There are a variety of credit and travel rewards cards that come without an annual fee, offering generous sign-up bonuses and flexible rewards programs. Finding the ideal no-fee travel card requires carefully considering all benefits each offers before determining which best meets your needs.
Some credit cards with annual fees offer premium services and benefits such as concierge service, travel insurance and airport lounge access – yet the interest you pay could eat into any rewards earned.
Cash back
Cash-back credit cards can be an ideal choice for infrequent travellers. They usually come with lower annual fees than travel cards and often feature sign-up bonuses worth several hundred dollars, helping build credit over time. Unfortunately, however, cash-back cards might not be suitable if you carry an outstanding balance as higher interest rates could quickly nullify any rewards from cash back rewards.
Some cash-back credit cards enable you to redeem your earnings as statement credits that reduce the balance owed or bank direct deposits, while others give you the option of receiving a paper check in the mail – however this may take several days.
Many travel cards do not charge foreign transaction fees, while some do. Finding the appropriate card depends on your spending habits and expected travel needs; airline or hotel co-branded cards can provide excellent benefits, though you must meet specific spending requirements to unlock any welcome bonuses they offer.
Points
When it comes to credit cards that offer points or miles redeemable toward travel, there are plenty of choices. The key is finding one with a high rewards rate for spending that fits with your spending habits – this should also take into account “burn rate”, or how much value each dollar spent brings back in rewards.
Chase Freedom Unlimited(r)* offers frequent travelers who seek flexible rewards credit cards without an annual fee a great way to maximize cash back rewards with rotating categories each quarter: 5% in rotating categories plus 3% cash back at dining and drugstores plus 1.5% everywhere else.
Another outstanding option is the Hilton Honors American Express Card, with its generous sign-up bonus and premium perks such as free hotel nights, annual travel credits and Hilton elite status benefits. Furthermore, this card does not charge an annual fee and therefore makes for an excellent alternative.
Airline miles
Many credit cards offer airline miles that can be redeemed for award flights. These rewards can be invaluable if you’re a frequent traveler; just make sure when choosing an airline card that its earn rate covers purchases such as non-airline travel expenses as well as annual fees that could potentially outweigh its annual fee.
Airline mileage rewards cards provide frequent flyers with special perks, including free checked bags and priority boarding. Some cards even have Global Assist hotlines. Furthermore, certain airlines give preference to loyalty program members when selecting who to bump from overbooked flights.
Choose a card that best meets your travel habits depending on how often and in which cabin class you fly. According to NerdWallet, Alaska Airlines miles are best for business-class travel while Delta and United miles offer economy flights at discounted rates.
Travel perks
When considering credit cards with no annual fee, make sure that you fully comprehend all of their features and perks. These may include airport lounge access, free checked bags, hotel upgrades or gift cards and so forth. Depending on which card is chosen, these features could make the card worth its while for frequent travelers while an infrequent traveler might benefit more from a cash-back card.
There are various travel cards to choose from, each offering different value propositions. Some cards provide generous rewards rates and sign-up bonuses while others come with an annual fee but pay for themselves through benefits like trip cancellation insurance and lost luggage reimbursement. Many cards also allow you to transfer points between loyalty programs for enhanced value; plus some waive foreign transaction fees to make themselves more appealing for international travelers.
