – 23.99% variable
APR for balance transfers: 13.99% – 23.99% variable
Balance transfer fee: 3% of the transaction balance or $10 minimum 

The Bank of America® Travel Rewards credit card* rewards you for exploring new places while racking up points. You’ll have no annual fees and receive 25,000 points when you charge $1,000 within the first 90 days of opening the account.

The reward structure is simple. You earn 1.5 points for every dollar spent with no limits or expiration dates. It is the perfect card for the well-balanced traveler who wants rewards but does not want to carry multiple credit cards (one for hotel, one for airlines, etc.) to achieve it. And, with the Preferred Rewards through Bank of America, you can earn 25% to 75% more just for having deposits and investments through them. 

What does ‘no annual fee’ mean?

It means the card issuer will not charge you a yearly cardholder fee. Cards with no annual fees may have other fees though — including security deposits, transaction fees, late payment fees, balance transfer fees and more.

Who is a no annual fee card best for?

Cards without annual fees are best for those new to using credit cards. You can use the card as you like with no fear of not charging enough to justify the annual fee and you still earn cash-back incentives and other rewards. 

Also, if finances become tight and you need to trim expenses, it may make sense to have a no annual fee credit card on hand. Doing so allows you access to it as needed and extends your account history–one of the factors in building your credit score. 

What else to consider about no annual fee cards

If you use your card more and want access to better incentives, it is easy to make the switch.  Alex Miller, CEO and founder of Upgraded Points said, “No annual fee credit cards tend to have a ‘sister’ card with an annual fee. You can upgrade from a no annual fee to an annual fee card, usually with little to no hassle.” With these upgraded cards, you can typically earn even more rewards. 

Are annual fee cards ever worth it?

Sometimes. If you are new to using credit cards or do not plan to charge many expenses, then having a card with an annual fee will not be in your best interest since you do not take advantage of the incentives enough to justify the cost. 

Meanwhile, there are instances where the opposite applies. “Annual fee cards are worth it for people who spend more money because they have much higher bonuses on spending categories,” said John Taylor Garner, CEO and founder of Card Curator. “And their points/miles are worth a lot more, especially when redeemed for travel.”