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Many credit cards charge an annual fee to keep the cardholder’s account open and receive associated benefits and rewards. Rewards also depend on the cardholder’s spending habits and ultimately benefit from it, so the annual fee is worth the money. On the other hand, some credit cards with no annual fee charge nothing to keep your account open. Their rewards may not be as high as annual fee cards, but of course no annual fee credit cards are still good for the right people.

Who is the Best No Annual Fee Credit Card?

A no-annual-fee credit card may not be for everyone, especially for those who want to earn and enjoy cash back or the great rewards that come with a rewards credit card. However, they are a good option for the following groups of people:

1. New credit card users

As a new credit card user, you may be unfamiliar with developing strategies to get the most out of your credit card. Also, thinking about and preparing for annual fees can be difficult, especially if you are a young person with a basic income.

2. Credit Score Generator/Reconstructor

A credit card with no annual fee is also a great option for people looking to build their credit score or rebuild after a financial recession. Because most rewards credit cards require good credit, some no-annual-fee cards accept Score Builders with bad credit or no credit history.

3. Debt managers

Those managing debt can benefit from no-annual-fee credit cards, which often offer an introductory zero APR on purchases, transfers, or both. Such cards can provide cardholders with an interest-free window of opportunity to transfer funds between cards or make large purchases. Fund transfers must be completed within the first few months of account opening for most cards.

4. Cardholders who want diversity

Seasoned cardholders with travel rewards points or a business credit card may find a no-annual-fee credit card useful, worth their time for the added benefit of everyday purchases, and with zero introductory APRs.

Top credit cards with no annual fee

With these factors in mind, you can start your research and choose a credit card with no annual fee. Before you do that, realize that you want to make the most of it. It is recommended that you pay your balance on time or in full each month to avoid building up your credit card balance. Plus, paying your balance and bills on time will help you rebuild your credit score, so you’ll be eligible for a rewards credit card in the future to match when you’re ready.

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Now let us bring you our top 3 no annual fee credit card recommendations so you can compare and make the right decision at your own pace.

1. Chase Freedom Unlimited®

Chase Freedom Unlimited® offers a zero percent APR on purchases and balance transfers for the first 15 months, after which the APR varies between 14.99% and 23.74%. Chase Freedom Unlimited® gives you free access to your score, real-time alerts, and more with the Chase Credit Journey that tracks your credit score!

Chase Freedom Unlimited® also offers 6.5% cash back on your travel purchases through Chase Ultimate Rewards®, allowing you to redeem cash back rewards, travel, gift cards and more. You’ll also get 4.5% cash back on drugstore, restaurant and restaurant purchases (including takeout and delivery), and finally 3% cash back on all other purchases up to $20,000 in the first year.

After spending $20,000 in the first year, you’ll get 5% cash back on travel, 3% cash back on pharmacies and restaurants, and finally unlimited 1.5% cash back on all other expenses. There is no minimum requirement to redeem for cash back, and you can opt for a bank statement or direct deposit into your savings account.

2. Hilton Honors American Express Card

The Hilton Honors American Express Card offers its cardholders numerous rewards. For example, after spending $1,000 in the first 3 months of membership, you can earn 70,000 Hilton Honors Bonus Points in addition to the Free Night Award.

The Hilton Honors American Express Card charges a variable annual interest rate of 15.74% to 24.74% on purchases and transfers.

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Plus, you’ll earn an additional 50,000 Hilton Honors Bonus Points after you spend $5,000 on your credit card in the first six months. Earn 7x Hilton Honors Bonus Points on purchases and reservations at any hotel or resort in the Hilton portfolio.

Earn 5x Hilton Honors Bonus Points at eligible restaurants, supermarkets and gas stations. Earn triple Hilton Honors Bonus Points on all other qualifying purchases.

The Hilton Honors American Express Card also charges you free international transaction fees, making it a great choice for international travelers.

3. Citi® Double Cash Card

The Citi® Double Cash Card gives you 0% APR on purchases and transfers for 18 months; you will then be charged between 13.99% and 23.99% APR.

As the name suggests, the Citi® Double Cash Card gives you double your cash back; it gives you 2% on every purchase. To explain further, you get 1% cash back on purchases and another 1% cash back when you pay for purchases. Such benefits can only be found on the Citi® Double Cash Card, and there are no caps or restricted categories for cash back purchases. To earn your cash back, the Citi® Double Cash Card insists you pay a minimum monthly payment as this encourages responsible use.

International transaction fees on this card are typically 3%, so if you travel abroad a lot, this might not be the best option. You will be charged a 3% balance transfer fee for the first four months, after which the fee increases to 5%.

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4. Capital One Quicksilver Cash Rewards Card

The Capital One Quicksilver Card gives you a 1.5% cash back credit on all purchases. It also gives you a welcome deal, earning $200 in cash back after you spend the first $500 in the first three months.

Capital One Quicksilver extends its Zero Annual Rate (APR) for 15 months, during which you will not be charged interest on balance transfers and interest, after which the APR will be between 14.99% and 24.99%. Capital One Quicksilver also has no overseas transaction fees and is a great option to help you save on annual fees and 1.5% cash back.

You’ll also get 24-hour concierge service, extended warranty protection for purchases and travel upgrades.

How to choose the best annual fee-free card?

Choosing a credit card shouldn’t be a blind decision; if you haven’t done your research, you might be surprised at the hidden costs and benefits that don’t fit your lifestyle.

The same applies to credit cards with no annual fee; choosing the right one can give you the benefits you’re looking for. First, you should consider some factors and compare some tariffs.

Factors to Consider

1. Your spending habits

Understanding your spending habits is critical to making the right credit card choice. Each type of no-annual-fee credit card offers rewards in specific categories, such as restaurants and restaurants, gas stations, or supermarkets. So if you know where most of your spending goes, you can choose accordingly and make the most of your rewards.

2. Benefits and Rewards

The next logical consideration is the benefits and rewards your no-annual-fee credit card can offer you. As mentioned earlier, different cards offer different types of rewards, such as cash back rewards, airline miles or points, or discounts on meals or gas. You should know what type of reward you are looking for in order to make the right decision.

3. No annual fee

Annual fee credit cards often offer greater benefits and rewards. Most also let cardholders earn a certain number of points against a certain purchase amount for the first few months. Cards with no annual fee usually offer lower rewards, but you may still find the perks you get in the categories you spend your money worth it.

Price to compare

A card with no annual fee doesn’t mean you’re exempt from other ongoing fees and duties that may apply to your purchases. In addition to balance transfer fees, late fees, foreign transaction fees, and minimum repayments, you should always monitor and compare APRs for purchases and balance transfers.

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