Are no annual fee credit cards worth it?

As you can see, you don’t need to pay an annual fee to earn valuable rewards with a credit card. Whether they earn cash back or points that can be redeemed toward travel, the options listed above represent great opportunities to rack up rewards. There are cases when a credit card’s benefits can justify paying an annual fee, but it’s good to know that there are several solid no-annual-fee options as well.

What types of no annual fee credit cards are there?

Credit cards with no annual fees are more common than you might imagine. The most common type of card to not charge an annual fee is cash back credit cards. However, it’s harder to find travel credit cards without annual fees. That’s because these cards often come with premium perks that aren’t cheap. You can expect to pay up to the hundreds of dollars for travel credit cards at the top end of the scale. Whatever the type of credit card you’re looking for whether it be travel, student, small business or cash back, it’s always worth checking out to see if you can find a no-annual-fee version. Bear in mind, though that the best sign-up bonuses, benefits and perks often come with cards with a fee.

Who should get a no-annual-fee credit card?

Use your points to book luxury hotels such as The Liming Bequia in St. Vincent & Grenadines. (Photo courtesy of Small Luxury Hotels of the World) The cards on this list represent the best of the best when it comes to cards with no annual fee, but you’ll find better bonuses, perks and bonus categories on cards with an annual fee. If you’re looking to take multiple free trips a year, fly in premium cabins or stay in luxury hotels, you’ll almost definitely need cards with an annual fee to make that happen. Annual fees might seem counterintuitive if the goal is to get free travel, but if you look at the numbers, you often end up getting far more in return than what you spend in fees. First-time credit card owners If you’re new to the credit card game, then you might consider starting out with a no-annual-fee card to make sure it’s right for you. It’s a full-time gig – you’ll be occupied enough with keeping on top of monthly payments and tracking your spending to make sure you reach earning thresholds to worry about making sure you’ve got the cash to pay for its annual fee. It’s also a great way to start building up credit, for free – so long as you hit your monthly payments, that is. You can also keep them open forever, which increases your average age of accounts. Once you’ve got that down, then maybe upgrade to an annual fee credit card. Related: Guide to credit card annual fees Those looking to rebuild credit Don’t fret if you happen to have bad credit. There are no-annual-fee credit cards available to you and some even have built in tools to help you rebuild that credit to where it once was. Related: The best starter cards for building your credit Those who wish to consolidate balances If you’re struggling to manage several credit card balances, some no annual fee credit cards such as the Citi® Diamond Preferred® Card offer of 0% Intro APR for 21 months on balance transfers from date of first transfer and 0% Intro APR for 12 months on purchases from date of account opening, then a variable APR of 18.24% – 28.99%, based on your creditworthiness. Balance transfers must be completed within the first four months of account opening (see rates and fees ). Related: The best balance transfer credit cards Diversification of credit card portfolio No annual-fee-credit cards also make great complimentary cards to ones with higher annual fees. For example, the Chase Freedom Unlimited makes an excellent pairing with the Chase Sapphire Preferred Card .

What is an annual fee?

Many credit card issuers charge their customers an annual fee to increase revenue and offset administrative costs like customer service, technology services and the simple act of producing your credit card. These fees will usually appear on your first statement each year in the month that you opened your card. So if you opened a credit card in November, every November you can expect to be charged the annual fee. Typically speaking, higher annual fees accompany cards with premium benefits like high rewards rates, annual statement credits, lounge access , and other travel perks. Of course, that’s not to say that cards with no annual fee aren’t valuable. But if you have a card with no annual fee, you shouldn’t expect to see a long list of perks accompanying the card.

11 best no annual fee credit cards of December 2023

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Editor

Updated

Dec 13, 2023

The best no-annual-fee credit cards offer cash back, travel credits and other perks — and can be a great way to maximize your rewards while minimizing costs. And since there’s no shortage of quality cards to choose from, you might even find that having more than one cash-back card will offer you even more opportunities to earn rewards that you can redeem as you see fit.

TPG editors have curated this list of top picks that feature cards with generous rates of cash back across multiple categories like dining, entertainment, office supplies and more. Here are the best no-annual-fee credit cards from our partners.

Why Trust Us?

