What is a no-annual-fee credit card?
Editor's Note
A no-annual-fee credit card is — you guessed it — a credit card that doesn't include an annual fee. That means you won't be charged a yearly fee to use the card, so you can enjoy any perks and earnings rates at a minimal cost.
But why do some cards have annual fees, and is it worth getting a card with an annual fee over a card without one? Keep reading to find out.
What is a credit card annual fee?
A credit card annual fee is a recurring fee that credit card companies charge users to maintain their accounts. It helps issuers cover the cost of card benefits, among other things and can range from $0 to more than $500 for the most exclusive cards.
Most lenders charge the fee annually, though some charge a monthly fee instead.
Related: The complete guide to credit card annual fees
Why do some cards have high annual fees?
Some premium rewards cards have annual fees in the hundreds of dollars, but the cards come with lucrative perks that can make paying the fee worthwhile ... if you can take advantage of them. For example, The Platinum Card® from American Express (see rates and fees) charges an annual fee of $895.
However, cardholders are eligible to receive hundreds of dollars in travel perks and statement credits, not to mention valuable earnings rates and other benefits, which help offset the yearly cost.
A pricey card like the Amex Platinum won't make sense for everyone, but if you're a frequent traveler who spends thousands of dollars each month, the card could be a valuable addition to your wallet.
Types of no-annual-fee credit cards
While not as lucrative as the Amex Platinum, many no-annual-fee credit cards offer rewards and other benefits. Here are a few types of no-annual-fee cards you can find on the market:
- Store-brand cards: Cobranded store credit cards offer earnings rates and rewards for a particular store brand, such as Amazon, Costco or Target. They are typically not very valuable if you don't shop at that store often.
- Cash-back cards: These cards offer a return on your spending as cash back, typically with bonus earnings in categories such as "travel" or "groceries."
- Airline cards: Issued by a specific airline program, the no-annual-fee options come with fewer perks than their more expensive counterparts.
- Hotel cards: These are similar to airline cards, but rewards for hotel cards are for a particular hotel loyalty program.
- Low-interest cards: These cards are designed to help you pay off debt at your own pace without worrying about interest. Many include an introductory 0% interest period.
- Balance transfer cards: Balance transfer cards usually waive the annual fee for the first year and allow users to transfer other credit card balances to the card and pay it off at a reduced interest rate.
Related: Cash back vs. travel rewards: How to choose a credit card
Should you get a no-annual-fee credit card?
Their low cost makes credit cards with no annual fees solid choices for many borrowers.
With no annual cost, these cards are easy to justify keeping in your wallet. And many no-annual-fee cards allow you to earn modest rewards and come with additional benefits.
Related: 7 reasons you should get (and keep) a no-annual-fee credit card
Bottom line
No-annual-fee credit cards are ideal for the cost-conscious borrower who wants the convenience of a credit card without worrying about fees. This type of card is also a good choice for anyone new to the world of credit cards, as it will allow you to learn the ropes before graduating to mid-tier and premium cards.
While premium credit cards offer more lucrative rewards and benefits, most come with high annual fees. Many no-annual-fee cards allow you to earn rewards without having to sort out bonus categories or satisfy high spending levels.
Related: The best premium credit cards: A side-by-side comparison
For rates and fees link for the Amex Platinum Card, click here
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| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
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- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees