There are a lot of no-annual-fee cards that are great to have in your wallet to help you in your miles and points journey. And you shouldn't overlook these cards despite their low price point. Here's a handful of reasons why you should keep some on your radar:<\/p>\n
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- Transferrable points<\/strong><\/a>:<\/strong> Several no-annual-fee cards such as the Chase Freedom Unlimited\u00ae<\/sup><\/a> (Rates & Fees<\/a>), Citi Double Cash\u00ae<\/sup> Card<\/a> (Rates & Fees<\/a>), and The Blue Business\u00ae<\/sup> Plus Credit Card from American Express<\/a> allow you to earn transferrable points. These points are transferrable to airline and hotel partners that you can turn into free (or nearly free) travel.<\/li>\n
- Extra perks & benefits<\/strong><\/a>:<\/strong>\u00a0Many no-annual-fee cards come with special perks. For example, Bank of America has several cards that allow for free general admission to over 200 museums. Chase offers you credits to use with Doordash<\/a> and Instacart.<\/li>\n
- 0% APR for a limited time<\/a><\/strong>:<\/strong> Some cards might offer you 0% introductory APR on purchases and balance transfers. This intro rate is beneficial if you're trying to pay off a large purchase or attempting to reduce credit card debt. However, it is very important to pay off your balance before the end of the offer. Otherwise, you would pay extra fees plus interest accrued during the period when the APR was 0%.<\/li>\n
- No annual fee for the first year<\/strong><\/a>:<\/strong>\u00a0 Cards offering a $0 introductory annual fee for the first year allow you to “test drive” the card to see if it aligns with your spending habits and benefit needs. Some examples include the Delta SkyMiles\u00ae<\/sup> Gold American Express Card<\/a> (Rates & Fees<\/a>), the United\u2120 Explorer Card<\/a> (Rates & Fees<\/a>), and the Citi\u00ae<\/sup> \/ AAdvantage\u00ae<\/sup> Platinum Select\u00ae<\/sup> World Elite Mastercard\u00ae<\/sup><\/a>.<\/li>\n<\/ul>\n
Even cards that charge no annual fee\u2014or those that offer a $0 introductory annual fee for new cardmembers\u2014have a lot of other fees. Let's talk about why that matters.<\/p>\n
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Credit: Clay Banks\/Unsplash<\/em><\/enter><\/figure>\n Why No-Annual-Fee Cards Are Not No-Fee Cards<\/span><\/h2>\n
While these are all interesting cards, they are not all “no fee;” you can incur fees of various kinds on each of them. Let's take three popular credit cards with no annual fee: Chase Freedom Unlimited\u00ae<\/sup><\/a>, Citi Double Cash\u00ae<\/sup> Card<\/a>, and The Blue Business\u00ae<\/sup> Plus Credit Card from American Express<\/a> (Rates & Fees<\/a>).<\/p>\n
There's no fee for keeping these cards in your wallet year after year. However, labeling these credit cards as “no fee” can be misleading. These cards do have tons of fees \u2014 just not annual fees.<\/p>\n
Consider that the Freedom Unlimited<\/a> has the following fees:<\/p>\n
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- Balance transfer fee: <\/strong>Either $5 or 5% of the amount of each balance transfer, whichever is greater.<\/li>\n
- Cash advance fee: <\/strong>Either $10 or 5% of the amount of each transaction, whichever is greater.<\/li>\n
- Foreign transaction fee:<\/strong> 3% of each transaction in U.S. dollars<\/li>\n
- Interest fees: <\/strong>18.24% - 27.74% Variable APR if you don't pay your full monthly balance.<\/li>\n
- Late payment fee:<\/strong> Up to $40.<\/li>\n
- Returned payment fee:<\/strong> Up to $40.<\/li>\n<\/ul>\n
\n\n\nChase Freedom Unlimited\u00ae<\/sup><\/div>\n<\/div>\n Apply Now<\/a><\/div>\nRates & Fees<\/a><\/span><\/div>\nWelcome Bonus<\/strong>\r\nLimited Time Offer: Earn a $250 Bonus after you spend $500 on purchases in your first 3 months from account opening<\/div>\n <\/div>\n\n Chase Freedom Unlimited\u00ae<\/sup><\/strong>\nWelcome Bonus<\/strong>\r\nLimited Time Offer: Earn a $250 Bonus after you spend $500 on purchases in your first 3 months from account opening<\/div>\nAnnual Fee:<\/strong>$0<\/b><\/div>\nShow more<\/a>Why We Like It<\/a>Highlights<\/a>Earning Rates<\/a>The everyday workhorse of the Ultimate Rewards family of cards earns 1.5% cash back on every purchase, every day of the week. While the Freedom Unlimited earns cash back on its own, the points earned become even more valuable when you hold an Ultimate Rewards card with the ability to transfer points to partners<\/a>. <\/div>\n\n\n- Limited Time Offer: Earn a $250 Bonus after you spend $500 on purchases in your first 3 months from account opening<\/li>
- Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.<\/li>
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!<\/li>
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.<\/li>
- No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card<\/li>
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.<\/li>
- Member FDIC<\/li><\/ul><\/body><\/html>\n<\/div>
- Cash advance fee: <\/strong>Either $10 or 5% of the amount of each transaction, whichever is greater.<\/li>\n
- Extra perks & benefits<\/strong><\/a>:<\/strong>\u00a0Many no-annual-fee cards come with special perks. For example, Bank of America has several cards that allow for free general admission to over 200 museums. Chase offers you credits to use with Doordash<\/a> and Instacart.<\/li>\n
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