10 best no annual fee credit cards in June 2024 (2024)

The best credit cards with no annual fee can look very attractive: You won’t pay for the privilege of carrying them in your wallet, you can earn a welcome bonus and you can earn ongoing rewards. However, no annual fee credit cards are not all created equal. While they all share the lack of an upfront yearly cost, there’s a lot more to consider including welcome bonuses, cash back and points-earning opportunities, and other benefits. Additionally, you’ll need to think about a related question: Could a card with an annual fee be worth it?

Is a no annual fee credit card right for you?

A no annual fee credit card may be a good choice for you if you prefer not to spend money upfront for the privilege of using a card — even if the benefits and rewards you receive are more valuable than the fee. You’ll also want to ask yourself these questions before you commit to a card:

• How much are you planning to use the card? If you don’t plan to charge many purchases to the card, a no annual fee card may be the best option for you.
• What does your credit history look like? If you have a limited credit history or past negative marks on your profile, you may not qualify for the best no annual fee credit cards. Instead, you may need to consider the best cards for bad credit, which also do not charge annual fees.
• What is your regular spending routine? Consider the potentially high rewards rates on a card with an annual fee for categories such as grocery shopping, travel and dining out. If you spend a lot in a certain area, you may be able to easily offset an annual fee with your rewards.

What are no annual fee credit cards?

No annual fee credit cards are exactly what they sound like: They are cards that do not charge a yearly cost for an account. However, you can still wind up paying other costs for using the card. If the card charges foreign transaction fees, you will need to pay if you use it for international spending. And if you transfer a balance from another card, be prepared to pay a cost based on the total transfer amount.

Some credit cards advertise a $0 annual fee in the first year, but then charge an annual fee starting in the second year. These are not part of the no annual fee credit card category. Instead, they offer a lower cost to sweeten the deal for new customers.

Pros and cons of no annual fee credit cards

Applying for a new credit card is a big financial decision that will impact your credit. Before you decide to add a new card to your wallet, weigh the potential advantages and drawbacks of credit cards with no annual fees.

Pros

• No yearly cost for using the card
• May offer welcome bonuses
• May offer bonus points and cash back opportunities for certain spending categories

Cons

• May offer smaller welcome bonuses than cards with an annual fee
• May offer smaller rewards payouts than premium cards with annual fees
• May still charge other fees

How to choose the best no annual fee credit card for you

Know your credit score and card options

While lenders rarely offer public information about exact credit score requirements, your score will play a key role in your application. Some credit cards with no annual fee are reserved for those with good to excellent credit.

For example, the Capital One SavorOne Cash Rewards Credit Card*The information for the Capital One SavorOne Cash Rewards Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. and Capital One VentureOne Rewards Credit Card*The information for the Capital One VentureOne Rewards Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. both require excellent credit, which Capital One defines as having never declared bankruptcy or defaulted on a loan, having never missed a bill’s due date by more than 60 days and having already maintained a loan or a credit card for at least three years with a minimum credit limit of $5,000.

Know what kind of rewards you want to earn

No annual fee credit cards earn different types of rewards. Some offer straightforward cash back that you can apply as statement credits or convert into cash. Others earn points that act as a currency in the issuer’s rewards program that you may be able to spend on travel, merchandise, gift cards and more. If you are a frequent traveler, you may be well-suited for a co-branded card, such as the IHG One Rewards Traveler Credit Card*The information for the IHG One Rewards Traveler Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , that will earn points or miles for one airline or hotel brand you really love.

Evaluate your spending habits

Some no annual fee credit cards pay a flat rewards rate that applies to every purchase, and others pay higher rates in certain spending categories. Look at your online banking statements to analyze past spending patterns and determine which kind of rewards structure is a better fit. For example, if you do all the grocery shopping for your household or you do a lot of driving for work, look for a card that offers elevated earning potential at supermarkets or gas stations.

Consider what other benefits are important to you

In addition to avoiding an annual fee, think about your other priorities for a new card. Do you travel outside the US? You’ll want to find a card that doesn’t charge any foreign transaction fees. Are you working to pay off another credit card? Look for a card that offers a 0% introductory APR on balance transfers. While you will likely still need to pay a one-time fee to transfer the balance, you may be able to get up to 21 months of interest-free time to tackle that debt.

How to maximize your no annual fee credit card

With a no annual fee credit card, you’re looking at all upside since you don’t have to hit any rewards amount to break even. With that in mind, follow these tips to make the most of carrying that card in your wallet:

• Hit your welcome bonus spending threshold. Some no annual fee credit cards offer bonuses if you spend a certain amount of money shortly after opening the account. A common offer is a $200 welcome bonus after spending $500 in the first three months.
• Take advantage of any introductory APR offer. Your card may offer an introductory period with a 0% APR, which can be valuable in paying off big purchases without racking up any financing charges. In some cases, the 0% offer also applies to balance transfers, which can help you save money if you have been struggling to pay down another credit card. If you are planning to transfer a balance, do it with a defined strategy to get that debt down to zero.
• Know when to use it. If you’re carrying multiple credit cards in your wallet, know which card is best for certain spending situations. For example, if your no annual fee credit card pays an elevated cash back rate at drug stores or grocery stores, make sure you’re using it to rack up more value.
• Pay your balance in full every month. Consider this to be your golden rule that applies to every kind of credit card, regardless of its fee structure. As long as you pay off your statement balance on time, you won’t pay any interest.

