You Can Earn Great Credit Card Rewards Without Paying an Annual Fee. Here’s How

After reviewing hundreds of cards as a credit card editor, I know that you don’t need to pay an annual fee to get a great credit card.
If you find a no-annual-fee credit card with a rewards structure that pairs nicely with your spending habits, and you keep up with your monthly bill, you can get more long-term value than you might think.
An annual fee doesn’t always mean the card offers enough value to make it a good fit for you. There are plenty of inexpensive cards to choose from.
What is an annual fee?
Some issuers charge a recurring annual fee for using a particular credit card. Annual fees can range from $50 for a basic rewards card to over $600 for premium cards with luxury perks. Credit cards with steep annual fees generally offer lucrative rewards and perks, including travel credits, airport lounge access, travel protections and better redemption options. However, many credit cards still offer rewards and perks without charging an annual fee.
How to choose the best no-annual-fee credit card
Before you apply for a credit card, consider what you want out of your card. Start by comparing your goals to card features: A rewards credit card can help you get steep discounts on travel while a cash-back card can put some money back in your pocket for general spending.
You’ll want to choose a credit card that rewards you for how you spend already — you don’t want to alter your spending habits to fit a credit card.
For travelers, if you have a specific trip in mind, research which airlines fly to that destination and check to see which type of points you can use to fly that airline. From there, you can pick a credit card that will help you earn those types of points.
Finding a no-annual-fee credit card with a welcome bonus is a great way to earn a higher return on your spending, but be sure you can earn the bonus without spending on unnecessary purchases. A great way to earn a welcome bonus is by applying for a new card right before a large planned purchase — like a tuition payment or kitchen remodel. That way, you can easily meet a welcome offer for money you were already planning to spend.
Is a credit card with an annual fee better?
While rewards credit cards without an annual fee offer a guaranteed return on your spending as long as you use the card responsibly, you may be able to earn more lucrative rewards with a card that charges an annual fee.
However, if you don’t regularly use the benefits and perks (like TSA PreCheck or Global Entry credits) enough to justify the annual fee, you’re likely better off sticking with no-annual-fee card.
What experts are saying about no-annual-fee credit cards
Annual fees usually equate to better card perks and higher rewards, but that doesn’t mean you need to pay one to get a good credit card. Credit expert Julia Menez notes that it’s important to make sure an annual fee fits into your budget.