At The Points Guy, our goal is to help you maximize your travel experiences while minimizing spending. Our travel and credit cards experts share their own experiences and give honest analyses to help you make decisions that benefit you the most. While we do receive compensation through our credit card application links, ads, and clearly indicated sponsored content, our editorial content, points valuations and card analysis are entirely our own.

More details on our best no annual fee credit cards
The best no-annual-fee credit cards
When to downgrade to a no-annual-fee credit card
Comparing top rewards cards and their no-annual-fee counterparts
How to pair no annual fee and annual fee cards

More details on our best no annual fee credit cards

Comparing top rewards cards and their no-annual-fee counterparts

The best no-annual-fee credit cards

How to pair no annual fee and annual fee cards

When to downgrade to a no-annual-fee credit card

Comparing the best no-annual-fee credit cards

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Credit card	Best for	Intro offer	Earning Rate	Annual Fee
Capital One VentureOne Rewards Credit Card Capital One VentureOne Rewards Credit Card See details See rates & fees Apply now	Best for airline transfer partners	20,000 miles	1.25 - 5X miles 1.25 - 5X miles details	$0
Capital One SavorOne Cash Rewards Credit Card Capital One SavorOne Cash Rewards Credit Card See details See rates & fees Apply now	Best for dining and entertainment	$200	1 - 8% cash-back 1 - 8% cash-back details	$0
Bank of America® Travel Rewards credit card Bank of America® Travel Rewards credit card See details Apply now	Best for existing Bank of America customers	25,000 points	1.5X points 1.5X points details	$0
Capital One Quicksilver Cash Rewards Credit Card Capital One Quicksilver Cash Rewards Credit Card See details See rates & fees Apply now	Best for beginner cash back	$200	1.5 - 5% cash-back 1.5 - 5% cash-back details	$0
Wells Fargo Autograph℠ Card Wells Fargo Autograph℠ Card See details Apply now	Best for variety of bonus categories	30,000 bonus points	1 - 3X points 1 - 3X points details	$0
Chase Freedom Flex℠ Chase Freedom Flex℠ See details Apply now	Best for rotating bonus categories	$200	1 - 5% cash-back 1 - 5% cash-back details	$0
Bank of America® Customized Cash Rewards credit card Bank of America® Customized Cash Rewards credit card See details Apply now	Best for customizable rewards structure	$200	1 - 3% cash-back 1 - 3% cash-back details	$0
Ink Business Cash® Credit Card Ink Business Cash® Credit Card See details Apply now	Best for office supplies	$900	1 - 5% cash-back 1 - 5% cash-back details	$0
Ink Business Unlimited® Credit Card Ink Business Unlimited® Credit Card See details Apply now	Best for freelancers	$900	1.5% cash-back 1.5% cash-back details	$0

Frequently asked questions

As you can see, you don’t need to pay an annual fee to earn valuable rewards with a credit card. Whether they earn cash back or points that can be redeemed toward travel, the options listed above represent great opportunities to rack up rewards. There are cases when a credit card’s benefits can justify paying an annual fee, but it’s good to know that there are several solid no-annual-fee options as well.
Credit cards with no annual fees are more common than you might imagine. The most common type of card to not charge an annual fee is cash back credit cards.

However, it’s harder to find travel credit cards without annual fees. That’s because these cards often come with premium perks that aren’t cheap. You can expect to pay up to the hundreds of dollars for travel credit cards at the top end of the scale.

Whatever the type of credit card you’re looking for whether it be travel, student, small business or cash back, it’s always worth checking out to see if you can find a no-annual-fee version. Bear in mind, though that the best sign-up bonuses, benefits and perks often come with cards with a fee.
Use your points to book luxury hotels such as The Liming Bequia in St. Vincent & Grenadines. (Photo courtesy of Small Luxury Hotels of the World)

The cards on this list represent the best of the best when it comes to cards with no annual fee, but you’ll find better bonuses, perks and bonus categories on cards with an annual fee. If you’re looking to take multiple free trips a year, fly in premium cabins or stay in luxury hotels, you’ll almost definitely need cards with an annual fee to make that happen. Annual fees might seem counterintuitive if the goal is to get free travel, but if you look at the numbers, you often end up getting far more in return than what you spend in fees.

First-time credit card owners

If you’re new to the credit card game, then you might consider starting out with a no-annual-fee card to make sure it’s right for you. It’s a full-time gig – you’ll be occupied enough with keeping on top of monthly payments and tracking your spending to make sure you reach earning thresholds to worry about making sure you’ve got the cash to pay for its annual fee.

It’s also a great way to start building up credit, for free – so long as you hit your monthly payments, that is. You can also keep them open forever, which increases your average age of accounts. Once you’ve got that down, then maybe upgrade to an annual fee credit card.

Related: Guide to credit card annual fees

Those looking to rebuild credit

Don’t fret if you happen to have bad credit. There are no-annual-fee credit cards available to you and some even have built in tools to help you rebuild that credit to where it once was.

Related: The best starter cards for building your credit

Those who wish to consolidate balances

If you’re struggling to manage several credit card balances, some no annual fee credit cards such as the Citi® Diamond Preferred® Card offer of 0% Intro APR for 21 months on balance transfers from date of first transfer and 0% Intro APR for 12 months on purchases from date of account opening, then a variable APR of 18.24% – 28.99%, based on your creditworthiness. Balance transfers must be completed within the first four months of account opening (see rates and fees).

Related: The best balance transfer credit cards

Diversification of credit card portfolio

No annual-fee-credit cards also make great complimentary cards to ones with higher annual fees. For example, the Chase Freedom Unlimited makes an excellent pairing with the Chase Sapphire Preferred Card.
Many credit card issuers charge their customers an annual fee to increase revenue and offset administrative costs like customer service, technology services and the simple act of producing your credit card. These fees will usually appear on your first statement each year in the month that you opened your card. So if you opened a credit card in November, every November you can expect to be charged the annual fee.

Typically speaking, higher annual fees accompany cards with premium benefits like high rewards rates, annual statement credits, lounge access, and other travel perks. Of course, that’s not to say that cards with no annual fee aren’t valuable. But if you have a card with no annual fee, you shouldn’t expect to see a long list of perks accompanying the card.

More details on our best no annual fee credit cards

There’s no better way to maximize rewards earnings while minimizing costs than by using a credit card with no annual fee. It’s true that cards with no annual fee typically have fewer benefits and lower rewards rates when compared to many of the best credit cards out there, but there are still some no-annual-fee cards out there that are quite valuable.

Arguably the best cards with no annual fee are the Chase Freedom Unlimited and Chase Freedom Flex because of their flexibility. You’re earning rewards on every purchase, and the card is a great stand-alone cash-back card or complimentary card to an existing Chase Ultimate Rewards card. In this guide, I walk through some of my other favorite cards with no annual fee so you can decide if any are worth your while.

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The best no-annual-fee credit cards

Capital One VentureOne Rewards Credit Card: Best for airline transfer partners

Current bonus: Earn 20,000 bonus miles once you spend $500 within the first three months from account opening

Rewards rate: Earn 1.25 miles per dollar on every purchase and 5 miles per dollar on hotels and rental cars booked through Capital One Travel.

Intro and Regular APR: 0% intro on balance transfers for 15 months. Then 19.99% – 29.99% (Variable). There is a 3% for the first 15 months or at a promotional APR that Capital One may offer you at any other time. No fee for amounts transferred at the Transfer APR fee for balance transfers. (see rates and fees)

Why it’s the best no-annual-fee credit card for airline transfer partners: Beginner travelers who want to earn miles on every purchase without paying an annual fee (see rates and fees) should consider the VentureOne Rewards Card . While 1.25 miles per dollar on every purchase isn’t the industry standard for no-annual-fee, flat-rate cards, all Capital One miles-earning cards give you access to 15-plus airline and hotel transfer partners, boosting the potential value you get from your rewards. This card is a solid option for any beginner who is looking for a starter card before moving up to one of the best travel credit cards.

Capital One offers the Capital One Venture Rewards Credit Card, with 2 miles per dollar on every purchase. Although it comes with a $95 annual fee (see rates and fees), you’ll get a higher rewards rate and benefits such as a credit on your TSA PreCheck/Global Entry application fee (up to $100) in return. While the no annual fee VentureOne card (see rates and fees) has a lower earning rate, it does have the same transfer options as the more expensive Venture Rewards card so you aren’t losing anything on the redemption side by keeping your costs down.

Check out our full card review.

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Official application link: Capital One VentureOne.

