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

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^[1]. Most of our favorite cards^[2] come with many benefits that provide value well beyond the cost of their annual fees, so we consider them well worth paying^[3].

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^[4] 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^[5] 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^[6].

To maximize your cash-back rewards, try having one card with a flat earning rate^[7], one with consistent bonus categories^[8] and one with rotating categories.

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

• OnePay CashRewards Card^[9]: Earn an unlimited 5% cash back on Walmart purchases (online or in store) as a Walmart+ member^[10] or 3% for non-members. Plus, earn an unlimited 1.5% cash back on all other purchases. Even better, you’ll enjoy no foreign transaction fees^[11] on purchases outside the U.S.
• Citi Double Cash® Card^[12] (see rates and fees^[13]): Earn 2% back on all purchases (1% when you buy and 1% when you pay your bill).
• Capital One Savor Cash Rewards Credit Card^[14]: Earn 5% back on hotels, vacation rentals rental cars booked through Capital One’s travel booking site; 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®^[15] (see rates and fees^[16]): Earn 5% back on up to the first $1,500 spent on rotating categories^[17] each quarter (activation required), 5% back on travel booked through Chase Travel℠^[18], 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 charge an annual fee, so check the card’s fine print before applying.

Related: Best cash-back credit cards^[19]

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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^[22] and hotel^[23] cobranded cards that don’t charge annual fees won’t come with many perks.

Some no-annual-fee hotel cards offer automatic elite status^[24] with on-property benefits; these cards are best for newer travelers or those who aren’t loyal to one particular hotel chain.

The no-annual-fee Hilton Honors American Express Card^[25] (see rates and fees^[26]), for example, comes with automatic Hilton Silver elite status^[27], which allows you to take advantage of the program’s fifth-night-free benefit^[28].

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^[29] (see rates and fees^[30]) offers a 25% discount as a statement credit for inflight food, beverages and Wi-Fi. Plus, the United Gateway offers two free checked bags^[31] after you spend $10,000 or more on your card in a year.

Transferable rewards cards

While not very common, some no-annual-fee cards earn transferable rewards^[32]. The Blue Business® Plus Credit Card from American Express^[33], for example, has no annual fee (see rates and fees^[34]) and earns Membership Rewards^[35] points that you can transfer to any of Amex’s 20 hotel and airline partners^[36].

If you’re worried about qualifying for a business card^[37], it’s a lot easier than you might think. Even a simple side hustle like dog walking is enough to get a card^[38] like the Blue Business Plus.

There’s also the aforementioned Citi Double Cash^[39], which earns 2% back (1% when you buy and 1% when you pay) in the form of Citi ThankYou points^[40]. These points can now be transferred^[41] to Citi’s travel partners^[42], albeit at a reduced ratio.

You can also take advantage of the ultimate no-annual-fee rewards duo: the Capital One VentureOne Rewards Credit Card^[43] and the Capital One Savor Cash Rewards^[44].

Alone, the VentureOne earns 1.25 transferable Capital One miles^[45] per dollar spent. Even though the Savor is a cash-back card, holding both allows you to combine your rewards^[46] 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^[47].

Related: Better together: The ultimate guide to the best credit card combinations^[48]

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.

Related: 7 reasons you should get (and keep) a no-annual-fee credit card^[49]

For rates and fees of the Hilton Honors Amex, click here^[50].
For rates and fees of the Amex Blue Business Plus, click here^[51].