Earn rewards on a budget with these no-annual-fee credit card strategies

Editor’s note: This is a recurring post, regularly updated with new information and offers. If you ask TPG staffers for a credit card recommendation, there’s a good chance we’ll recommend a card that has an annual fee. Most of our favorite cards come with many benefits that provide value well beyond their annual fee costs, …

Jun 4, 2025 - 16:06

Earn rewards on a budget with these no-annual-fee credit card strategies

Editor’s note: This is a recurring post, regularly updated with new information and offers.

If you ask TPG staffers for a credit card recommendation, there’s a good chance we’ll recommend a card that has an annual fee. Most of our favorite cards come with many benefits that provide value well beyond their annual fee costs, so we consider them well worth paying.

But you don’t have to pay an annual fee to have a solid credit card strategy. Whether you’re new to credit cards and hesitant to make that kind of commitment or you’re sticking to a tight budget, you may decide to opt for one (or more) of the great no-annual-fee credit cards on the market.

Here are some ways to have a credit card strategy without paying an annual fee.

Cash-back strategy

Most no-annual-fee credit cards are in the cash-back category. Many beginners prefer the flexibility of cash-back rewards, but they also appeal to more advanced users who don’t have the time (or the inclination) to worry about maximizing points and miles.

Using a credit card at a farmers market — FG TRADE/GETTY IMAGES

To maximize your cash-back rewards, try having one flat-rate earning card, one with consistent bonus categories and one with rotating categories.

For example, you could stack the following no-annual-fee cash-back cards:

Citi Double Cash® Card (see rates and fees): Earn 2% back on all purchases (1% when you buy and 1% when you pay your bill).
Capital One Savor Cash Rewards Credit Card: Earn 5% back on hotels and rental cars booked through Capital One Travel, 3% back at grocery stores (excluding superstores like Walmart and Target), dining, entertainment and popular streaming services and 1% cash back on all other purchases. Plus, enjoy no foreign transaction fees on purchases outside the U.S.
Chase Freedom Flex® (see rates and fees): Earn 5% back on up to the first $1,500 spent on rotating categories each quarter (activation required), 5% back on travel booked through Chase Travel℠, 3% on dining (including takeout and eligible delivery services) and on drugstore purchases, 2% back on Lyft rides (through Sept. 30, 2027) and 1% on all other purchases.

Just be aware that some cash-back cards do charge an annual fee, so check the card’s fine print before applying.

Related: Best cash-back credit cards

Travel rewards strategy

Even those who want to earn travel rewards on their cards have options for no-annual-fee cards.

Hotel and airline cobranded cards

Generally, airline and hotel cobranded cards that don’t charge annual fees won’t come with many perks.

Some no-annual-fee hotel cards offer automatic elite status with on-property benefits; these cards are best for newer travelers or those who aren’t loyal to one particular hotel chain.

Hilton's Ka La'i Waikiki Beach LXR resort — HILTON

The no-annual-fee Hilton Honors American Express Card (see rates and fees), for example, comes with automatic Hilton Silver elite status, which allows you to take advantage of the program’s fifth-night-free benefit.

As for no-annual-fee airline cards, these generally come with inflight discounts for that airline. They may also offer additional perks if you meet a certain spending threshold. For example, the United Gateway℠ Card (see rates and fees) offers a 25% discount as a statement credit for inflight food, beverages and Wi-Fi.

Transferable rewards cards

While not very common, some no-annual-fee cards earn transferable rewards. The Blue Business® Plus Credit Card from American Express, for example, has no annual fee (see rates and fees) and earns Membership Rewards points that you can transfer to any of Amex’s 21 hotel and airline partners.

If you’re worried about qualifying for a business card, it’s a lot easier than you might think. Even a simple side hustle like dog walking is enough to get a card like the Blue Business Plus.

Two travelers looking at a mobile phone in an airport — FRAZO STUDIO LATINO/GETTY IMAGES

You can also take advantage of the ultimate no-annual-fee rewards duo: the Capital One VentureOne Rewards Credit Card and the Capital One Savor Cash Rewards.

Alone, the VentureOne earns 1.25 transferable Capital One miles per dollar. Even though the Savor is a cash-back card, holding both allows you to combine your rewards from both cards. By doing this, you can take advantage of the VentureOne’s full range of redemption options, including access to Capital One’s impressive roster of 15-plus transfer partners.

Bottom line

You don’t have to pay annual fees to have a great card strategy. Whether you want to earn cash back, transferable rewards or just be able to maximize your use of points, there are some great no-annual-fee card options for you to choose from.

Being on a budget doesn’t have to mean saying goodbye to credit card rewards. In fact, depending on the card you choose, a no-annual-fee card can help you save even more money.

For rates and fees of the Hilton Honors Amex, click here.
For rates and fees of the Amex Blue Business Plus, click here.