Best credit cards with no annual fee in January 2025

According to the latest J.D. Power credit card customer satisfaction study, cardholders are starting to look for cards with lower or no annual fees as credit card debt continues to climb in the U.S. There’s also a growing popularity in redeeming rewards for statement credits versus for travel, which is usually a major focus on cards with annual fees.

No-annual-fee cards are a great fit for many cardholders — especially if you value simplicity, spend modestly, only travel occasionally or just want to avoid the stress that comes with trying to offset an annual fee. 

While credit card annual fees can easily be worth it if a card’s benefits outweigh its cost, this can depend on using the extra credits and the cardholder's preferences.  For example, some credit experts, like Bankrate editor Reena Thomas, are determined to avoid annual fees, even if that means sacrificing rewards potential. For her, they’re simply not worth the hassle.

An annual fee on a credit card is only worth it if you take advantage of the card’s perks or spend enough in a given category to make the most of its rewards rate. If you aren’t doing one or both of these, a premium card could be a money pit and a no-annual-fee card is a better choice for you.

What to consider before switching to a no-annual-fee card

Whether upgrading from a secured card or downgrading from a card with an annual fee, there are a few things to keep in mind before switching over to a no-annual-fee card. 

• Know your spending categories: The best credit cards match your spending. Even though there won’t be an annual fee to offset, it is still quite valuable to have a card that rewards you nicely for the money you’ll already spend.
• Look through all your options: There are quite a few no-annual-fee cards on the market. Multiple credit card applications can hurt your credit, so make sure to look through the details of all the ones that catch your eye before deciding on one of them. 
• Be mindful of the APR: Always be aware of your interest rate so you’ll know how much it’ll cost to carry a balance on your card. Skipping an annual fee is nice, but make sure interest charges won’t eat through the money you save.
• Research credit card perks: No-annual-fee cards may not be as perk-heavy as mid-tier and premium credit cards, but they can still include useful credits and benefits. 

With so many no-annual-fee options to choose from, first-hand experience and perspectives from current users could come in handy when searching for a new card. We checked Reddit and talked with a Bankrate expert to see which no-annual-fee card users say is the best and when an annual fee might be worth it.

Here’s how a Bankrate editor chose his no-annual-fee card

Bankrate editor Steve Dashiell chose a no-annual-fee card with rotating rewards categories to help him keep an eye on his spending:

“Having crashed and burned on my first attempt at using a credit card, I needed my second attempt to keep things simple. But at the same time, I also wanted some extra depth. My thought was pretty simple: I can set up the card to pay off my balance in full at the end of each statement period so that it effectively runs itself. But once I felt comfortable managing the card, I could lean into some extra card features to take advantage of any perks or rewards.

The Chase Freedom Flex℠ came highly recommended by a friend of mine, and it was easy to see why. The card’s rotating rewards categories offer an extra incentive to monitor and plan out your spending, something I wasn’t great at doing. And even if I didn’t feel like chasing a quarter’s categories, I could still earn a reliable 1 percent cash back on all other purchases.

During my research, I also learned about the Chase Trifecta, which was just the type of value ‘expansion’ I was hoping for in the event everything went well with my credit card revenge arc. The fact that the card offered so much potential for no annual fee (along with a recommendation from a friend) made choosing the card a no-brainer.”

— Steve Dashiell, Editor, Credit Cards

Still unsure if a no-annual-fee credit card is right for you? Check out our Credit Card Spender Type Tool to get personalized credit card recommendations based on your credit score, spending habits and daily needs.

No-annual-fee cards can be helpful for anyone, but whether you’re a first-time cardholder or a savvy rewards strategist, it can be difficult to sift through your options. We have a few pointers to help you narrow down your best choices from the sea of options available on the market.

Still unsure if a no-annual-fee credit card is right for you? Check out our Credit Card Spender Type Tool to get personalized credit card recommendations based on your credit score, spending habits and daily needs.

When evaluating the best credit cards with no annual fee, we take into account several factors, including how cards score in our proprietary card rating system and whether they offer features that fit the priorities of a diverse group of cardholders, from earning rewards to scoring a large sign-up bonus to saving on interest. 

We analyzed over 250 of the most popular credit cards and selected standouts that carry no annual fee. We scored each card based on the factors most relevant to its primary category, including its rewards rate, estimated annual earnings, intro APR period, ongoing APR, perks and more to determine whether it belonged in this month’s roundup. 

Here’s a quick breakdown of the key factors in our card scoring methodology and details we considered when putting together our list of the best rewards cards.  

Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.

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