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Capital One SavorOne Cash Rewards Credit Card: Best for dining and entertainment

Current bonus: Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening.

Rewards rate: Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other purchases.

Purchase APR: 0% intro on purchases for 15 months. Then 19.99% – 29.99% (Variable). (see rates and fees)

Balance transfers: 0% intro APR on purchases and balance transfer for 15 months; 19.99%-29.99% variable APR after that; balance transfer fee applies. 3% for the first 15 months or 4% at a promotional APR that Capital One may offer you at any other time. (see rates and fees)

Why it’s the best no-annual-fee credit card for dining and entertainment: The tradeoff for the SavorOne is that it has a slightly lower rewards rate than the Capital One Savor Cash Rewards Credit Card* in exchange for its no annual fee. But it still packs a punch. Dining and entertainment are defined broadly to include restaurants, takeout, concerts, sporting events, tourist attractions and much more.

Although there are plenty of cards that reward spending on dining, entertainment is a rare bonus category. To get 3% back on those purchases, plus at grocery stores, is an excellent return for a no-annual-fee card.

Check out our full card review.

*The information for the Capital One Savor card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

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Official application link: Capital One SavorOne.

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Chase Freedom Unlimited®: Best for flexible cash rewards

Current bonus: Use your card for all your purchases and at the end of your first year, Chase will automatically match all the cash back you earned. There is no limit to how much you can earn. Every dollar in cash back rewards you earn is a dollar Chase will match.

Rewards rate: Earn unlimited 1.5% cash back on purchases and an elevated rate on the following categories:

5% back on travel purchased through Chase Ultimate Rewards.
3% back on dining, including takeout and eligible delivery service.
3% back at drugstores.

Purchase APR: 0% Intro APR on Purchases for 15 months. Then 20.49% – 29.24% Variable.

Balance transfer: 0% Intro APR on Balance Transfers for 15 months. Then 20.49% – 29.24% Variable. Balance transfers made within the first 60 days are subjected to a fee of 3% of the amount of each transfer or $5, whichever is greater. Balance transfer taking place after the first 60 days are subjected to a fee of 5% of the amount of each transfer or $5, whichever is greater.

Why it’s the best no-annual-fee credit card for flexibility: The Chase Freedom Unlimited is a great card for non-bonus spending. You’ll earn 1.5% no matter where you swipe, and no annual fee means it’s perfect for pairing. In fact, it makes up one very important third of the Chase Trifecta, a powerful combination of cards that offers strong earning rates, redemption options and travel perks.

This may not be the most exciting card at face value, but if you also hold a premium Ultimate Rewards-earning card — such as the Chase Sapphire Preferred Card, the Ink Business Preferred Credit Card or the Chase Sapphire Reserve — you can convert the cash back you earn on the Freedom Unlimited card to points and transfer them to Chase’s airline and hotel partners or redeem directly through the Chase travel portal at a rate of 1.25 cents each (Sapphire Preferred and Ink Preferred) or 1.5 cents (Sapphire Reserve).

The Chase Freedom Unlimited tops this list because of its flexibility as one of the most versatile cash-back credit cards. Plus, the increased bonus categories are stellar for travel, dining and drugstores makes it a solid no-annual-fee card incredibly lucrative — and dare I say it, exciting.

You can use it as a stand-alone card for all spending if you’re a beginner, and then add other Chase travel cards once you’re ready to start digging into the Ultimate Rewards program. This card charges a 3% foreign transaction fee, so it won’t be your best option for spending while abroad.

Check out our full card review.

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Official application link: Chase Freedom Unlimited.

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Bank of America® Travel Rewards credit card: Best for existing Bank of America customers

Current bonus: Earn 25,000 points after you spend $1,000 on purchases in the first 90 days of account opening.

Rewards rate: Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don’t expire as long as your account remains open.

Intro and Regular APR: 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any BTs made in the first 60 days. A 3% fee applies. 18.24% – 28.24% Variable APR on purchases and balance transfers.

Why it’s the best no-annual-fee credit card for existing Bank of America customers: This is another card that is pretty straightforward. It earns 1.5 points per dollar on all purchases with no limit. It’s not the only card on this list to offer a similar rewards structure, but it does have a unique advantage if you are an existing Bank of America customer.

