The Best Credit Cards With No Annual Fee

The PenFed Premium Travel Rewards American Express Card

We’ve told you about this card before, but it’s such a good deal we can’t help but mention it again. PenFed’s Amex (Stock Quote: AXP) gives cardholders five points for every dollar spent on airfare purchases and one point for every dollar spent on other purchases. The card doesn’t carry a foreign transaction fee and also offers complimentary 24-hour concierge service that helps consumers find additional travel discounts, which is particularly impressive considering it has no annual fee and an APR around 13.99%.

“The rewards are beyond pretty good,” Arnold says. The only drawback per se is that PenFed is a credit union and only members can apply for their credit card offerings. However, Arnold explains that membership is a bit of a formality as everyone is eligible to join if they make a one-time $15-$20 donation to one of the nonprofit organizations associated with PenFed.
Blue Cash Everyday Card from American Express

Arnold says the best thing about Amex’s no-fee Blue Cash card is that it doesn’t have “the annoying rotating categories that you have to opt into” to receive maximum cash back. Instead, cardholders receive 3% back at supermarkets, 2% back at gas stations and departments and 1% back on other purchases made during the entire year.

Amex currently offers a 0% introductory APR for the first six months. After that, the APR will be 17.24%, 20.24% and 22.24%, depending on creditworthiness.

Chase Freedom

The Chase Freedom card is one of those rewards cards that has revolving 5% cash-back categories you have to opt into, but the restrictions placed on quarterly earnings aren’t as strict as some of its competitors. You earn cash back on up to $1,500 each quarter. (Comparatively, Discover’s More Card only lets cardholders earn 5% cashback on between $300 to $800 in purchases depending on the quarter.)

Additionally, Chase (Stock Quote:  JPM) is currently offering a $100 sign-up bonus to consumers who spend $500 in the first three months of having the card, which Arnold calls “a low hurdle” to jump over. The bank is also offering a 0% APR for the first six months, after which the APR jumps to between 11.99% and 22.99%, based on creditworthiness.