People have all kinds of different strategies when it comes to picking credit cards. While I think there is a lot of value in getting a card with an annual fee, I know many people are simply opposed to paying one. The good news is that it is quite easy to maximize your return on spending with a no annual fee card. The bad news is that you generally will not get all that many valuable perks or travel and rental car protection on these types of cards.
That being said, there are some awesome no annual fee credit cards. In this post I want to walk through what I consider to be the most rewarding no annual fee personal credit cards, and share how I would approach picking one or more of them.
Below are my favorite no annual fee personal credit cards. Just because you are not paying an annual fee does not mean you cannot get an awesome credit card. Let me share the cards I find most compelling, and then I will talk about how I would go about deciding which to apply for.
Compare no annual fee credit cards
Chase Freedom Unlimited®
Earn a $200 Bonus
- Earn 3% Cash Back on Dining
- Earn 3% Cash Back at Drugstores
- Earn 1.5% Cash Back On All Other Purchases
Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases
Learn more from these OMAAT posts:
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
Citi Double Cash® Card
Earn $200 after qualifying purchases
- Earn 1% cash back when you make a purchase, earn 1% cash back when you pay for that purchase
1% cash back when you make a purchase
1% cash back when you pay for that purchase
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- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.49% - 28.74%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Citi Strata℠ Card
Earn 20,000 bonus Points after qualifying purchases
- Earn 2x Points at Restaurants
- Intro APR On Purchases & Balance Transfers
- No Annual Fee
Earn 3 ThankYou® Points for each $1 spent in an eligible Self-Select Category of your choice (Fitness Clubs, Select Streaming Services, Live Entertainment, Cosmetic Stores/Barber Shops/Hair Salons, or Pet Supply Stores). Choose your eligible Self-Select Category on Citi Online or by calling customer service. The default Self-Select Category is Select Streaming Services.
Earn 5 ThankYou® Points for each $1 spent on Hotels, Car Rentals and Attractions booked on Citi Travel® via cititravel.com; earn 3 ThankYou Points for each $1 spent at Supermarkets, on Select Transit purchases, and at Gas & EV Charging Stations.
Earn 2 ThankYou® Points for each $1 spent at Restaurants; earn 1 ThankYou® Point for each $1 spent on All Other Purchases.
- Earn 20,000 bonus Points after spending $1,000 in the first 3 months of account opening.
- 0% Intro APR on balance transfers and purchases for 15 months; after that, the variable APR will be 18.74% - 28.74%, based on your creditworthiness. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
- Earn 3 ThankYou® Points for each $1 spent in an eligible Self-Select Category of your choice (Fitness Clubs, Select Streaming Services, Live Entertainment, Cosmetic Stores/Barber Shops/Hair Salons, or Pet Supply Stores). Choose your eligible Self-Select Category on Citi Online or by calling customer service. The default Self-Select Category is Select Streaming Services.
- Earn 5 ThankYou® Points for each $1 spent on Hotels, Car Rentals and Attractions booked on Citi Travel® via cititravel.com; earn 3 ThankYou Points for each $1 spent at Supermarkets, on Select Transit purchases, and at Gas & EV Charging Stations.
- Earn 2 ThankYou® Points for each $1 spent at Restaurants; earn 1 ThankYou® Point for each $1 spent on All Other Purchases.
- No Annual Fee
Earn 20,000 bonus Points after spending $1,000 in the first 3 months of account opening.
Bilt Blue Card
$100 of Bilt Cash offer
- Earn up to 1.25X points on rent and mortgage payments
- No Annual Fee
- No Foreign Transaction Fees
Earn up to 1.25 points on rent and mortgage payments with no transaction fee, and 1 point on everyday spend.
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- Earn up to 1.25X points on rent and mortgage payments with no transaction fee.
- 1X points on everyday spend.
- Welcome offer: $100 of Bilt Cash when you apply and get approved. At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.
- Earn additional points through Bilt Neighborhood Benefits™ when you use your card at Bilt's network of 50,000+ merchant partners.
