In this article, there are 10 best no Annual Fee Credit Cards made available on this page. An annual fee is the money you have to pay a credit card company every year. Everyone knows that credit card companies charge money for their services. This service fee sometimes affect your balance and a lot of people are trying to avoid it. Therefore, they are searching for top Credit Cards companies without Yearly Service Charge or Fee Debit payments.
Why do people like dodging this service charge? It is simply because they want to save money without spending it on service fees. Credit Cards given by issuers companies comes with different type of bonuses. It can range from physical cash to hotel/property discount, travel expenses and so on. To help you with more info, we previously wrote about the 10 Credit Card Companies with Sign up Bonus and No Annual Fee. You can check it out for reference purposes.
Best Credit Cards With No Annual Fee for this month
- Chase Freedom Unlimited®: Best feature: Flexible cash back rewards.
- Discover it® Cash Back: Best feature: Cash back on everyday purchases.
- Blue Cash Everyday® Card from American Express: Best feature: Cash back on everyday purchases.
- Citi Custom Cash℠ Card: Best feature: Simple bonus category redemption.
- Discover it® Balance Transfer: Best feature: 0% introductory APR.
- Chase Freedom Flex℠
- Discover it® Miles
- Discover it® chrome
- Capital One VentureOne Rewards Credit Card
- Citi Rewards+® Card
What You will Learn in this Article
At the end of this article, you will discover that a no-annual-fee credit card does not actually charge you each year simply for using the card. However, it still comes with a variety of beautiful benefits as well as rewards. This means that you actually can have a wonderful credit card without a single worry about your yearly rewards paying off the yearly fee. But not that Terms and Conditions apply.
Top 10 Credit Cards without Yearly Service Charge Summary
1. Chase Freedom Unlimited®
Why this is one of the best Credit Cards without Yearly Service Charge: INTRO OFFER: Cardholders can freely earn an additional 1.5% cash back on everything they buy. (This amount can be on up to $20,000 spent in the first year). That alone is seriously worth up to $300 cash back! In addition, this Chase Freedom Unlimited cards gives a 5% cash back on travel.
However, you have to purchase your plan ticket through Chase Ultimate Rewards. You can still get a 3% cash back on dining and drugstore purchases as well as 1.5% cash back on any other purchases done online or on POS. The Chase Freedom card includes a 0% Intro APR for 15 months from account opening date on POS and online purchases. This also includes balance transfers (then note that a 16.49% – 25.24% variable APR applies later).
2. Discover it® Cash Back
Why this is one of the Credit Cards without Yearly Service Charges: The Discover it Cash Back offers 5% cash back after 3 months of account opening in rotating categories usage. These categories includes Amazon.com, approved grocery stores, eateries & restaurants, gas stations.
You even benefit when you pay using PayPal, up to the 90 days (quarterly) maximum when you activate. Going by this, all other purchases only earn unlimited 1% cash back. The bottom line is that ‘Discover it’ Cardholders pay no annual fee. Finally, they will match your cash back earnings at the end of the first 12 months.
3. Blue Cash Everyday® Card from American Express
Why this is one of the best Credit Cards without Yearly Service Charge: Reasons is that Blue Cash Everyday Card gives their cardholders a solid 3% cash back at U.S. supermarkets. (Seriously, this can be up to $6,000 annually, then 1% later). You can still get a 3% Cash Back at U.S. gas stations, on up to $6,000 per year too, then 1% later on.
Furthermore, users get 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1% after on. Also attractive is the 12-month introductory 0% APR on purchases from the date of account opening (then a variable rate 16.24% – 27.24%) and the introductory bonus. New cardholders earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
4. Citi Custom Cash℠ Card
Why this is one of the best credit cards with no annual fee: Citi Cardholders can earn five percent cash back in the category where they spend the most each billing cycle. This is usually a small amount of up to $500 in spending.
Secondly, this category automatically adjusts each billing cycle based on the cardholder’s spending habits. In turn, it allows for maximizing cash back rewards without paying an annual fee or signing up for rotating bonus categories.
5. Discover it® Balance Transfer
Why is the Discover it® Balance Transfer among the best cards with no annual fee: The credit card comes with an 1yr, 6months and 0% introductory APR on eligible balance transfers. Furthermore, it gives a 120 days 0% introductory APR on purchases.
Therefore, all cardholders can simply pay off a balance over time without incurring interest charges of any kind. In the same vein, the “Discover it” cardholders can get 5% cash back in a rotating category up to a maximum amount each 90 days after activation. There is also a 1% cash back on other spending as another bonus.
6. Chase Freedom Flex℠
Why this is one of the best no-annual-fee cards: There are several reasons of choosing Chase Freedom Flex on the list but the special one is that earning of rewards varies. Secondly, they charge no annual fee.
It is verified that you’ll get a $200 cash bonus by spending $500 on the card within the first 90 days. Thirdly, there’s a 0% Intro APR for 15 months from account opening on purchases & balance transfers (then a 16.49% – 25.24% variable APR applies) Chase Freedom Flex is very reliable too.
7. Discover it® Miles
Why this is one of the best no-yearly-fee cards: Discover it Miles earns an unlimited 1.5 miles per dollar on every purchase. It can be redeemed for cash or travel. In fact, Discover credit card will automatically match all the miles you’ve possibly earned at the end of your account opening anniversary.
The major reason here is that Cardholders pay no annual fee at all. Lastly, you will get a 15-month 0% introductory annual percentage rate on purchases (after that period, 13.49% to 24.49% Standard Variable Purchase APR will apply to all transactions).
8. Discover it® chrome
Why this is one of the best no-annual-fee cards: Most of the discover products has similar packages. The Discover it chrome therefore gives cardholders a 15-month 0% introductory annual percentage rate on purchases.
It also balance transfers (then a 13.49% to 24.49% Variable APR applies). The card charges no annual fee. Gas and restaurant purchases earn 2% cash back on up to $1,000 in combined spending each quarter, and all other purchases get 1% back.
9. Capital One VentureOne Rewards Credit Card
Why this is one of the best Credit Cards without Yearly Service Charge: Just like the others, Capital One VentureOne Rewards Credit Card without Yearly Service charges. It also offers a 0% introductory APR for 15 months on purchases and balance transfers. That is, a variable APR of 16.49% – 26.49%.
After that grace period; 3% fee on the amounts transferred within the first 1 year and 6 months. All the Cardholders usually earn an unlimited 1.25 miles per dollar on every purchase. Additionally, 5 miles per dollar on hotels and rental cars are booked through Capital One Travel services. Finally, users can earn an additional 20,000 bonus miles once they can spend $500 within the first 90 days of opening the account.
10. Citi Rewards+® Card
First, the Citi Rewards+ Card best Credit Cards without Yearly Service Charge. It also offers 20,000 bonus points if you spend $1,500 in purchases with your card within 90 days of receiving the card. Notably, you can only redeem the $200 in gift cards at thankyou.com. Just login to their website to access your gift.
Moving on, you will additionally get two points per dollar at gas stations and supermarkets. (This can be up to $6,000 spent per year, then one point per dollar). In conclusion, it also rounds up to the nearest 10 points on every thing you buy, a unique advantage that can add up.
When Should You Get a Credit Cards without Yearly Service Charge?
A credit card with no monthly or annual fee could make the most sense for the user, depending on their spending habits and needs. If you can spend much monthly, then this type of credit card can be a good choice with the following reasons:
- If you can’t afford the extra cost. In as much that you may not pay an annual fee, be aware that no-annual-fee credit cards may charge other fees. These charges includes; late fees, balance transfer fees and foreign transaction fees.
