If you ask TPG staff for a credit card recommendation, chances are we’ll recommend a card that has an annual fee. Most of our favorite cards offer many benefits that provide value well beyond the annual fee, so we think they’re worth paying for.
But you don’t have to pay an annual fee to have a solid credit card strategy. Whether you’re new to credit cards and hesitant to take on that kind of commitment, or you’re on a tight budget, you may decide to opt for one (or more) of the great no annual fee credit cards listed on are available on the market. .
Here are some ways to adopt a credit card strategy without paying an annual fee.
Cashback strategy
Most credit cards without annual fees can be found in the cashback category. Many beginners prefer the flexibility of cash back rewards, but they also appeal to more advanced users who don’t have the time (or inclination) to worry about maximizing points and miles.
To get the most out of your cashback rewards, try having one flat-rate earning card, one with consistent bonus categories, and one with rotating categories.
For example, you can stack the following cards:
- Citi® dual cash card (see rates and fees): Earn 2% back on all purchases: 1% when you buy and 1% when you pay your bill.
- Capital One SavorOne Cash Rewards Credit Card: Earn 3% back at grocery stores, dining, entertainment and popular streaming services, and get waived foreign transaction fees (see rates and fees) on purchases outside the US
- Chase Freedom Flex: Earn 5% back on purchases in rotating bonus categories (on up to $1,500 in combined spend each quarter after activation), 5% back on travel purchased through Chase Ultimate Rewards, and 3% back on restaurant and drugstore purchases.
Keep in mind that some cash back cards charge an annual fee, so check the card’s fine print about fees before signing up.
Related: Best Cash Back Credit Cards
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Travel rewards strategy
But even those who want to earn travel rewards on their card can take advantage of no-annual-fee options.
Cobranded cards for hotels and airlines
In general, airline and hotel cobranded cards that don’t charge annual fees won’t offer many benefits, but some do offer automatic elite status that includes on-site benefits and may qualify you for free nights. The Hilton Honors American Express Cardfor example, comes with automatic Silver status with Hilton, which allows you to take advantage of the program’s free fifth night benefit.
Related: How to get your fourth or fifth night free on award stays
Transferable reward cards
While not very common, some cards earn transferable rewards with no annual fee. For example, the Amex Everyday Credit Card has no annual fees and earns Membership Rewards points that you can transfer to any of Amex’s 21 hotel and airline partners.
You can also take advantage of the ultimate rewards duo with no annual fees: the Capital One VentureOne Rewards Credit Card (see rates and fees) and the Capital One SavorOne (see rates and fees). The VentureOne alone earns 1.25 transferable Capital One miles per dollar. Although the SavorOne is a cashback card, by holding both cards you can combine the rewards of both cards and take advantage of the VentureOne’s full range of redemption options and the SavorOne’s bonus earning capabilities.
The information for the Amex EveryDay Credit Card is independently collected by The Points Guy. The card details on this page have not been verified or provided by the card issuer.
Related: Transferable Miles with No Annual Fees: The Capital One SavorOne and VentureOne duo
In short
You don’t have to pay annual fees to have a great card strategy. Whether you want to earn cash back, earn transferable rewards, or simply maximize your points usage, there are some great no-annual-fee card options to choose from.