If you qualify for the Bank of America Preferred Rewards® program, you can increase that earning rate by anywhere from 25% to 75% (depending on how much you have in total assets across accounts with Bank of America). That means you could be earning up to 2.62 points per dollar on every purchase — which is amazing for a no-annual-fee card. You can redeem points to cover travel expenses such as flights, hotels, rental cars and baggage fees, similar to how the Capital One Venture cards work.

Check out our full card review.

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Official application link: Bank of America Travel Rewards.

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Capital One Quicksilver Cash Rewards Credit Card: Best for cash back beginners

Current bonus: Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.

Rewards rate: Earn an unlimited 1.5% cash back on every purchase.

Purchase APR: 0% intro on purchases for 15 months. Then 19.99% – 29.99% (Variable). (see rates and fees)

Balance transfer: 0% intro on balance transfers for 15 months. Then 19.99% – 29.99% (Variable). Balance transfers have a Balance transfer fee applies fee on the amount transferred. (see rates and fees)

Why it’s the best no-annual-fee credit card for everyday spending: If you’re looking for a straightforward cash-back card as your first rewards credit card, the Quicksilver is a solid choice. You’ll earn 1.5% cash back on every purchase, no matter what it is. You can definitely find cards that offer higher cash back rates, but they’ll come with an annual fee, bonus categories to juggle or both. The Quicksilver may not be the flashiest card on this list, but it’s a steady, simple way to earn cash-back rewards on every purchase, no matter what. It’s one of the best cash-back credit cards out there.

Check out our full card review.

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Official application link: Capital One Quicksilver.

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Bank of America® Customized Cash Rewards credit card: Best for customizable rewards structure

Current bonus: $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.

Rewards rate: Earn 3% on the bonus category of your choice; 2% at grocery stores and wholesale clubs (with a $2,500 cap in combined bonus category spending each quarter; then unlimited 1% cash back on all other purchases.

Intro and Regular APR: 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any BTs made in the first 60 days. A 3% fee applies. Then 18.24% – 28.24% Variable APR on purchases and balance transfers.

Why it’s the best no-annual-fee credit card for customizable rewards structure: If you’re looking for a flexible rewards structure, it’s hard to beat the Bank of America Customized Cash Rewards card. You’ll choose which category earns 3% cash back each month from a list that includes gas and EV charging stations, online shopping (including cable, streaming, internet, and phone services), dining, travel, drug stores and home improvements/furnishings. Also earn 2% cash back at grocery stores and wholesale clubs. You’ll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%.

As with other Bank of America cards, you can take advantage of the Bank of America Preferred Rewards® program to maximize your earnings. If you’re a Platinum Honors member, you’ll earn 5.25% on the category of your choosing and 3.5% at grocery stores and wholesale clubs. This rewards structure is impressive on its own for a no-annual-fee card, but Preferred Rewards members will be hard-pressed to find a more rewarding cash-back card — especially with no annual fee.

Check out our full card review.

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Official application link: Bank of America® Customized Cash Rewards credit card.

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Hilton Honors American Express Card: Best for hotel points

Current welcome offer: Earn 100,000 Hilton Honors Bonus Points after you spend $2,000 in purchases on the Card in the first 6 months of Card Membership.

Rewards rate: Earn 7 points per dollar on eligible Hilton purchases; 5 points per dollar at U.S. restaurants, U.S. supermarkets and U.S. gas stations; and 3 points per dollar on all other eligible purchases.

Why it’s the best-no-annual fee credit card for hotel points If you’re looking for a low-cost card to maximize your Hilton hotel stays, the Hilton Honors Amex is a solid option. It’s not often you find a no-annual-fee card (see rates and fees) that offers such a high welcome offer and the ability to earn substantial points on bonus spending categories.

In addition to raking in Hilton Honors points, this card gives cardholders automatic Hilton Honors Silver status, which includes a 20% points bonus, no resort fees on award stays, standard in-room and lobby Wi-Fi, late checkout, fifth standard-award night free and two bottles of water. However, you can spend $20,000 on the card in a calendar year and earn an upgrade to Gold through the end of the next calendar year. This card also has no foreign transaction fees (see rates and fees).

If you typically spend a significant amount at Hilton properties throughout the year, Hilton and Amex offer cobranded cards that come with better earning rates and perks to help upgrade your travel experiences. However, this is a good starting point for beginners who are just getting into the Hilton Honors program.

