When choosing a travel credit card, you want to balance the rewards it earns and benefits it provides against the annual fee. The problem is that it can be hard to know if the rewards and benefits are worth the cost of the card.
Many rewards credit cards waive the first year’s annual fee so you can test out the card’s features before committing yourself to paying a fee. We’ve compiled a list of the best travel credit cards that waive the first year’s annual fee so you can try them for yourself.
Why would you pay an annual fee for a travel credit card?
Credit cards with annual fees tend to have more recurring benefits and bigger category bonuses. For example, the American Airlines AAdvantage MileUp℠ Card has no annual fee, but it also doesn’t offer free checked bags or an opportunity to earn a $125 flight discount annually. And some benefits, such as a free hotel night on your cardmember anniversary, only kick in after you’ve paid your first annual fee. Here are a few reasons why you might consider paying a rewards credit card annual fee:
Save money on flights
Airline credit cards can save travelers money on checked bag fees, priority boarding and in-flight purchases. With most airlines charging $30 each way on domestic flights for a passenger’s first bag, those fees can add up in a hurry. For a family of four, checking bags for a single vacation could cost $240 round-trip.
Airport lounge access
Airport lounges are often a respite from the hard seats, spotty Wi-Fi and limited power outlets of the terminal. Although some lounges are crowded, many travelers still seek them out as a way to enjoy themselves before a flight. Most lounges provide complimentary beverages, snacks and wireless internet, while some even offer massages, full meals and showers.
Annual free nights at hotels
One of the benefits of having a hotel credit card is that many of them include a free night each year. The value of these “free” hotel nights is often considerably higher than the cost of most hotel credit card annual fees. Plus, automatic elite status is generally included. This means you can take advantage of those elite benefits, even if this is your first stay with that hotel brand.
Best travel credit cards with the first year’s fee waived
There are many rewarding travel credit cards to choose from, but most charge an annual fee on the first statement. These five travel credit cards waive the annual fee the first year so you can decide for yourself whether paying it will be worth it:
Capital One® Venture® Rewards Credit Card
The Capital One® Venture® Rewards Credit Card earns an unlimited 2X miles on every purchase. Enjoy a one-time bonus of 50,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $500 in travel. The miles can be transferred to one of 15 airline partners, including Cathay Pacific Asia Miles, JetBlue TrueBlue and Avianca Lifemiles, for potentially greater value.
The card has no foreign transaction fees and offers up to $100 toward Global Entry or TSA Precheck application fees once every four years. The annual fee is $95.
Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard®
The Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard® earns 2 miles on American Airlines purchases and spending at gas stations and restaurants. All other purchases earn 1 mile per $1 spent. Big spenders will receive a $125 American flight discount after completing $20,000 or more in purchases by their account anniversary date. This benefit is applicable annually.
While traveling on American Airlines, cardholders and up to four companions on the same reservation will receive their first checked bag for free. You’ll also enjoy preferred boarding so you can get to your seat faster. During your flight, you’ll receive a 25% discount on in-flight beverages and food. When traveling internationally, there are no foreign transaction fees on your purchases.
CitiBusiness® / AAdvantage® Platinum Select® Mastercard®
The CitiBusiness® / AAdvantage® Platinum Select® Mastercard® offers many of the same benefits as the personal version. However, it is geared toward small-business owners and the categories where they spend the most.
New applicants will receive the following bonus: Earn 65,000 American Airlines AAdvantage® bonus miles after spending $4,000 in purchases within the first 4 months of account opening. You’ll earn 2 miles per $1 spent with American Airlines and on purchases with telecommunications merchants, cable and satellite providers and car rental merchants and at gas stations. All other purchases receive 1 mile per $1 spent.
This travel rewards credit card also offers free checked bags, preferred boarding and a 25% in-flight discount. It also includes an American Airlines Companion Certificate for domestic travel when you spend at least $30,000 during your cardmember year and renew the card. There are no foreign transaction fees and the annual fee is $0 intro for the first year, then $99.
Delta SkyMiles® Gold American Express Card
The Delta SkyMiles® Gold American Express Card comes with a solid welcome bonus: Earn 35,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 3 months. Terms Apply.
You’ll also get 2X miles on purchases with Delta, as well as at U.S. supermarkets and restaurants worldwide. Terms apply.
Cardholders receive the first checked bag free for up to nine people per reservation. Priority boarding with Main Cabin 1 is also included. During Delta flights, you get a 20% discount on purchases like food, beverages and audio headsets. You can also earn a $100 Delta flight credit after making $10,000 in purchases each calendar year. The annual fee is $0 intro for the first year, then $99. Terms apply.
United℠ Explorer Card
The United℠ Explorer Card offers the following welcome bonus: 40,000 bonus miles after you spend $2,000 on purchases in the first 3 months your account is open.
Spending on this card earns 2 miles per $1 spent on United and at restaurants and hotels, while everything else receives 1 mile per $1 spent.
If you pay for a flight with this card, your first checked bag is free for you and one companion, and you’ll both receive priority boarding. United offers a 25% discount on in-flight purchases and two complimentary United Club passes each year. MileagePlus Premier members also receive complimentary upgrades on award tickets, when available.
The card also reimburses up to $100 for Global Entry or TSA Precheck once every four years. There are no foreign transaction fees to worry about when traveling internationally. The annual fee is $0 intro for the first year, then $95.
The information related to Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard® has been collected by NerdWallet and has not been reviewed or provided by the issuer or provider of this product or service.
How to maximize your rewardsYou want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2020, including those best for:
- Airline miles and a large bonus: The Chase Sapphire Preferred® Card
- No annual fee: The Wells Fargo Propel American Express® card
- Flat-rate rewards with no annual fee: The Bank of America® Travel Rewards credit card
- Premium travel rewards: The Chase Sapphire Reserve®
- Luxury perks: The Platinum Card® from American Express
- Business travelers: The Ink Business Preferred® Credit Card
Planning a trip? Check out these articles for more inspiration and advice:
Find the best travel credit card for you
United Explorer: Richer rewards, perks you’ll actually use
Earn more points and miles with these 6 strategies