Looking for credit cards with no annual fee?

The benefits (and drawbacks) of a no annual fee credit card are not immediately obvious. The downside is that you sometimes sacrifice a higher rewards rate when you choose a card with no annual fee, particularly if the card comes in a no-fee version and a high-rewards version. In that case, you’ll need to crunch the numbers (or get us to do it for you) to determine whether you’re better off paying the fee and recouping it with rewards, or steering clear of the fee. Many people reject cards with an annual fee out of hand, but we suggest doing some calculations before writing them off completely.

But there is a major advantage to having a card without an annual fee: in order to maintain a good credit score, it’s advisable to leave your credit card accounts open even if you’re not actively using them. This is, of course, harder to accomplish when the card sitting in your desk drawer is bleeding annual fees. Having a no annual fee credit card, especially for your first card, can save you money both in recouped annual fees and in lower interest rates down the line because of your good credit score.