- Cardholder is not a big spender. In general terms, a card with an annual fee provides more value than a card without one. Also, the higher the fee, the better the benefits. Thats the truth. However, you will need to be able to earn enough rewards to offset the annual fee, even though you use all the benefits or not.
- You need a starter or credit-builder card. Check yourself out, whether you want to build or rebuild credit, you can as well locate several no-annual-fee cards to help you reach your goal. Bear in mind that all this type of credit card does not require a strategy for earning rewards to offset the annual fee. This solely means you could keep the credit card open at no extra cost. This can be continuous even after you upgrade.
- You would like a card with a 0% introductory annual percentage rate. Here, you don’t need to pay extra for 0% APR credit cards, even the other ones with long introductory offers.
- You want to diversify your payment wallet. Here, if you are an experienced credit user with only top-tier cards in your wallet, you might like to add a no-annual-fee card.
What Are the Downsides of Credit Cards without Yearly Service Charge?
While paying no annual fee certainly has its advantages, be sure to consider the downsides:
- Don’t expect top-tier advantage. While not always the case, the most lavish benefits usually accompany credit cards that charge a higher annual fee. These perks may include free airline flights, statement credits, complimentary airport lounge visits and concierge service, among others.
- Plan to pay a higher interest rate. The money you save on the annual fee might be lost if you carry a balance or use your card for cash advances, as you’ll likely pay a higher interest rate.
- Look out for higher fees. Be sure your no-annual-fee credit card doesn’t charge more for cash advances, balance transfers or foreign transactions if you anticipate needing any of these services.
How Do No-Annual-Fee Credit Cards Compare With Their Annual-Fee Counterparts?
You might be willing to fork over an annual fee for your credit card if the value of your rewards and benefits outweighs the fee. Generally, cards that charge annual fees come packed with perks, and you can come out ahead despite the cost.
No matter what type of credit card you want, be sure to compare options with and without annual fees. These examples can show you how an annual fee may – or may not – pay off.
What to Consider Before Switching to a Credit Cards without Yearly Service Charge
For cardholders who no longer want to pay an annual fee, switching to a no-fee card can be as simple as contacting your credit card issuer. But before you do, here are a few things to keep in mind:
- Know what will happen to your points. If you want to stay with the same issuer and just downgrade to a card with no annual fee, your points might be unaffected. However, if you plan to close the account and open a card from a different issuer, you may forfeit any points you’ve earned. The easy solution is to use your points before making a move to another card. But keep in mind that closing an account can lower your credit score.
- Know when you’re eligible to switch. You probably will not be able to downgrade your card within the first year the account is open. Ask your issuer if you aren’t sure.
- Don’t be afraid to shop around. Closing a credit card account can lower your credit score, but you can still look for the best no-annual-fee card you can qualify for if you have very good credit – a FICO score of 740 to 799 – and can afford to take a small hit to your score.
- If you downgrade, stipulate to the issuer that you don’t want to apply again. Be clear about this point so that the customer service representative doesn’t perform a hard inquiry on your credit, which can damage your credit score.
Why Should You Consider Downgrading to a Credit Cards without Yearly Service Charge?
If a card with a big annual fee is collecting dust in your wallet and you can’t justify the cost, you may want to downgrade to a Credit Cards without Yearly Service Charge that better suits your spending habits. Switching from one type of credit card to another with the same issuer, whether you are downgrading or upgrading, is known as a product change.
Asking for a product change rather than canceling your account avoids hurting your credit utilization ratio – the percentage of your total available credit you use – and credit history length, which can affect your credit score.
You could be ready to downgrade to a card with no annual fee if:
- You aren’t using a card much. If you aren’t earning many rewards or making the most of perks, keeping a card with an annual fee doesn’t make sense.
- You are paying for two similar cards that both charge annual fees. You could downgrade the one you use the least.
- You need to reduce your spending. When you experience a life change that affects your finances, such as a job loss or an addition to your family, you may no longer be able to justify paying an annual fee for a credit card.
