Best Credit Cards With No Annual Fee of June 2021

You might be willing to fork over an annual fee for your credit card if the value of your rewards and benefits outweighs the fee. Generally, cards that charge annual fees come packed with perks, and you can come out ahead despite the cost.

Still, 60% of consumers said having no annual fee is a very important factor when choosing a credit card, according to a 2019 Discover survey about annual fees. No matter what type of credit card you want, look at options with and without annual fees. These examples can show you how an annual fee may or may not pay off.

Chase Freedom Flex vs. Chase Sapphire Preferred Card:
Chase Freedom Flex charges no annual fee and offers a 15-month 0% introductory APR on purchases, while the Chase Sapphire Preferred Card has a $95 annual fee and no introductory APR on purchases or balance transfers.

On Chase Freedom Flex you can earn a $200 cash bonus after spending $500 on purchases in your first 3 months from account opening or an 100,000-point sign-up bonus with the Chase Sapphire Preferred Card but will need to charge $4,000 in the same time frame.

Which card can help you get more cash back depends on your spending habits. Chase Freedom Flex earns 5% cash back on up to $1,500 in quarterly bonus categories you activate; 5% back on travel booked through the Chase Ultimate Rewards portal; 5% back on Lyft rides through March 2022; 3% back on dining, including takeout and eligible delivery services, plus drugstore purchases; and 1% back on all other purchases.

The Chase Sapphire Preferred Card accrues two points per dollar on travel and dining, including eligible delivery services and takeout orders, and one point per dollar on everything else. Cardholders get five points per dollar on Lyft rides through March 2022, a one-year subscription to DashPass for free deliveries and reduced service fees, plus up to $60 in statement credits on qualifying Peloton purchases through 2021. The card also allows you to redeem Ultimate Rewards points for statement credits toward purchases in rotating categories for 25% more value using Chase’s Pay Yourself Back feature.

If you need an introductory APR on purchases or balance transfers, you can rule out the Chase Sapphire Preferred Card. On the other hand, Chase Freedom Flex isn’t the best choice if you don’t spend a lot on the card’s bonus categories or you usually carry a balance. You could pay a high APR based on your creditworthiness.

Bank of America Customized Cash Rewards credit card vs. Bank of America Premium Rewards credit card: The Bank of America Customized Cash Rewards credit card has no annual fee, and the Bank of America Premium Rewards credit card charges a $95 annual fee.

With the no-annual-fee card, you can earn 3% cash back in a category of your choice and 2% back at grocery stores and wholesale clubs, on up to $2,500 quarterly in combined purchases. The card offers unlimited 1% cash back on everything else.

By comparison, the Bank of America Premium Rewards credit card pulls in two points per dollar on travel and dining purchases and unlimited 1.5 points per dollar on all other purchases. Cardholders also get up to $100 in annual statement credits toward incidental airline fees and up to $100 in statement credit every four years for the Global Entry or TSA Precheck application fee.

You can pick up a sign-up bonus with either card. The Bank of America Premium Rewards credit card dangles a 50,000-point bonus worth $500, but you will need to spend $3,000 in purchases in the first 90 days of account opening. The Bank of America Customized Cash Rewards credit card has a smaller $200 cash rewards bonus, but you will need to spend only $1,000 on purchases in the first 90 days of account opening.

If a 0% introductory rate is a priority, the Bank of America Premium Rewards credit card does not offer one. However, the Bank of America Customized Cash Rewards credit card provides a 0% introductory APR for 15 billing cycles on purchases and balance transfers made in the first 60 days. Both cards are eligible for rewards bonuses of up to 75% for members of Bank of America’s Preferred Rewards program.