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Credit Cards With No Annual Fee

7 min read
Last Updated: May 8, 2025
Getting a credit card

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Key Takeaways

  1. Credit cards with no annual fee can save you money.

  2. Some credit cards may allow you to earn rewards without paying an annual fee.

  3. You may decide to pay an annual fee if the card’s benefits make paying the fee worthwhile.

Some credit card issuers may charge an annual fee for credit cards that come with benefits like cash back on everyday purchases or extensive security features. The annual fee is the cost you pay to access those benefits. Then again, some credit cards that don’t come with an annual fee may not offer many rewards or additional features.

Weighing the benefits of an everyday card with perks against the annual fee can be tricky. Fortunately, you don’t always have to choose between a no annual fee credit card and a rewards credit card. You may be able to get the best of both worlds with a rewards credit card that doesn’t charge an annual fee.

Why choose a no annual fee credit card?

With a no annual fee credit card, you may enjoy features and perks while you build positive credit history—all without an upfront or recurring cost.

You can still earn rewards

Some people may think you have to pay a high credit card annual fee in order to earn rewards, but that couldn’t be further from the truth. Some no annual fee cards earn cash back on every eligible purchase. They may even offer a higher rewards rate in your favorite spending categories.

With Discover, you can get all the rewards with no annual fee. Instead of paying for your rewards with annual fees, keep more money in your pocket.

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More budget friendly

Experian™ explains that a credit card’s annual fee usually gets added to your card’s balance in the first month after account opening. Typically, you pay the annual fee again on the anniversary of your account opening date. If you don’t pay the fee, it may accrue interest, like any other balance.

With a no annual fee card, you don’t have to worry about paying more upfront or remembering to cover the extra cost each year. You may save a significant amount of money in the long run that would have otherwise gone toward a fee or interest.

How to choose a no annual fee credit card

The best no annual fee credit card for you depends on how you prefer to use your credit cards. Your spending habits, favorite stores, financial circumstances, and priorities may all influence your decision.

What are your spending habits?

You may maximize your rewards by choosing a credit card that lines up with your spending habits. For example, if you tend to eat out a few nights a week, you may choose a credit card that offers a bonus rewards rate for restaurant purchases over one that rewards grocery store purchases.

You should also consider how you like to earn rewards. Some credit cards have rotating bonus categories. That means different types of purchases earn bonus rewards every quarter. If you find yourself using your card for many different types of transactions, a rotating rewards card might be a good fit. On the other hand, if you don’t want to take the time to activate a new offer and adjust your spending habits each quarter, you may prefer a different option. Some credit cards have flat reward rates across every eligible purchase. Others may have a bonus category that stays the same each quarter.

Are rewards easy to redeem?

Credit card rewards aren’t always easy to use. Before you apply for a rewards credit card, you may want to check its redemption options. Sometimes, you can redeem rewards as a statement credit, gift card, check, or even at checkout from certain merchants.

Even if a card earns a lot of cash back, it may not be worth the hassle if it takes several calls to customer service and a long time on the card issuer’s site to find redemption instructions. With Discover, redeem your rewards for cash in any amount, at any time.1

It’s also important to note that benefit packages change, and some perks that come with annual fee cards like miles or hotel points can be subject to blackout dates.

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Are there other credit card perks?

Rewards aren’t the only helpful credit card features. The best no annual fee card for you may come with other perks, like a great mobile banking app, customizable card, credit monitoring and other security tools, or travel perks. Look for perks that reflect your interests and priorities.

Know your APR

If you tend to carry a credit card balance, some cards may cost you even if they don’t charge an annual fee. A credit card’s APR determines the rate at which your balance will accrue interest if you don’t pay it in full each month. A credit card with a high APR might make debt more difficult to manage.

Some credit cards offer a low or even 0% intro APR. That means purchases you make during the card’s promotional period won’t accrue interest. Just make sure you repay your balance before the introductory period ends. Otherwise, it may begin to accrue interest at the standard rate.

The best no annual fee credit cards from Discover

The best card for you depends on your unique needs and interests. Discover offers a wide range of no annual fee credit card options to meet various needs. Whether you’re an avid traveler, a student building credit for the first time, or anything in between, you may find a good fit.

Cash back credit cards

Cash back cards make excellent no annual fee credit cards for many cardmembers. Not only do you save money on annual fees, but you also earn valuable cash back on purchases. The right rewards card may help you boost certain areas of your budget, even as you spend.

If you drive often, then a no annual fee card that gives a higher level of rewards at gas stations, like the Discover It® Chrome Gas & Restaurants Card, makes a lot of sense.

Did you know?

With the Discover it® Chrome Gas & Restaurants credit card, you can earn cash back on your next road trip with 2% cash back at gas stations and restaurants, on up to $1,000 in combined purchases each quarter.3

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Cards such as the Discover it® Cash Back credit card earn rewards on every purchase, yet don’t have an annual fee. With the Discover it® Cash Back credit card, you earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum when you activate.

Travel credit cards

A credit card with no annual fee can be a great choice for frequent business or personal travelers. For example, the Discover it Miles® Credit Card has no annual fee and you can turn Miles into cash. Or redeem as a statement credit for your travel purchases like airfare, hotels, rideshares, gas stations, restaurants and more.4

Secured cards

If you’re new to credit and looking to build credit history, getting rid of annual fees leaves more money for you to keep up with monthly payments. The Discover it® Secured Credit Card helps you build/rebuild credit with responsible use.5 Whether you’re building credit history for the first time or working to improve a credit score that’s not as high as you’d like, you don’t necessarily have to forgo rewards. With a secured card from Discover, earn cash back on everything you buy.

Students who have just begun their credit journey may also consider a student cash back credit card with no annual fee from Discover.

The bottom line

The best credit card option for you may help you earn rewards on the purchases you make most often without charging a high fee. A credit card with no annual fee can help you keep more money in your pocket every year.

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