Even though credit cards with annual fees can be worth it, you can pay less to get rewards and benefits from your credit card. If you don't want to pay an annual fee or only plan to use your credit card occasionally, a card with no annual fee is a good choice.
Using a credit card with no annual fee is the best way to get the most rewards and pay the least money. Check some of the best no-annual-fee credit cards below.
Bank of America Customized Cash Rewards Credit Card
Many credit cards give bonus points for spending in certain categories, but the Bank of America Customized Cash lets you make the most of your spending based on how you live. You can get 3% cashback on gas, online shopping, restaurants, home improvements, and more each month.
You also get 2% cashback on groceries and wholesale clubs for the first $2,500 you spend each quarter and 1% cashback on everything else. For example, you could set your 3% bonus category to home improvements one month and switch it to gas the next month if you were going on a road trip.
With this card, you can choose how you want to spend your money, and there is no annual fee. When you open a Bank of America Customized Cash Rewards credit card account and spend $1,000 on purchases within the first 90 days, you get a small $200 cashback bonus.
Also read: Bank of America Cash Rewards Credit Card – How to Apply
Bank of America Travel Rewards Credit Card
The Bank of America Travel Rewards credit card is a great place to start if you're new to credit cards and travel rewards. This is the best card to take with you when you travel abroad because there are no annual fees and no fees for using it in other countries. No matter what you buy, you will get 1.5 points for every dollar.
If you spend $1,000 or more in the first 90 days, you'll get 25,000 bonus points for your next trip. This is worth $250 and can be used as a statement credit toward any travel purchase, including flights, hotels, and tours.
There are no bonus categories, limits on how much you can earn, or transfer partners. You won't have to worry about restrictions on bookings when you use your points, and you won't have to pay any fees when you use your card outside the US.
Capital One Quicksilver Cash Rewards Credit Card
The Capital One Quicksilver Cash Incentives Credit Card is an excellent option for people who desire straightforward rewards. This card offers a flat cashback rate of 1.5% on all transactions, which is easily redeemed and has no minimum.
Because of its easy, flat 1.5% cashback earning rate, the Capital One Quicksilver is ideal for individuals who use one card for all purchases. If you use something other than bonus spending categories such as dining, entertainment, and grocery, or if you prefer to avoid carrying multiple cards when you're out and about, you should earn at least 1% cashback on all purchases.
The Capital One Quicksilver is not the card to obtain if you desire premium credit card advantages such as lounge access or trip credits. Nevertheless, Quicksilver does offer some benefits, such as no foreign transaction fees and the following perks.
- 24-hour travel help services for lost or stolen credit cards
- Travel accident insurance
- Concierge assistance
- Access to exclusive dining gourmet experiences, sporting events, and musical performances
Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card is the version of the Capital One Savor Cash Rewards Credit Card that does not charge an annual fee. The second one has an annual fee of $95 and gives 4% cashback on dining, entertainment, and certain streaming services.
The Savor card gives 3% cashback on groceries and 1% everywhere else. In some categories, that's only 1% better than the Capital One SavorOne. So, the SavorOne is a great choice if you don't want to pay an annual fee but still want a great cashback return on meals, groceries, and entertainment.
The Capital One SavorOne is a good card to consider if you like getting food delivered and streaming content but don't like paying annual fees. You'll earn 3% cashback on eating out, going to the movies, using popular streaming services, and shopping at grocery stores. However, this does not apply to big stores like Walmart and Target.
Chase Freedom Unlimited
Annual fee-free, new and seasoned travelers can earn points with Chase Freedom Unlimited. Freedom Unlimited gives 1.5% back on non-bonus categories. This turns premium Chase Ultimate Rewards points into fully transferable points, tripling their value.
The Freedom Unlimited can be a great card if you are new to points and miles. The card is easy to get, and it helps you build a relationship with Chase so you can get better cards from the company in the future, like the Chase Sapphire Preferred Card or the Chase Sapphire Reserve.
Freedom Unlimited has no annual fee, so you can keep it open for many years without paying anything. Also, as long as you keep the card open, the rewards you earn will always be there. The card also comes with enticing perks like 120-day purchase protection and extended warranty protection, which adds an extra year to the warranties of eligible manufacturers.
