Best No Annual Fee Credit Cards for July 2023, Which Bank Credit Card is Best With No Annual Fee?

Best No Annual Fee Credit Cards for July 2023

Best No Annual Fee Credit Cards for July 2023 refer to credit cards that do not charge an annual fee for card ownership and provide attractive benefits, rewards, and features to cardholders. These cards are designed to offer financial flexibility and value without the burden of an annual fee.

1. Wells Fargo Active Cash Card

• Annual Fee: $0
• Rewards Rate: 2% cashback
• Intro Offer: $200 cashback on Wells Fargo's website

The Wells Fargo Active Cash® Card is a top choice for those looking for a flat-rate cash-back credit card. With a simple rewards structure, cardholders earn unlimited 2% cashback on all purchases. There is no annual fee, making it a cost-effective option. Plus, as an introductory offer, you can earn $200 cashback when you meet the spending requirement on Wells Fargo's website.

2. Discover it Cash Back Credit Card

• Annual Fee: $0
• Rewards Rate: 1%-5% cashback
• Intro Offer: Cashback Match™ on Discover's website, or call 800-347-0264

The Discover it® Cash Back card is known for its rotating bonus categories that offer higher cashback rates. Cardholders earn 1% cashback on all purchases, and in the bonus categories, they can earn 5% cashback up to a quarterly maximum. Discover also offers a unique welcome bonus where they will match all the cashback earned in the first year for new cardholders.

3. Chase Freedom Flex Credit Card

• Annual Fee: $0
• Rewards Rate: 1%-5% cashback
• Intro Offer: $200 cashback on Chase's website

The Chase Freedom Flex℠ is a versatile cash-back credit card offering a range of bonus categories. Cardholders earn 1% cash back on all purchases and can earn 5% cash back on rotating bonus categories. Additionally, new cardholders can earn a $200 cashback bonus after meeting the spending requirement. The card also comes with valuable benefits such as purchase protection and extended warranty coverage.

4. Capital One SavorOne Cash Rewards Credit Card

• Annual Fee: $0
• Rewards Rate: 1%-10% cashback
• Intro Offer: $200 cashback on Capital One's website

The Capital One SavorOne Cash Rewards Credit Card is an excellent choice for individuals who frequently dine out and enjoy entertainment. Cardholders earn unlimited 3% cash back on dining, 2% cash back at grocery stores, and 1% cash back on all other purchases. There is no annual fee, and as a welcome bonus, new cardholders can earn $200 cashback after spending a certain amount within the first few months.

5. Ink Business Cash Credit Card

• Annual Fee: $0
• Rewards Rate: 1%-5% cashback
• Intro Offer: $750 cashback on Chase's website

The Ink Business Cash® Credit Card is designed for small business owners. Cardholders earn 5% cash back on office supply stores, internet, cable, and phone services, and 2% cash back at gas stations and restaurants. Additionally, you can earn $750 cashback as a welcome bonus after meeting the spending requirement. The card offers valuable benefits for business expenses and has no annual fee.

6. Citi® Double Cash Credit Card

• Annual Fee: $0
• Rewards Rate: 1%-2% cashback
• Intro Offer: N/A on Citibank's application

The Citi® Double Cash Card is a popular choice for flat-rate cash back. Cardholders earn 2% cashback on all purchases, with no category restrictions. The card offers a unique rewards structure where you earn 1% cashback when you make a purchase and another 1% cashback when you pay off that purchase. This card has no annual fee and provides flexibility in earning cashback.

7. U.S. Bank Altitude Go Visa Signature Credit Card

• Annual Fee: $0
• Rewards Rate: 1x-4x points
• Intro Offer: 20,000 Points on US Bank's website

The U.S. Bank Altitude® Go Visa Signature® Card is a great option for dining rewards. Cardholders earn 4x points on dining, 2x points on groceries, and 1x points on all other eligible purchases. Points can be redeemed for various rewards. As a welcome offer, new cardholders can earn 20,000 bonus points after meeting the spending requirement. This card has no annual fee and provides additional benefits like cellphone protection.

8. Wells Fargo Autograph Credit Card

• Annual Fee: $0
• Rewards Rate: 1x-3x points
• Intro Offer: 20,000 Points on Wells Fargo's website

The Wells Fargo Autograph℠ Card is known for its bonus rewards. Cardholders earn 3x points on select categories, such as dining, gas stations, travel, and more. For other purchases, you earn 1x points. As a welcome offer, new cardholders can earn 20,000 bonus points after meeting the spending requirement. This card has no annual fee and provides additional benefits like cell phone protection and travel accident insurance.

9. Hilton Honors American Express Credit Card

• Annual Fee: $0
• Rewards Rate: 3x-7x points
• Intro Offer: 70,000 Points on American Express' website

The Hilton Honors American Express Card is an ideal choice for hotel rewards. Cardholders earn points on eligible Hilton purchases, with 7x points at Hilton properties, 5x points at U.S. restaurants, supermarkets, and gas stations, and 3x points on all other eligible purchases. As a welcome bonus, new cardholders can earn 70,000 Hilton Honors Bonus Points after meeting the spending requirement. This card has no annual fee and provides complimentary Hilton Honors Silver status.

10. Bank of America Travel Rewards credit card

• Annual Fee: $0
• Rewards Rate: 1.5x points
• Intro Offer: 25,000 Points on Bank of America's website, or call (800) 211-3740

The Bank of America® Travel Rewards credit card is designed for simple travel rewards. Cardholders earn 1.5x points on all purchases, and points can be redeemed for statement credits toward travel purchases. As a welcome bonus, new cardholders can earn 25,000 bonus points after meeting the spending requirement. This card has no annual fee, no foreign transaction fees, and provides additional benefits like travel accident insurance.

11. Wells Fargo Reflect Credit Card

• Annual Fee: $0
• Rewards Rate: N/A
• Intro Offer: N/A on Wells Fargo's website

The Wells Fargo Reflect® Card is a credit card that focuses on providing a 0% introductory APR period. It is designed to help cardholders save on interest charges for a specific period of time. While this card does not offer a rewards program, it can be a valuable option for those looking to make large purchases or consolidate debt without incurring interest charges during the introductory period. This card has no annual fee.

12. U.S. Bank Visa Platinum Credit Card

• Annual Fee: $0
• Rewards Rate: N/A
• Intro Offer: N/A on US Bank's website

The U.S. Bank Visa® Platinum Card is another credit card that offers a 0% introductory APR period. This card is ideal for individuals who want to transfer balances or make large purchases while avoiding interest charges for a specific period of time. While it does not offer a rewards program, it provides benefits like cell phone protection and fraud protection. This card has no annual fee.

Should You Get a No-annual-fee Credit Card?

A credit card without an annual fee can be advantageous for various individuals in different situations. Before deciding to get a no-annual-fee credit card, it is essential to consider your spending habits, credit history, and potential rewards that can be earned when using the card for regular purchases.

It is crucial to exercise caution and avoid the temptation to overspend with any credit card. High credit card interest rates make it best to use a credit card only when you can practice good financial habits and pay off the balance in full every month by the due date to avoid accruing interest charges. If you can maintain this habit, a no-annual-fee credit card can be a great option for your everyday spending.

Having a credit card without an annual fee can also serve as a useful tool in emergencies. Keeping such a card on hand for unexpected large expenses can be beneficial. Additionally, using a credit card responsibly and paying the bill on time helps build a positive credit history. With a no-annual-fee credit card, you can have an emergency backup card or use it to establish credit without incurring yearly fees.

Although annual fees on credit cards are not inherently negative, cards with annual fees often offer more premium rewards or benefits compared to no-annual-fee cards. For instance, if you desire a travel card with airport lounge access, it typically comes with an annual fee.

Individuals who can maximize the benefits of high reward rates and other perks that often accompany cards with annual fees might find the cost worthwhile. However, there are plenty of excellent credit cards available without annual fees that can also be advantageous. Ultimately, it is important to evaluate which card aligns best with your financial lifestyle and goals.

What Are Some Key Points to Consider When Using a No-annual-fee Credit Card?

Step-by-step guide to choosing a no-annual-fee credit card:

• Consider your rewards preference: Determine whether you prefer cash back or travel rewards. Some cards offer cash back on purchases, while others provide rewards in the form of travel miles or points. Evaluate the earning potential based on purchase categories and other factors.
• Evaluate perks and benefits: Look for additional benefits offered by the credit cards, such as purchase and travel insurance, cellphone insurance, and welcome bonuses. Assess which benefits align with your needs and usage patterns.
• Check for a 0% APR period: If you carry high balances on other cards and incur significant interest charges, consider a card with a 0% APR introductory period. This allows interest-free purchases or balance transfers for a specific duration. Be aware of any balance transfer fees and ensure you can pay off the combined balance within the 0% period to maximize interest savings.
• Assess other costs and fees: Apart from annual fees, be mindful of other potential expenses associated with the credit card, including foreign transaction fees, late payment fees, returned payment fees, over-limit fees, and regular credit card interest. Consider these factors to understand the overall cost of owning the card.
• Determine card type: Understand the different types of credit cards available to narrow down your options. Non-rewards cards offer a simple experience with low fees and interest rates. Cash-back rewards cards provide varying levels of cash back on purchases, either at a flat rate or in specific spending categories. Travel rewards cards offer miles or points redeemable for travel-related expenses across multiple providers. Secured cards are suitable for individuals with limited or poor credit history, requiring a cash deposit as collateral.
• Compare and select: Finally, compare the available options based on the factors mentioned above. Consider the rewards potential, benefits, fees, and card type that aligns with your preferences and financial situation. Choose the no-annual-fee credit card that best suits your needs and apply following the issuer's application process.

