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Home / Credit Cards / 5 Credit Cards That Have No Annual Fee


Credit Cards No Annual FeeOne way that many credit card companies try to maximize their profit margin is by charging an annual fee. As if the interest rate and the cut they take from each retailer isn’t enough, right? There are several companies that offer cards sans the annual fee despite the temptation of increased profit. Here are five great options available to you.

The Iberia Bank Visa Classic card has the lowest interest rate of any card on the market. The bank takes the prime interest rate and adds 4 percent. Currently that equals to around 7 percent charged on balances. The catch is that this card is only available to those with excellent credit.

The Pentagon Federal Credit Union (PenFed) offers several cards without an annual fee, but the PenFed Platinum Rewards card may be the best. You earn 5 points per dollar spent on gas, 3 points for groceries, and 1 point for all other purchases. The points are redeemed at one cent per point and you have to redemption options. Option one is prepaid Visa cards. Option two offers a selection of merchandise to choose from.

American Express offers the Fidelity Investment Rewards card. You will earn two percent cash back on all purchases. All rewards that are earned are deposited into your Fidelity IRA, Fidelity-Managed 529 account, brokerage account, cash management account, or any other eligible Fidelity account on a monthly basis. You have seven interest free months on balance transfers, but American Express charges a four percent fee on those transfers. Ouch!

The Hilton HHonors Visa Signature card is the only leading travel-reward credit card that does not charge an annual fee. You will receive 40,000 bonus points after spending they first $750. You also earn six points for dollar spent at Hilton properties, grocery stores, drugstores, gas stations, wireless and home phone providers, internet, cable, and with satellite TV service providers. All other purchases garner three points per dollar. As little as 7,500 can earn you a free night at Hilton properties including Embassy Suites, Doubletree, and Hampton Inn. The more points you have, the better quality property you can get a room at. For instance, a free night at a Waldorf Astoria will run between 50,000 and 60,000 points.

Chase offers the Chase Slate card without an annual fee. This card has two outstanding features. The first is participation in the Blueprint program. Blueprint allows you to reduce your overall interest payments by paying some charges in full while carrying a balance on others. There are also easy to use budgeting and goal setting features. The second feature of note is a 15-month, zero-percent promotional APR on balance transfers. The interest free part is not exceptional, but there are no transfer fees, which is. This introductory offer is subject to change at any time, so ask about it before applying for the card.

Each of these cards is a great option in its own right, but you need to know your credit habits before applying. As always, try to pay your balance in full each month and never let your cards control you.


About the author: Jerry Coffey


Jerry Coffey spent many years in a debt-riddled gray area somewhere between broke and desperately broke. His seemingly endless need for more and more cash led him to payday loans, repossessions, bankruptcy, and depression. After years of the same financial style, he heard a piece of advice that inspired him to find a way to change. The advice: ''The very definition of a fool is someone who continues to do the same things, but expects different results.'' This led him to a much more frugal lifestyle that sees all of his bills paid on time and a growing savings account. Even the seed of a retirement account has begun to sprout.


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