The 7 Best Rewards Credit Cards No Annual Fee

Everybody loves rewards due to good work or making a positive impact on a certain issue. If you have a credit card, maybe you pay your debt with some interest at the end of the month. The interest translates to huge profits to the issuing financial institutions. Some credit cards have no liabilities such as annual fees or balance transfer charges. Later I will discuss the best rewards credit card with no annual fee.

Credit card rewards include air travel miles, cashbacks, discounts, and gift cards among others. The rewards are a way of appreciating the card users by the issuing institutions and to encourage them to continue using the cards. Also, credit cards with the most attractive rewards get new customers every now and then. In fact, a card may be having a higher interest rate as compared to another but due to rewards, it ends up attracting more users.

Most credit card issuers check your credit scores before deciding on which card to give you. There are credit cards for bad credit and others for good credit owners. People with good credit scores get credit cards with higher limits plus other benefits such as rewards, zero deposit, low interests, and zero annual fees. Although there are credit cards for bad credit with no deposit, the limits are very low and interest rates are high due to the high risks the issuers incur.

What are the benefits of using a credit card?

Rewards Credit Cards No Annual Fee

There are many benefits that come with credit card usage. Credit cards are handy as compared to debit and prepaid cards.  Let us see the benefits of credit cards.

i) Building credit

Credit cards are very essential tools to build good relationships with your bank as well as other financial institutions. If you utilize your credit card well, you get higher scores and a good credit history that makes it easy for you to borrow loans and lines of credits.

Small businesses can obtain small business credit cards for bad credit so as to create good relationships with their card issuers. This makes it easy for them to obtain loans to grow their businesses.

ii) Fraud free

Unlike the debit and prepaid cards, credit card owners are not liable to any unauthorized use of credit cards. If you lose your card, then the issuing institution has to incur the loss of any used credit from the card as long as you report to them. Also, it is safe to carry credit cards instead of cash as thieves can attack and steal from you once they realize that you have money in your pockets.

iii) Wide acceptance

Credit cards are widely accepted. Many hotels, hostels, car rental businesses, and so on prefer credit card payment instead of debit or prepaid cards since it is easy to deduct the cost of any damage.

iv) Grace period

Credit cards do not consume your balance in your checking account. Your money remains there until when unable to pay your bills then your card issuer will recover the debt from the balance in your account. If you get a debit or prepaid card, you start using money in your account right away.

v) Reward points and cashbacks

Most credit card issuers give rewards and cashbacks to their customers. Cashbacks help you in the future to buy something else. Reward points can be redeemed at designated places as per the issuer’s terms. Most credit cards for fair credit with high limits give points and cashbacks to the holders.

How do I get a credit card?

If you are 18 years and above and have the national ID, Social Security Number, and have a stable and verifiable source of income, then you qualify to get a credit card. It does not matter whether you have good credit or not.

Also, some credit card issuers do not check your credit history. This means that some financial institutions offer guaranteed approval of credit cards for bad credit upon application.

Can I send money using a credit card?

Yes. You can send money to recipients within the country or in other countries of the world using a credit card. Most of these cards are made to operate even across borders.

If you have someone in Australia and you are in the US, then you can transfer money using a routing number and account number to the person. You only need to log into your online account of your credit card and navigate to the ‘Send money’ option. For international transfers, you will have to do a currency conversion so that they can receive the exact amounts according to the local currencies.

Which are the 7 best rewards credit cards with no annual fee?

If you are looking for a credit card that will reward you for your loyalty, then choosing any of the following cards will serve you right.

1) Discover it Cash Back

The card has zero annual fees. The regular APR is 11.99% – 22.99% variable. With this card, you will earn 5% cashback on everyday purchases at places like Amazon.com, grocery stores, restaurants, gas stations, and when you pay using PayPal, up to the quarterly maximum upon activating the card. Also, you will automatically earn 1% unlimited cash back on all other purchases.

The reward you get when using this card does not expire and thus you can use them anytime. The issuer will always send you an alert if they discover that your Social Security Number is on any of the dark websites. Learn more.

2) Capital One Quicksilver Cash Rewards Credit Card

Apart from paying zero annual fees, you will earn unlimited 1.5% cash back on every purchase you make each day. The cashback does not expire as long as your account is active.  Also, there is no limit on how much cash back you can earn from your card usage.

The intro bonus is $150 when you spend $500 on purchases within 3 months of account opening while the regular APR is 15.49% – 25.49% variable. Furthermore, there are no foreign transaction fees. Learn more.

3) Blue Cash Everyday Card from American Express

Get the card and pay zero annual fees. Furthermore, you will get a $150 intro bonus after you spend $1,000 in purchases on your new card within the first 3 months of account opening.  Again, you will earn 3% cash back at U.S. supermarkets on purchases of up to $6,000 per year, then 1% of the following purchases.

Also, you will get a 2% cash back at U.S. gas stations as well as at select U.S. department stores. The card will also give you a low intro APR: 0% for the first 15 months on purchases from the date of account opening, and thereafter, a variable rate of 13.99% to 23.99%. Learn more.

4) Citi Double Cash Card

The issuer charges no annual fee for this card. The regular APR is 13.99% – 23.99% variable. The card allows balance transfers but within the first four months of account opening. You pay $5 or 3% of the amount of each transfer, whichever is greater.

Again, you will earn 2% on every purchase with unlimited 1% cash back when you buy. Also, you will get an additional 1% cashback as you pay for those purchases. When redeeming your cashback, you can choose to receive it as a statement credit, direct deposit, check; or convert to points. Learn more.

5) Discover it Miles

Discover it Miles is another credit card that does not charge any annual fee. The card will earn you unlimited 1.5x Miles for every dollar you spent on all purchases. It has 0% Intro APR for 14 months on purchases, and then 11.99% to 22.99% Standard Variable Purchase APR will take effect. Interestingly, the card has no blackout dates.

The card does not have a spending minimum. You can redeem miles for cash, or as a statement credit towards a travel purchase. You will also get an alert in case your Social Security Number is on any of the dark websites. Learn more.

6) Chase Freedom Unlimited

Chase Freedom Unlimited is one of the best cards with zero annual fees. With the card, you will be able to earn a $200 bonus after you spend $500 on purchases in the first 3 months of account opening. Also, earn 5% cash back on grocery store purchases on up to $12,000 in the first year excluding Target or Walmart purchases.

Moreover, you will earn 3% at restaurants, including takeout and eligible delivery services as well as on drugstore purchases. You will also earn 1.5% on all other purchases. Learn more.

7) American Express Cash Magnet Card

The card has 0% intro APR on purchases for 15 months from the date of account opening. Thereafter, a variable APR of 13.99% to 23.99% applies. There is no annual fee for the card. With the card, you will earn unlimited 1.5% Cash Back on purchases you make.

Furthermore, you will earn a $150 intro bonus after you spend at least $1,000 in purchases with your new Card within the first 3 months of getting the card.

According to the Feb 2020 Nilson Report, the American Express card can now be accepted at approximately 99% of places in the US that accept credit cards. Learn more.

Bottom line

Credit card rewards are a good way to reward credit card users of their loyalty. It encourages spending and thus increasing the profits of the issuing companies. As a credit card user, you can redeem the cash backs and points thus reducing your credit card debt. Also, if a card has a $0 annual fee, it reduces the cost of using the card to the consumers.