There are many advantages that come with having a credit card, and they’re not only limited to the rewards you can earn. Credit cards make it easy to build a strong credit profile that can help you qualify for a mortgage or a car loan for starters. Not only that, but many credit cards offer consumer protections like extended warranties on qualifying purchases and purchase protection against damage or theft.
The bad news about credit cards is that, by and large, they make it expensive to carry debt. The average credit card APR is currently over 17%, which means you’ll fork over plenty of interest if you carry a balance from month to month.
However, it’s crucial to understand that you don’t have to carry a balance — and that you really shouldn’t. You can even use credit “for free” provided you avoid debt, always pay your bill on time, and choose a credit card that doesn’t charge any annual fees.
Which credit cards never charge an annual fee? We’ve profiled the four best options of 2020 below:
Citi Rewards+℠ Card
The Citi Rewards+℠ Card makes it easy to earn no-fuss rewards without an annual fee. Earn 15,000 bonus points after you spend $1,000 in purchases with your card within 3 months of account opening; redeemable for $150 in gift cards at thankyou.com. Earn 2X ThankYou® Points at Supermarkets and Gas Stations for the first $6,000 per year and then 1X Points thereafter. Plus, earn 1X ThankYou® Points on All Other Purchases.
As an added bonus, this card gives you 0% APR on purchases and balance transfers for 15 months, followed by a variable APR of 13.49% to 23.49%, based on your creditworthiness.
- The Citi Rewards+℠ Card - the only credit card that automatically rounds up to the nearest 10 points on every purchase - with no cap.
- No annual fee
- Earn 15,000 bonus points after you spend $1,000 in purchases with your card within 3 months of account opening; redeemable for $150 in gift cards at thankyou.com
- Some cards offer a higher rate of rewards in some categories
- A balance transfer fee applies when you use this card to consolidate debt
Chase Freedom Unlimited®
The Chase Freedom Unlimited® is another top cash-back credit card that gives cardholders 1.5% back for each dollar they spend. However, you can also earn $200 bonus when you spend $500 on your card within three months of account opening.
If you want to avoid interest for a limited time, this card gives you 15 months at 0% APR for purchases and balance transfers, followed by a variable APR of 14.99% to 23.74%. This card also offers plenty of ways to cash in your points, including for gift cards, statement credits, travel, merchandise, and experiences.
- Earn a $200 bonus when you spend $500 within three months from account opening.
- Earn unlimited 1.5% cash back on all other purchases.
- 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.
- Either $5 or 5% of the amount of each transfer, whichever is greater.
- Some cards offer a higher rate of rewards in certain categories.
Capital One® VentureOne® Rewards Credit Card
The Capital One® VentureOne® Rewards Credit Card starts cardholders off with 20,000 bonus miles worth $200 when they sign up and spend $1,000 on their cards within three months of account opening. Cardholders also earn unlimited 1.25x miles for each dollar they spend, and without an annual fee.
There’s no limit to the amount of miles you can earn, and they won’t expire while you maintain your credit card account. On the redemption side of the equation, this card lets you cash in miles for any type of travel at a rate of one cent per point. You can also transfer miles to a variety of airline partners, although transfer rates vary.
To sweeten the pot, the Capital One® VentureOne® Rewards Credit Card gives you 12 months with 0% APR on purchases, followed by a variable APR of 15.49% - 25.49% Variable.
- Earn a flat 1.25 miles for each dollar you spend
- Enjoy 0% intro APR on purchases for 12 months; 15.49% - 25.49% variable APR after that
- Earn $200 in bonus cash when you spend $1,000 on your card within three months of account opening
- This card offers a lower rewards rate than some competing cards, including cards on this list
- The 0% APR offer on this card only applies to purchases, and it’s only good for 12 months
Citi® Double Cash Card
Finally, make sure to check out the Citi® Double Cash Card. This card makes it easy to earn cash back with every purchase. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
This card also offers 0% APR on purchases and balance transfers for 18 months, followed by a variable APR of 13.99% - 23.99% based on your creditworthiness..
- There are no caps on cash back earned, and it all adds up fast.
- Earn cash back twice on every purchase, wherever you use your card.
- Save on interest with 0% APR on purchases and balance transfers for 18 months
- Some cards offer a higher rewards rate on regular, non-bonus spending
- A 3% balance transfer fee applies when you transfer high interest debt from another credit card
*This content is not provided by the issuer. Any opinions expressed are those of CreditSoup alone, and have not been reviewed, approved or otherwise endorsed by the issuer.
Editorial Disclaimer: Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles. The information is accurate to the best of our knowledge when posted; however, all credit card information is presented without warranty. Please check the issuer’s website for the most current information.