- Other benefits: No foreign transaction fees, Cellular Wireless Telephone Protection, Purchase Assurance, MasterRental Coverage (See Guide to Benefits)
Welcome offer: $100 of Bilt Cash when you apply and get approved. At the end of each calendar year, any Bilt Cash balance over $100 will expire.
5 best no annual fee credit cards
Below are my favorite no annual fee credit cards. Just because you are not paying an annual fee does not mean you cannot get an awesome credit card. Let me share the cards I find most compelling, and then I will talk about how I would go about deciding which to apply for.
1. Citi Double Cash® Card
The Citi Double Cash Card is probably my favorite no annual fee credit card. I have had it for several years now, and it is one of the cards I spend the most on, especially for everyday purchases that do not fall into a bonus category. Recent changes to the Citi ThankYou ecosystem have made it even more valuable. For example, with American AAdvantage now a ThankYou transfer partner if you carry an eligible Citi card, this could be the single most rewarding card for earning AAdvantage miles. That is a pretty big deal. You do not have to decide between cash back and travel rewards upfront. Earn your points and decide later.
Welcome bonus
The card currently offers a welcome bonus of 20,000 ThankYou points after spending $1,500 within the first six months. Those 20,000 points can be redeemed for $200 cash back. But if you have this card alongside one that earns premium ThankYou points, those points become transferable to airline and hotel partners. I personally value ThankYou points at 1.7 cents each, which puts the bonus closer to $340 in value.
The welcome bonus is not available if you have received a bonus on this card in the past 48 months. Beyond that, eligibility is unrelated to any other Citi card you might have.
Rewards structure
- 1x ThankYou points when you make a purchase, plus 1x ThankYou points when you pay for that purchase, giving you up to 2x ThankYou points per dollar spent after paying your bill
- No caps or categories to track
- 3% foreign transaction fee, so this is best reserved for domestic purchases
This is among the best returns you will find on a no annual fee card. Very few cards beat a flat 2% on everything without conditions.
How to redeem rewards
After you earn your 2x ThankYou points, you have two main options for putting them to use.
- Cash back at one cent per point, with no minimum redemption amount; you can choose a statement credit or a direct deposit to any bank account
- Transfer points to 19 airline and hotel partners, including American AAdvantage, Air France-KLM Flying Blue, Avianca LifeMiles, Emirates Skywards, Qatar Airways Privilege Club, Singapore Airlines KrisFlyer, and more; to unlock the full transfer ratios and partner lineup, you will want one of Citi’s premium cards alongside the Double Cash
One interesting note: the Double Cash lets you redeem points for cash at one cent per point, which is actually a better rate than some of Citi’s premium cards offer. Since you can pool your points, you could redeem all your ThankYou points through the Double Cash at that higher rate.
Best combo: Citi Double Cash + Citi Strata Premier® Card
If you are looking for the best value with low fees, it is tough to beat pairing the Citi Double Cash with the Citi Strata Premier Card. The Strata Premier offers 3x points on dining, gas, EV charging, groceries, airfare, and hotels. The Double Cash covers everything else. You also unlock all ThankYou point transfer partners at the best ratios, including American AAdvantage.
Link: Learn more about the Citi Double Cash® Card
2. Bilt Blue Card
Bilt is the platform most known for offering rewards for housing payments, and the Bilt Blue Card is the no annual fee option in their card lineup. While I generally think the higher annual fee Bilt cards offer more upside, the Bilt Blue Card has a specific value proposition worth understanding, particularly if you have a significant housing payment.
The Bilt Blue Card is the weakest card in the Bilt portfolio in terms of overall potential upside, but it is still worth considering for anyone who pays rent or a mortgage and wants a no annual fee option for earning transferable points on those payments.
Welcome bonus
- $100 in Bilt Cash upon approval (Up to $100 of Bilt Cash earned rolls over to the next year.)
Rewards structure
- 1x Bilt Rewards points on eligible purchases
- Option to earn 4% back on spending in the form of Bilt Cash, in addition to points earned
- Earn up to 1.25X points on rent and mortgage payments with no transaction fee.
Bilt Rewards points are a genuinely useful transferable currency, with over 20 airline and hotel partners including Alaska Atmos Rewards, Air France-KLM Flying Blue, World of Hyatt, and Emirates Skywards.