Is a No-annual-fee Credit Card Worth It?

Determining the worth of a credit card boils down to comparing the value it provides against the costs associated with it. The simplest evaluation is to weigh the benefits against the absence of an annual fee. If a card has no annual fee and offers $100 in rewards for your spending, it may appear valuable, leaving you $100 ahead.

However, it's crucial to consider alternative cards in the market. What if another card charges a $50 annual fee but provides $200 in rewards for the same spending? In that case, you would be $150 ahead, suggesting that choosing the first card over the second could cost you $50. This perspective questions the true worth of the no-annual-fee card.

To determine a card's value, you need to assess not only what it offers compared to what it requires from you but also how it measures up against competing cards. Different types of credit cards have varying tendencies regarding annual fees:

• Cash-back credit cards: Most top cash-back cards have no annual fee, except for a few that offer exceptional rewards rates on common spending categories. Despite the fee, these cards often provide more value than their fee-less counterparts.
• Airline credit cards: Many airline cards come with an annual fee, but they also offer benefits like free checked bags and priority boarding, in addition to rewards. These perks can offset the fee, especially if you frequently travel. However, some airlines offer no-annual-fee cards that lack the same level of perks.
• Low interest and balance transfer credit cards: These cards typically don't charge annual fees since their primary purpose is to save you money on interest. Paying an annual fee would diminish their value proposition.
• Personal preference: Some individuals simply prefer not to pay an annual fee, considering it an upfront cost that may or may not be recovered over the year. If you align with this viewpoint, opting for a no-annual-fee card makes logical sense.

Ultimately, assessing the value of a credit card involves a comprehensive comparison of benefits, costs, and available alternatives. It's important to review the terms and conditions of each card and determine which one best aligns with your financial priorities and preferences.

Can I Get the Annual Fee Waived on a Credit Card?

You have the potential to turn any credit card into a no-annual-fee card by negotiating with the issuer to waive the fee. If the credit card issuer values your business and wants to retain you as a customer, they may be open to waiving the annual fee upon request.

It's worth contacting the issuer and politely asking for the fee to be waived. There is no harm in trying, and the worst they can say is no. Your chances of success may be higher if you have a history of using the card regularly and maintaining a positive relationship with the issuer.

While a fee waiver is one possibility, the issuer may offer you a retention offer instead. This involves providing a bonus or incentive that offsets the annual fee's cost. Although you still pay the fee, the rewards or benefits you receive can make up for it. Retention offers function similarly to sign-up bonuses, requiring a certain amount of spending within a specified timeframe to earn the rewards.

Alternatively, if you have a credit card with an annual fee that you don't utilize enough to justify the cost, you can explore the option of downgrading to a no-fee card offered by the same issuer. This is known as a product change and can be as simple as contacting the issuer and inquiring about available no-annual-fee alternatives.

Which Bank Credit Card is Best With No Annual Fee?

There are several banks that offer credit cards with no annual fees, and the best bank credit card with no annual fee can vary depending on an individual's specific needs and preferences.

• Wells Fargo Active Cash Card
• Discover it Cash Back
• Chase Freedom Flex
• Capital One SavorOne Cash Rewards Credit Card
• Ink Business Cash Credit Card
• Citi® Double Cash Card
• U.S. Bank Altitude Go Visa Signature Card
• Wells Fargo Autograph Card
• Hilton Honors American Express Card
• Bank of America Travel Rewards credit card
• Wells Fargo Reflect Card
• U.S. Bank Visa Platinum Card

What Are the Advantages of  No Annual Fee Credit Cards?

No Annual Fee Credit Cards offer several advantages, including:

• Cost savings: The most obvious advantage is that you won't have to pay an annual fee to maintain the credit card. This can save you a significant amount of money over time, especially if you plan to keep the card for an extended period.
• Access to credit: No Annual Fee Credit Cards provide you with access to a credit line without the burden of an annual fee. This can be beneficial for building or improving your credit history, as well as for managing your finances effectively.
• Rewards and benefits: Many Annual Fee Credit Cards still offer rewards programs and benefits. You can earn cash back, points, or miles on your purchases, allowing you to maximize your spending and receive valuable perks such as travel insurance, extended warranties, or purchase protection.
• Flexibility: No Annual Fee Credit Cards often come with more flexible terms and fewer restrictions compared to cards with annual fees. This can give you the freedom to use the card as you see fit, without feeling pressured to meet spending requirements or justify the cost of the annual fee.
• Good introductory offers: Some No Annual Fee Credit Cards offer attractive introductory offers, such as 0% APR on purchases or balance transfers for a certain period. This can help you save money on interest charges or consolidate and pay off existing debt more efficiently.
• Potential for long-term savings: By avoiding annual fees, you can keep your credit card costs low and potentially save more money in the long run. This can be especially beneficial if you plan to use the card for an extended period and don't require the additional benefits provided by cards with annual fees.