Are credit cards with annual fees worth it?

Paying an annual fee for a credit card can work in your favor, particularly if the card offers a sign-up bonus. And if the rewards structure aligns with your regular spending habits, you can justify paying the cost each year based on your ability to accumulate enough points or cash back to deliver a greater value than the annual fee.

When a no annual fee card isn’t ideal

Consider the breakdown between the Chase Sapphire Preferred® Card (one of the best rewards credit cards) and the Chase Freedom Flex℠*The information for the Chase Freedom Flex℠ has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. :

For regular travelers who are booking reservations directly with hotels and buying flights directly with airlines, the Chase Sapphire Preferred® Card’s 2x points on travel can justify the annual fee. For example, spending $5,000 on non-Chase Travel each year will earn $100 in rewards ($125 in value when redeemed for travel via Chase). Additionally, for travelers who will take advantage of booking via Chase, the $50 annual hotel credit for the Chase Sapphire Preferred® Card can offset more than half the card’s annual fee.

Consider, too, if you value benefits such as free checked bags, statement credits or top-tier travel protections that you don’t often find on no annual fee cards.

For example, when you have the Delta SkyMiles® Gold American Express Card*The information for the Delta SkyMiles® Gold American Express Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. (terms apply, see rates and fees), you’ll get a free first checked bag on Delta flights and priority boarding for yourself and up to eight companions on the same reservation. Delta charges $30 each way for the first checked bag, so if you fly Delta even a few times a year, you could easily recoup the card’s $0 introductory annual fee for the first year, then $150.

All information about Delta SkyMiles® Gold American Express Card has been collected independently by CNN Underscored.

In comparison, the no annual fee Delta SkyMiles® Blue American Express Card*The information for the Delta SkyMiles® Blue American Express Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. doesn’t offer free bags or priority boarding, so if you frequently pay to check bags, you’ll likely save money by choosing a Delta credit card with an annual fee.

All information about Delta SkyMiles® Blue American Express Card has been collected independently by CNN Underscored.

Annual fee credit cards vs. no annual fee: Do the math

To figure out if paying an annual fee for a credit card makes sense, you’ll need to make some calculations. First, look at the card’s rewards categories. Estimate how much you spend each year in those categories, and use that figure to find the annual value of the rewards you’d earn.

If that value is higher than the annual fee, you can feel confident that the card is a good deal, as long as you don’t incur interest charges or transaction fees on the card. However, you’ll also want to consider the no annual fee version of the card (if there is one) to see how big the rewards difference is. Also weigh the card’s other benefits and how much they’re worth to you.

For simplicity, let’s look at a single spending category. The Blue Cash Preferred® Card from American Express*The information for the Blue Cash Preferred® Card from American Express has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. (terms apply, see rates and fees) is on our best credit cards for groceries list for its high cash back earning rates: 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other eligible purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.

All information about Blue Cash Preferred® Card from American Express has been collected independently by CNN Underscored.

If you spent $6,000 in a year at U.S. supermarkets, you’d earn a total of $360 ($6,000 x 6%). That’s much more than the card’s $0 intro annual fee for the first year, then $95. Even after the first year, you’d have a net gain of $265 ($360 – $95).

However, the no annual fee Blue Cash Everyday® Card from American Express*The information for the Blue Cash Everyday® Card from American Express has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. (terms apply, see rates and fees) may be more appealing if you don’t spend as much on groceries. That card earns 3% cash back at U.S. supermarkets, U.S. gas stations, and online retail purchases in the U.S. on up to $6,000 in each category per year in purchases (then 1%) and 1% cash back on other eligible purchases.

All information about Blue Cash Everyday® Card from American Express has been collected independently by CNN Underscored.

With the Blue Cash Everyday Card, if you spent $6,000 at U.S. supermarkets in a year, you’d net $180 in rewards ($6,000 x 3%). That’s less than you’d gain by spending the same amount on the Blue Cash Preferred, but what if you don’t spend that much on groceries?

Here’s how to find the break-even point: If you divide $95 (the Blue Cash Preferred’s annual fee after the first year) by 3% (the percentage-point difference between the earning rates), you’ll get $3,166.67.

Spend exactly that, and you’ll earn the same net amount on groceries with either card — $0 with the Blue Cash Everyday Card, and $0 intro annual fee for the first year, then $95 ($190 – $0 intro annual fee for the first year, then $95 annual fee) with the Blue Cash Preferred.

If you spend less than $3,166.67 on groceries annually, you’ll be better off with the no annual fee Blue Cash Everyday Card. Spend more, and the Blue Cash Preferred will net you more cash back, even with the annual fee.

Now who said you’d never use your high school algebra in real life?