Check out our full card review.

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Official application link: Hilton Honors Amex.

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Chase Freedom Flex℠: Best for rotating bonus categories

Current bonus: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.

Rewards rate: Earn 5% on up to $1,500 spent on rotating categories each quarter (activation required). Additionally, you’ll earn the following:

5% back on travel purchased through Chase Ultimate Rewards.
3% back on dining.
3% back at drugstores.

Purchase APR: 0% Intro APR on Purchases for 15 months . Then 20.49% – 29.24% Variable.

Balance transfer APR: 0% Intro APR on Balance Transfers for 15 months. Then 20.49% – 29.24% Variable. There is a fee associated with balance transfers. Either $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days. Rate changes to either $5 or 5% of the amount of each transfer, whichever is greater for balance transfers following the first 60 days of account opening.

Why it’s the best no-annual-fee credit card for rotating bonus categories: The Freedom Flex card has rotating quarterly bonus categories that reward you with 5% cash back, helping you earn in a wide variety of categories each year. Activation is required before you can start earning your 5 points per dollar, but it takes less than a minute to activate.

Like the Chase Freedom Unlimited, you can pair the Chase Freedom Flex with Chase Ultimate Rewards credit cards, so that you’re effectively earning 5 points per dollar on eligible purchases. Given how valuable Chase Ultimate Rewards points are, this card can be a great option.

With this versatility, it should come as no surprise that we rank the Chase Freedom Flex as one of our picks for the best rewards credit cards. Just keep in mind that this card charges a 3% foreign transaction fee that makes it unappealing to use when abroad.

Check out our full card review.

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Official application link: Chase Freedom Flex.

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Hotels.com® Rewards Visa® Credit Card: Best for hotels across multiple brands

The information for the Hotels.com Rewards Visa has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Current bonus: New cardholders will earn three reward nights worth $375 total (max $125 per night)* with qualifying purchases. Earn two rewards nights worth $250 total (max $125 per night)*, when you spend $1,000 on purchases in the first three months. Plus, earn another rewards night worth $125 when you spend $4,000 in total purchases within the first six months. *Excludes taxes and fees.

Rewards rate: One eligible paid hotel night gets you one stamp. Or, by spending $500 on the Hotels.com credit card, you can also earn one stamp. 10 stamps equal one reward hotel night.

Intro and Regular APR: 17.99% — 25.99% variable APR.

Why it’s the best no-annual-fee credit card for hotels across multiple brands: If you tend to stay at hotels from multiple hotel chains (or at boutique hotels that aren’t part of a major loyalty program), you’ll appreciate the Hotels.com credit card’s fresh take on earning rewards. You can earn one stamp for one paid night or by spending $500 or more on your card, and 10 stamps equal one reward hotel night. You can see how the reward nights stack up quickly just from hotel spend. Plus, enjoy other benefits like a suite of travel protections and no foreign currency conversion fees.

Check out our full card review.

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Citi Rewards+® Card: Best for small purchases

Current bonus: Earn 20,000 bonus points after you spend $1,500 in purchases with your card within three months of account opening. Plus, for a limited time, earn 5 ThankYou® Points per $1 spent on hotel, car rentals and attractions booked (excluding air travel) on the Citi Travel(SM) portal through June 30, 2024.

Rewards rate: Earn 2 ThankYou points per dollar on the first $6,000 spent at supermarkets and gas stations each year (then 1 point per dollar); points are rounded up to the nearest 10 for every purchase.

Purchase APR: 0% intro for 15 months on Purchases. Then 18.74% – 28.74% (Variable) (see rates and fees)

Balance transfer: 0% intro for 15 months on Balance Transfers. Then 18.74% – 28.74% (Variable). There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.

Why it’s the best no-annual-fee credit card for small purchases: The Rewards+ Card stands out for its unique earning scheme. In addition to earning 2 ThankYou points per dollar on supermarket and gas station purchases (up to $6,000, then 1 ThankYou point per dollar on everything else), points earnings on all purchases are rounded up to the nearest 10 points. So if you buy a $1.99 pack of gum, you’ll earn 10 points. This round-up feature also applies to your 2 points per dollar purchases.