- You’ve found a card that works better for you. A product change ensures that you won’t lose your available credit or credit history, which could damage your credit score.
How to Choose the Right Credit Cards without Yearly Service Charge for You
Consider your credit card needs and how you will use the card:
- What is the interest rate? If you plan to carry a balance or use the card for cash advances, this might be the most important question when choosing a card.
- What will I pay in fees? If you’re considering a balance transfer or frequently travel outside of the country, look closely at the fees you’ll pay.
- What additional benefits will I get? Is rental car insurance important to you? Would you like 100% fraud protection? Be sure to look at the extra benefits each potential card offers.
Best No-Annual-Fee Credit Cards Methodology
Our guide has been helping consumers make money decisions for several years. For our Best No-Annual-Fee Credit Cards list, we consider issuer satisfaction data, rewards earning rate as well as annual percentage rate. We also took cognisance of the introductory APR length for purchases and sign-up bonus value. Issuer satisfaction data is based on an annual nationwide consumer survey online.
According to our research, the top picks for cards that don’t charge an annual fee offer a range of rewards and benefits. Most of the credit cards earn cash back, others collect miles, together with other feature introductory APRs on purchases and balance transfers. Lastly, you can definitely explore which card might be a good fit based on your spending habits and goals. Now take a look at some of our trending posts and guide on credit cards.
FAQ: Credit Cards without Yearly Service Charge
1. What Does No Annual Fee Mean?
A credit card with no annual fee does not charge you each year simply for having the card. An annual fee can help the issuer offset the cost of card benefits and features. Still, cards with no annual fees can provide plenty of value, sometimes offering rewards for each dollar you spend, 0% annual percentage rate offers, sign-up bonuses and more.
2. Can You Get a Credit Cards without Yearly Service Charge if You Have Bad Credit?
You’ll find a few cards for bad credit with no annual fees, but they are exceptions. The best cards for people with bad credit are secured cards and cards for building or rebuilding your credit, which can help you upgrade to better cards if used responsibly. But a secured card requires a security deposit, which is typically equal to your line of credit, and some cards for people with bad credit have annual fees. Try to pick a card that charges no annual fee or a low annual fee and reports to all three major credit bureaus.
3. Are Credit Cards without Yearly Service Charge Worthwhile?
A credit card with no annual fee is the most economical choice, especially if you don’t plan to use your card often. But rest assured, the best cards with no annual fees do come with plenty of perks, such as 0% introductory APR, low interest rates and enticing rewards. These cards could deliver more value than cards with annual fees, depending on your spending habits.
4. When Are Annual Fees Worthwhile?
To be sincere, this depends on the value you get from the card. For you to completely sign-up bonus alone or even the right blend of benefits can cover the annual fee. You can enjoy this without factoring in rewards earnings, and generally, a no-annual-fee card doesn’t have the same potential.
You might want to pay an annual fee for a credit card when:
- The card has a sign-up bonus that makes up for the fee. The Citi Premier Card, for instance, offers 80,000 bonus points after you spend after you spend $4,000 in purchases within the first 3 months of account opening.
- The rewards you can earn from everyday spending and the benefits eclipse the fee. A card that charges an annual fee often comes with many valuable benefits, such as extended warranty protection, roadside assistance and rental car insurance. These benefits may not be available from cards that don’t charge an annual fee.
- The card comes with travel perks worth more than the annual fee. With an airline credit card, the more you fly, the more valuable the card. A co-branded hotel credit card can be worth the annual fee for frequent travelers who want elite status and its perks, and general travel credit cards can provide big sign-up bonuses, annual travel credits and other benefits. For some users, simply getting points or miles and then redeeming them for travel can provide enough value to compensate for the annual fee.
- The only card you can qualify for charges an annual fee. Starter or secured credit cards can be an option if you are trying to build or rebuild credit, but some of these cards charge annual fees. A secured credit card also requires a deposit to establish the credit line.
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