How Bilt Cash works for housing rewards
The argument for this card comes down to utilizing Bilt Cash. On the most fundamental level, you can redeem $30 in Bilt Cash to earn 1,000 points on housing payments, whether that is rent, a mortgage, or an HOA payment. So if you spend $10,000 on the card, you could earn $400 in Bilt Cash, which is enough to earn around 13,333 points on housing payments.
In the right increments, you can get a 3:4 ratio between rewards on everyday spending and rewards on housing payments. Put another way, if you absolutely maximize things, you could in the end be earning up to 2.33x points per dollar spent, between the 1x points on purchases plus the 1x points on housing payments. For someone who specifically optimizes purchases that way, that is a pretty compelling return on spending for a no annual fee product.
Link: Apply for a Bilt credit card (Rates & Fees)
3. Chase Freedom Unlimited®
The Chase Freedom Unlimited is one of the all-around best cards for everyday spending. It is a card I have, and it is one I think is worth holding onto. The catch is that there is a learning curve to using this card. For some people this will just be a good card, while for other people this will be an amazing card, depending on what else is in their wallet.
If you collect Chase Ultimate Rewards points and use any personal Chase card other than the Chase Freedom Unlimited for your everyday spending, you are not doing it right. The card has no annual fee and offers a minimum of 1.5x points per dollar spent. If you have the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®, you absolutely should have the Freedom Unlimited so you are maximizing your return on everyday, non-bonused Chase spending.
Welcome bonus
The Chase Freedom Unlimited currently offers a welcome bonus of $200 cash back after spending $500 within the first three months. On the surface, points can be redeemed for one cent each, but you can potentially get a lot more value than that. These points can be converted into Ultimate Rewards points, and I value those at 1.7 cents each.
Eligibility for the Chase Freedom Unlimited is unrelated to eligibility for other Chase cards, so you could earn the bonus on this card and the Freedom Flex, for example.
Rewards structure
- 5x points on travel purchased through Chase Travel℠
- 3x points on dining, including takeout and delivery
- 3x points on drugstore purchases
- 1.5x points on all other purchases, with no caps
- 3% foreign transaction fees, so best used for domestic purchases
Personally I value Chase Ultimate Rewards points at 1.7 cents each, so to me the card offers the equivalent of a 2.55% return on everyday spending, which is really good for a no annual fee card.
How to maximize the Chase Freedom Unlimited
The key to maximizing this card is pairing it with either the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®. With one of those cards, your Freedom Unlimited points become transferable to airline and hotel partners, including World of Hyatt, Air France-KLM Flying Blue, Emirates Skywards, Singapore Airlines KrisFlyer, United MileagePlus, and more.
I cannot emphasize enough that having the Freedom Unlimited in conjunction with either the Sapphire Preferred or Sapphire Reserve is probably the best card combo you can have. That is because not only can you combine the benefits of the two cards, but this greatly increases the value you get from your Freedom Unlimited points.
Link: Learn more about the Chase Freedom Unlimited®
4. Chase Freedom Flex℠ Credit Card
The Chase Freedom Flex is Chase’s other valuable no annual fee personal card. It offers up to 5x points in rotating quarterly spending categories, and if you are involved in the Chase Ultimate Rewards ecosystem, this is a card you should seriously consider. I have both this card and the Freedom Unlimited, because they both help improve my credit score and earn me bonus rewards.
The Chase Freedom Flex is absolutely worth it if you have the Chase Sapphire Preferred or Chase Sapphire Reserve. The card offers an excellent welcome bonus, has no annual fee, and can earn you 5x points in rotating quarterly categories. If you want to maintain a great credit score, you will want to keep some cards for a long time. What better card to do that with than a no annual fee product that also earns you lots of rewards?
Welcome bonus
The Chase Freedom Flex is currently offering a welcome bonus of $200 cash back (20,000 points) after spending $500 within the first three months. You are eligible for this card even if you have the Freedom Unlimited. Chase’s typical application rules apply, including the 5/24 rule.