Also read: Freedom Unlimited Credit Card – How to Order
Citi Double Cash Card
The Citi Double Cash Card is one of the best cashback cards since it offers up to 2% cashback on all transactions (1% when you buy and 1% when you pay for it) and has no annual fee. Open a Citi Double Cash Card and spend $1,500 in the first six months to obtain a $200 cashback sign-up bonus.
You automatically get cashback in the form of ThankYou points, which gives you more options for how to spend your hard-earned rewards. Also, you can get more value for your points if you have a Citi Premier Card or Citi Prestige Card, which are no longer available to new applicants.
You can use the Citi Double Cash Card as a cashback card, but you can also use the Citi Premier Card or Citi Prestige Card to turn your cashback into fully transferable ThankYou points. This lets you transfer your points to a wide range of hotel and airline partners.
Also read: Learn How to Order a Citi Double Cash Card
Citi Rewards+ Card
With the Citi Rewards+ Card, those small purchases you make every day will add up. All purchases are rounded up to the nearest 10 points, so a $3 bagel gets you 10 points. Plus, you'll get two points for every dollar you spend on groceries and gas for the first $6,000 yearly.
After that, you'll earn one point for every dollar you spend on everything else. You can buy gift cards, travel, and more with enough points. Citi will also match 10% of the first 100,000 points you redeem each year into your account.
Most cardholders will get the most value out of their points if they trade them in for gift cards at a rate of 1 cent per point. But your rewards can be worth even more if you also have a Citi Prestige Card or a Citi Premier Card (which gives you 80,000 bonus points if you spend at least $4,000 in the first three months of having an account).
Hilton Honors American Express Card
The Hilton Honors American Express Card is the brand's entry-level card, and there is no annual fee. With 7 points per dollar spent on eligible Hilton purchases and free Silver status in the Hilton Honors program, this card is a good choice for new cardholders loyal to the hotel chain. However, other travel cards give you more flexibility with your points.
The Hilton Honors program lets you earn and spend points at more than 6,400 hotels in almost 120 countries. You can use this card if you just joined Hilton Honors but have yet to stay there enough times to get elite status.
When you sign up for the Hilton Honors American Express card, the welcome offer allows you to earn 80,000 Hilton Honors bonus points if you spend $1,000 in the first three months.
Ink Business Cash Credit Card
The Chase Ink Business Cash Credit Card gives you 5% cashback on office supplies and certain utilities and 2% cashback at restaurants and gas stations. Many businesses spend a lot of money in these areas, which makes the Chase Ink Business Cash a good small-business credit card with no annual fee.
Unlike a typical cashback card, the Chase Ink Business Cash Card lets you earn cashback rewards and transfer them to Ultimate Rewards points if you have a Chase Ultimate Rewards card.
If your business is just starting or has erratic cash flow, you may like that the Chase Ink Business Cash Card gives you 0% APR on purchases for the first year after you open an account. After the introductory period, the APR goes up to a variable rate between 16.24% and 22.24%.
Ink Business Unlimited Credit Card
The Ink Business Unlimited Credit Card is one of the best business cards with no annual fee because it provides 1.5% back on every purchase. The card also has a $900 cash bonus, the highest it has ever been. You can get it if you spend $6,000 in the first three months after getting the card.
Even though other cards give 1.5% cashback or more, the Ink Business Unlimited card gives cashback in the form of Chase Ultimate Rewards points. Suppose you link your Ink Business Unlimited card to another Ultimate Rewards card. In that case, you can combine your Chase points and transfer them to the Ultimate Rewards program's airline and hotel partners.
The Ink Business Unlimited is designed for people who own small businesses. Even though not everyone can get a business credit card, it may be easier to get approved than you think.
Conclusion
A credit card with no annual fee is the way to maximize rewards while keeping expenses low. A credit card without an annual fee is a fantastic option if you don't want to pay the cost or will only use the card occasionally.
Note: Consider the risks involved in using credit products before applying by consulting the issuing institution’s terms and conditions.