Methodology

Our money and data analytics teams evaluated over 200 credit cards that do not charge an annual fee. From there, we narrowed down our list of the best no annual fee credit cards by giving them a star rating out of five, based on the following factors and our editorial judgment:

Rewards value (30%)

Not all credit card points and miles have the same value. We used spending data from the Bureau of Labor Statistics and valuations from The Points Guy to determine which cards dole out the best rewards value.

Welcome bonus value (30%)

Many cards offer bonus cash back, points or miles to consumers who spend a certain amount in their first months with the card. We calculated how much those bonuses are worth using points valuations from The Points Guy, and boosted cards that offer more value.

Benefits (20%)

Cards that offer benefits such as cell phone protection, purchase protection, extended warranty and a 0% introductory APR on purchases and balance transfers received a boost.

Pricing and fees (10%)

Cards with no foreign transaction fee and lower variable APRs received a boost compared to cards with higher fees and rates.

Annual credits and bonuses (5%)

Credit cards that come with credits and bonuses for spending in categories including groceries, dining, entertainment and gas received a boost.

Low credit threshold (5%)

No annual fee cards that are available to consumers with subpar credit received a boost compared to cards with higher minimum credit requirements.

What didn’t make the cut

If you’ve been comparing options for the best credit cards with no annual fee, you might be surprised to see a few omissions from our list. However, there are good reasons that the following cards didn’t crack our top 10.

• Discover it® Cash Back*The information for the Discover it® Cash Back has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. : Like Chase Freedom Flex℠*The information for the Chase Freedom Flex℠ has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , the Discover it® Cash Back*The information for the Discover it® Cash Back has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. earns 5% cash back on purchases at different places each quarter up to $1,500 spent each quarter when activated and 1% cash back on all other purchases. However, the Chase Freedom Flex is a more versatile everyday card with 3% cash back at drugstores, 3% cash back on dining and 5% cash back on travel booked through Chase — all of which beat out the standard 1% cash back on every purchase with the Discover it® Cash Back*The information for the Discover it® Cash Back has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. .
• Capital One Quicksilver Cash Rewards Credit Card*The information for the Capital One Quicksilver Cash Rewards Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. : The Capital One Quicksilver Cash Rewards Credit Card loses in a head-to-head battle with the Capital One VentureOne . All Venture cards come with the ability to transfer miles to Capital One’s travel partners, which can create higher value and take you further – literally.
• Citi Custom Cash® Card: While the Citi Custom Cash Card offers 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2025.
• Blue Cash Everyday® Card from American Express*The information for the Blue Cash Everyday® Card from American Express has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. : The Blue Cash Everyday Card’s (terms apply, see rates and fees) welcome bonus is significantly harder to reach than the Capital One VentureOne : It requires $2,000 of spending, compared to just $500 for the VentureOne. Plus, this card isn’t a good option if you’re planning to travel outside the U.S. due to a foreign transaction fee of 2.70.

All information about Blue Cash Everyday® Card from American Express has been collected independently by CNN Underscored.

Frequently asked questions (FAQs)

To view rates and fees for Blue Cash Everyday® Card from American Express*The information for the Blue Cash Everyday® Card from American Express has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. please visit this page.

All information about Blue Cash Everyday® Card from American Express has been collected independently by CNN Underscored.

To view rates and fees for Capital One VentureOne Rewards Credit Card*The information for the Capital One VentureOne Rewards Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. please visit this page.

To view rates and fees for Capital One SavorOne Cash Rewards Credit Card*The information for the Capital One SavorOne Cash Rewards Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. please visit this page..

To view rates and fees for Blue Cash Preferred® Card from American Express*The information for the Blue Cash Preferred® Card from American Express has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. please visit this page.

All information about Blue Cash Preferred® Card from American Express has been collected independently by CNN Underscored.

*The information for the following card(s) has been collected independently by CNN Underscored Money: Capital One VentureOne Rewards Credit Card*The information for the Capital One VentureOne Rewards Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , Chase Freedom Flex℠*The information for the Chase Freedom Flex℠ has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , Capital One SavorOne Cash Rewards Credit Card*The information for the Capital One SavorOne Cash Rewards Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , U.S. Bank Altitude® Go Visa Signature® Card*The information for the U.S. Bank Altitude® Go Visa Signature® Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , U.S. Bank Altitude® Go Visa Signature® Card*The information for the U.S. Bank Altitude® Go Visa Signature® Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , Discover it® Student Cash Back*The information for the Discover it® Student Cash Back has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , Discover it® Cash Back*The information for the Discover it® Cash Back has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , Capital One Quicksilver Cash Rewards Credit Card*The information for the Capital One Quicksilver Cash Rewards Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. ,IHG One Rewards Traveler Credit Card*The information for the IHG One Rewards Traveler Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , Delta SkyMiles® Gold American Express Card*The information for the Delta SkyMiles® Gold American Express Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , Delta SkyMiles® Blue American Express Card*The information for the Delta SkyMiles® Blue American Express Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , Blue Cash Preferred® Card from American Express*The information for the Blue Cash Preferred® Card from American Express has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. , and Blue Cash Everyday® Card from American Express*The information for the Blue Cash Everyday® Card from American Express has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer. . The card details on this page have not been reviewed or provided by the card issuer.