Are you tired of paying annual fees on your credit cards? If so, you’re not alone. According to a recent study by NerdWallet, the average American pays $147 in annual fees on their credit cards. That’s a lot of money that could be going towards other things, like your savings or debt repayment.
Fortunately, there are a number of credit cards available with no annual fee. These cards can save you a significant amount of money over time, and they can also help you improve your credit score.
Here are six of the best credit cards with no annual fee:
1. Discover it® Cash Back
The Discover it® Cash Back card is a great option for people who want to earn cash back on their everyday purchases. The card offers 5% cash back on rotating categories each quarter, up to $1,500 in spending per quarter. You’ll also earn 1% cash back on all other purchases.
The Discover it® Cash Back card has no annual fee, and it comes with a 0% introductory APR on purchases for the first 15 months. After that, the APR will vary based on your creditworthiness.
**Pros:**
- 5% cash back on rotating categories each quarter
- 1% cash back on all other purchases
- No annual fee
- 0% introductory APR on purchases for the first 15 months
**Cons:**
- Rotating cash back categories can be unpredictable
- 1% cash back rate on all other purchases is low
2. Capital One Platinum Credit Card
The Capital One Platinum Credit Card is a good option for people who have bad credit or no credit. The card has no annual fee, and it comes with a low APR of 19.88%. You’ll also get access to free credit monitoring and identity theft protection.
The Capital One Platinum Credit Card is not a rewards card, so you won’t earn any cash back or points on your purchases. However, it can be a good way to build your credit score and improve your financial health.
**Pros:**
- No annual fee
- Low APR of 19.88%
- Free credit monitoring and identity theft protection
**Cons:**
- Not a rewards card
- High interest rates on balance transfers and cash advances
3. Chase Freedom Unlimited®
The Chase Freedom Unlimited® card is a great option for people who want to earn cash back on all of their purchases. The card offers 1.5% cash back on all purchases, and there’s no limit to how much cash back you can earn.
The Chase Freedom Unlimited® card has no annual fee, and it comes with a 0% introductory APR on purchases for the first 15 months. After that, the APR will vary based on your creditworthiness.
**Pros:**
- 1.5% cash back on all purchases
- No annual fee
- 0% introductory APR on purchases for the first 15 months
**Cons:**
- Lower cash back rate than some other cards
- No sign-up bonus
4. Citi Double Cash Card
The Citi Double Cash Card is a great option for people who want to earn cash back on their everyday purchases and on their balance transfers. The card offers 1% cash back on all purchases, and an additional 1% cash back when you pay off your balance each month.
The Citi Double Cash Card has no annual fee, and it comes with a 0% introductory APR on balance transfers for the first 18 months. After that, the APR will vary based on your creditworthiness.
**Pros:**
- 1% cash back on all purchases
- Additional 1% cash back when you pay off your balance each month
- No annual fee
- 0% introductory APR on balance transfers for the first 18 months
**Cons:**
- Lower cash back rate than some other cards
- No sign-up bonus
5. American Express® Blue Cash Everyday® Card
The American Express® Blue Cash Everyday® Card is a great option for people who want to earn cash back on their everyday purchases, including groceries, gas, and online shopping.
The card offers 3% cash back on groceries, 2% cash back on gas and online purchases, and 1% cash back on all other purchases. There’s no limit to how much cash back you can earn, and you can redeem your cash back as a statement credit, gift card, or check.
The American Express® Blue Cash Everyday® Card has an annual fee of $25, but it’s waived for the first year. After that, the annual fee is worth it if you spend enough money on groceries, gas, and online shopping to earn more than $25 in cash back each year.
**Pros:**
- 3% cash back on groceries
- 2% cash back on gas and online purchases
- 1% cash back on all other purchases
- No limit on how much cash back you can earn
**Cons:**
- $25 annual fee
- Lower cash back rate on all other purchases
6. Bank of America® Cash Rewards Credit Card
The Bank of America® Cash Rewards Credit Card is a great option for people who want to earn cash back on their everyday purchases and on their balance transfers. The card offers 3% cash back on gas, 2% cash back on groceries and dining, and 1% cash back on all other purchases.
The Bank of America® Cash Rewards Credit Card has no annual fee, and it comes with a 0% introductory APR on purchases and balance transfers for the first 15 months. After that, the APR will vary based on your creditworthiness.
**Pros:**
- 3% cash back on gas
- 2% cash back on groceries and dining
- 1% cash back on all other purchases
- No annual fee
- 0% introductory APR on purchases and balance transfers for the first 15 months
**Cons:**
- Lower cash back rate on all other purchases
- No sign-up bonus
Which Credit Card With No Annual Fee Is Right for You?
The best credit card with no annual fee for you depends on your individual needs and spending habits. If you want to earn cash back on all of your purchases, the Chase Freedom Unlimited® card is a great option. If you want to earn cash back on groceries, gas, and online shopping, the American Express® Blue Cash Everyday® Card is a good choice. And if you have bad credit or no credit, the Capital One Platinum Credit Card is a good option to help you build your credit score.
No Annual Fee Credit Cards: A Comparison
The following table compares the six credit cards with no annual fee that we discussed in this article:
Feature | Discover it® Cash Back | Capital One Platinum Credit Card | Chase Freedom Unlimited® | Citi Double Cash Card | American Express® Blue Cash Everyday® Card | Bank of America® Cash Rewards Credit Card |
---|---|---|---|---|---|---|
Annual fee | $0 | $0 | $0 | $0 | $25 (waived for the first year) | $0 |
Cash back rewards | 5% on rotating categories each quarter, up to $1,500 in spending per quarter; 1% on all other purchases | None | 1.5% on all purchases | 1 |