Compare the Best No Fee Credit Cards
What if you didn’t have to commit to a hefty annual fee to earn exceptional rewards? Well, it’s becoming increasingly possible. Credit cards with no annual fee allow you to maximize your rewards earnings while minimizing your costs. While these cards indeed have fewer benefits or perks compared with other fee-based cards, they’re still a valuable addition to your wallet.
Find the Right No Annual Fee Credit Card for You
When considering the credit card that’s right for you, your first decision should focus on annual fees. No fee credit cards are a great option if you rarely use credit cards but still want to pay for purchases and build credit. No fee credit cards typically offer fewer points, cash back or miles per dollar compared with those that charge fees, so it will take you longer to earn substantial rewards.
Benefits of No Fee Credit Cards
Rewards
You don’t have to pay an annual fee to enjoy rewards on your credit card. Some cash back and travel rewards credit cards have no annual fee—so you can still enjoy several perks
Improved Credit Score
You can easily improve your credit score by signing up for a no fee credit card. By ensuring you keep your monthly balance low, paying it off can be easier. This will have a positive impact on your credit history and the average age of your accounts, resulting in an improved credit score
Car Rental Insurance and Roadside Assistance
Some no annual fee cards allow you to use secondary auto insurance to supplement your primary coverage. Additionally, some cards will provide roadside assistance, covering tire repair, towing and fuel delivery.
No Fee Credit Cards FAQs
What is a no fee credit card?
Most credit cards require you to pay an annual fee to the card issuer, ranging from $25 to $550 or more per year. The annual fee is meant to increase revenue and offset other administrative costs (like technology services and customer service). A no fee credit card has no annual fee.
How do no fee credit cards work?
If you like keeping your credit card costs (or incurring none at all) then a credit card with no annual fee is the right choice. While no fee credit cards don’t charge an annual fee, you should understand card issuers often seek to recoup costs via other means, including cash advance fees, late payments fees and foreign transactions fees. Luckily, all these fees are avoidable if you use your card responsibly. As a result, you may not be eligible for as many perks or rewards; but we don’t think you’ll mind. Your saving money, after all!
What rate can I get with no fee credit cards?
Besides offering a $0 annual fee, these credit cards may also extend a 0% APR on balance transfers for 12–18 months. However, the rate you get with this card depends on your credit worthiness. The rates are variable, and you can score anything between 10% and 25%. Some cards will also let you rack up a flat cash back rate for every dollar spent.
Can anyone get a no fee credit card?
A no fee credit card might be a great option if you rarely use credit cards but want to maintain your credit score. After all, these cards can be easier to get since they don’t always require the highest of credit scores. And while anyone can apply for no fee card, those who would get the most value out of no fee credit cards tend to fit the following profiles:
- New credit card users. A no fee credit card might be a great option if you’re just getting started with credit cards and want to understand the market better. Besides, your spending might not be sufficient to offset the annual fees. With this card, you can develop a habit of making your monthly payments and keeping track of your spending as you look fto upgrade.
- Someone who needs to consolidate debt. A no annual fee credit card would be a great option if you already hold other credit cards and want to consolidate the balances. Some no fee cards offer a 0% intro APR on balance transfers and a 12 to 18-month offer for all balance transfers.
- Occasional credit card user. A no fee credit card is a great option if you plan to use your card occasionally. With an annual fee credit card, you’d need to spend a certain minimum on it to really see value from it.
How do I compare different no fee credit cards?
When comparing no fee credit cards, you must first understand your needs. If you plan to carry a balance, consider picking a card with a 0% APR on balance transfers or purchases for a limited period. Make sure you understand your card’s ongoing variable APR since the interest rate will reset once the promotional rate expires.
Compare different rewards programs if you want to earn some rewards. Some no fee cards will offer cash back or travel rewards, so make your choice based on where you spend money most. You could also compare cards based on the cardholder benefits and customer protections you’re eyeing. Some no fee credit cards provide perks like extended warranties and purchase protection—so keep an eye on such benefits as you make your comparison.
While no fee credit cards don’t charge an annual fee, card issuers often seek to recoup costs via other means, including cash advance, late payments and foreign transactions. Luckily, all these fees are avoidable if you use your card responsibly.
