Credit Cards with No Annual Fees

This Section Features Credit Cards with No Annual Fees

So, why do credit cards have annual fees in the first place? I mean, it's not like they're losing money on their interest rates or anything. The truth is, credit cards were born with annual fees. The first credit cards out there were charge cards that didn't charge interest because you paid your balance in full every month.

Soon, card holders began to carry balances, and competition heated up between the top credit card issuers for this new and lucrative business. In fact, in the early stages of balance over time credit cards; annual fees were actually removed in by the card issuers in order to entice people to move their company.

No Annual Fees and Credit Type

First rule of thumb, if you have good or excellent credit, and you are not using the card for a specific rewards program, you should almost never have to use credit cards with annual fees. Also, if you have not established credit, there are still some cards available with no annual fees like the Capital One® Cash Rewards for Newcomers card or the Journey Student Rewards from Capital One®.

However, if you do have some credit issues, it's pretty certain that you will have to pay an annual fee. Some cards will infer that you "may not" have an annual fee by showing the cost of the annual fee like this; "$0 - $40", but chances are you will. You shouldn't have to pay more than $40 per year, and if you pay that card on time, chances are you can trade up to get a credit card with no annual fees.

Reward Programs and Annual Fees

If you are serious about using a reward program, e.g. you're a serious traveler, you should probably expand your search to travel reward cards that do have annual fees. On the other hand, if reward programs are nice, but not the entirety of why you want a credit card, you will find more than enough credit cards in this section to suit your needs.

"Up Front Bonus" Cards and Annual Fees

Nowadays, a lot of credit card issuers are offering up-front bonuses like airline tickets, coupons and straight up cash if you simply choose their card over the competitors card. You need to be careful here, some of these card will have annual fees, however a lot of them will not. Again, if you are not a serious reward user, it is probably unnecessary for you to have to pay an annual fee. A good section to visit if you're interested in credit cards with up-front bonuses is the "Limited Time Section".

Regular Cards and Annual Fees

If you could care-less about rewards programs, and if you have good credit, you will find your best deals in the "Regular Cards" section below. These cards offer few perks, if any, but they almost always have the best rates and no annual fees.