Rewards structure
- 5x points in rotating quarterly bonus categories on up to $1,500 in spending per quarter
- 5x points on travel purchased through Chase Travel
- 3x points on dining, takeout, and eligible delivery services
- 3x points on drugstores
- 1x points on all other purchases
Being able to earn 5x points in rotating quarterly categories is awesome, as is 3x points on dining and drugstores. This is not the card I would use for everyday spending, but the bonus categories are excellent.
Link: Learn more about the Chase Freedom Flex℠ Credit Card
5. Capital One VentureOne Rewards Credit Card
The Capital One VentureOne Rewards Credit Card rounds out the list. If you are absolutely committed to not paying an annual fee and want a one-size-fits-all travel rewards card with no foreign transaction fees, this should probably be it. It is rare to have a no annual fee card that earns more than one transferable mile per dollar spent and has no foreign transaction fees.
The Capital One VentureOne is a solid no annual fee card that offers a decent welcome bonus, no foreign transaction fees, and 1.25x transferable miles on all purchases. While that is a well-rounded card, I think the much better play for most people is to consider one of the premium Capital One Venture cards.
Welcome bonus
The Capital One VentureOne Card has a welcome bonus of 20,000 Capital One miles after spending $500 within the first three months. That is a reasonable bonus for a no annual fee card, though there are more rewarding bonuses available if you are willing to pay an annual fee. I value Capital One miles at 1.7 cents each, so to me those miles are worth around $340.
Rewards structure
- 1.25x Capital One miles on all purchases, with no caps
- No foreign transaction fees, which is rare for no annual fee cards
Capital One miles can be redeemed for one cent each toward the cost of a travel purchase, or transferred at a 1:1 ratio to over a dozen airline and hotel partners. Personally I value Capital One miles at 1.7 cents each, so by my math the card offers around a 2.125% return on spending.
Link: Learn more about the Capital One VentureOne Rewards Credit Card
Things to consider before applying for a no annual fee card
These cards are not mutually exclusive
Just like with premium cards, there is no rule against holding multiple no annual fee cards simultaneously. In fact, holding multiple no annual fee cards long-term can help your credit score by increasing your average age of accounts and your total available credit. The ideal situation is to do that with no annual fee cards since it will cost you the least.
The value of a card depends on your ecosystem
The value you get from the Chase Freedom cards varies significantly based on what other cards you have. Some people might only be earning rewards equivalent to 1.5% back for everyday spending with the Freedom Unlimited, while others will be earning rewards they value at 2.5%+, which is among the best rewards rates in the industry. Similarly, the Citi Double Cash is just a good cash back card on its own, but becomes a great card alongside a premium Citi product that unlocks full transfer partner access.
Foreign transaction fees matter
Most of the cards on this list charge foreign transaction fees of around 3%, which would wipe out your rewards on international purchases. If you travel internationally and want a no annual fee card to use abroad, that is the one to reach for.
Consider whether a low annual fee card is worth it instead
I think there is plenty of value in getting cards with annual fees. The step up from a no annual fee card to a card with a modest $95 annual fee can often unlock significantly better rewards structures, bigger welcome bonuses, and perks that more than offset the fee. If you spend a reasonable amount on your credit card, the math often works out in favor of paying the annual fee. It is worth at least considering before defaulting to no annual fee options.
Bottom line
While I think there is plenty of value in getting cards with annual fees, I know that lots of people like to avoid them, especially if they do not spend that much on cards. Fortunately, as you can see above, there are many great options to choose from no matter what you prioritize.
The Citi Double Cash is my favorite overall for everyday spending, thanks to its effective 2x return on all purchases and access to a great transferable points currency. The Chase Freedom Unlimited is the card to have if you are in the Chase ecosystem, and the Freedom Flex complements it nicely for rotating category bonuses. The Bilt Blue Card fills a niche for renters and homeowners who want to earn rewards on housing payments. And the Capital One VentureOne rounds things out for anyone who travels internationally and wants a no annual fee card with no foreign transaction fees.
There is no single right answer, and there is a strong case for holding more than one of these cards. The best no annual fee setup for most people is probably the Chase Freedom Unlimited plus one premium Chase card, which gives you both an excellent no annual fee earner and the ability to unlock the full value of your points.
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