Buying $31 worth of groceries at a supermarket will earn 70 points total (31 x 2 = 62, rounded up to 70). It’s a great card for maximizing smaller, everyday purchases that otherwise wouldn’t earn much. It is important to note that the points you earn with this card can only be transferred to JetBlue or redeemed toward travel, gift cards or statement credits at a rate of 1 cent per point. However, if you also have the Citi Prestige® Card or Citi Premier® Card, you can move points from the Rewards+ to one of those accounts in order to transfer them to the full selection of Citi airline partners, including Etihad Guest and Singapore KrisFlyer.

Check out our full card review.

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Official application link: Citi Rewards+.

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When to downgrade to a no-annual-fee credit card

Many top-rated travel cards with an annual fee offer strong sign-up bonuses that make them a no-brainer for the first year. However, the cards aren’t always useful long term. Maybe your spending habits change, you’ve added new cards that fit your lifestyle better, or you don’t travel as much these days to justify the higher-fee card.

Rather than cancel the card and potentially damage your credit score, it’s better to keep your account open without racking up too many annual fees. An easy way is to downgrade to a no-annual-fee card.

Let’s say you opened the Chase Sapphire Reserve — with its $550 annual fee — because of the bonus and travel perks. For a couple of years, you’re traveling frequently and therefore using the card enough to offset the out-of-pocket fee. However, you eventually start to limit your travel to just once a year or so. The annual fee for Reserve may no longer be worth it since you aren’t using your rewards or taking advantage of the card’s other benefits. Simply downgrade to a Freedom Unlimited, without an annual fee, and your problem is solved.

Be aware that upgrading or downgrading might make it harder for you to earn the bonus on that card in the future, so you’ll have to factor that into your plans. This is especially true with American Express credit cards because of the issuer’s strict welcome offer restrictions.

Comparing top rewards cards and their no-annual-fee counterparts

Some issuers offer similar card options, one with an annual fee and one without. You might ask yourself why you would ever apply for the card with an annual fee if you can get a similar one with no fee. Depending on your spending habits, the annual fee may actually be worth the higher rewards.

Let’s look at Capital One’s credit card lineup — specifically the Savor* and Venture credit cards. Both come in a no-annual-fee version as well, in exchange for a lower rewards rate. With the Savor*, that extra 1% back you earn will out-earn the SavorOne (see rates and fees) even with the annual fee difference when you’re spending more than $9,500 on dining and entertainment each year. That’s just under $800 a month on combined dining and entertainment spending.

Card:	Rewards structure:	Yearly value after annual fee:
Savor*	4% x $9,500	$285
SavorOne	3% x $9,500	$285

For the Venture cards, you’ll need to spend at least $12,667 each year on the card in order to out-earn the no annual fee VentureOne (see rates and fees). Since the Venture earns 2 miles per dollar across all purchases, that means you only have to spend $1,056 per month on the card to make the Venture worth it.

Card:	Rewards structure:	Yearly value after annual fee (based on TPG’s valuations):
Venture	2 miles x $12,667	$373.70
VentureOne	1.25 miles x $12,667	$292.92

The more you spend on your credit card each month, the more likely it is that the annual fee version of the card is a better investment long term. However, individuals who won’t be spending that much on a credit card each month can still benefit from the no-annual-fee version.

How to pair no annual fee and annual fee cards

Starting out with a no annual fee card is always a good idea. It helps you to learn how to manage your finances and is the first step to being a pro at the points and miles game. Once you’ve got that down, it’s worth considering pairing your no annual fee credit card with one that charges an annual fee to bolster your earning and reward potential.

Let’s look at an example. If you already have the Chase Unlimited Freedom card, you’ll already be earning a flat 1.5% cash back on all purchases, 5% cash back on travel, 3% on dining as well as 3% on drugstores. So, it would be worth your while to use this card on purchases which fit into those elevated categories, then switch to a travel rewards card like the Chase Sapphire Reserve for spending on other every day purchases, like gas and other spends.

This means you’ll continue to earn great cash back, while benefiting at the same time from great travel rewards like travel credits. That said, you don’t have to pair it with a travel rewards card, there are many others you could choose from that would be more inline with your lifestyle if travel isn’t something you do often.

*The information for the Capital One Savor Cash Rewards Credit Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Featured image by skaman306 via GettyImages

For rates and fees of the Hilton Amex card, please click here.

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