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Getting the Most Out of Rewards Credit Cards: Choosing No-Annual-Fee Options

Rewards credit cards have become increasingly popular in recent years, and for good reason. Many credit cards offer a range of benefits that can make them worthwhile for consumers.

However, one of the major downsides of these cards can be the annual fees that they come with. In this article, we will look at the benefits of rewards credit cards, the drawbacks of annual fees, and the importance of no-annual-fee credit cards.

We will also discuss the factors that should be considered when choosing the best rewards credit cards.

Benefits of Rewards Credit Cards

The most obvious benefit of rewards credit cards is the rewards that they offer. These rewards can come in many different forms, such as cash back, points, or miles.

Cash back cards offer a percentage of your spending back as cash, while points and miles can be redeemed for a variety of rewards such as gift cards, merchandise, or travel. Another benefit of rewards credit cards is that they often come with additional perks beyond just the rewards.

For example, some cards offer travel insurance, free checked bags, or access to airport lounges. These perks can be especially valuable for frequent travelers.

Drawbacks of Annual Fees

One of the major drawbacks of rewards credit cards is the annual fee that many of them come with. These fees can range from around $50 to over $500 per year.

Although rewards credit cards can offer great benefits, the annual fee can eat away at these benefits and make the card not worth it in the long run.

Average Annual Fee of Credit Cards

According to a survey by CreditCards.com, the average annual fee for a rewards credit card in 2020 was $119. This is a significant cost that can add up over time, especially if you have multiple rewards credit cards with annual fees.

Importance of No-Annual-Fee Credit Cards

For those who are looking to avoid annual fees, there are plenty of good options available. No-annual-fee credit cards can still offer rewards and benefits without the added cost of an annual fee.

These cards can be a great choice for those who don’t spend a lot on their credit cards and aren’t looking for the most premium benefits.

Factors for Choosing the Best Rewards Credit Cards

When choosing a rewards credit card, there are several factors that should be considered. First, it’s important to choose a card that offers rewards that align with your spending habits.

For example, if you spend a lot on travel, a card that offers miles or travel rewards might be a good option. On the other hand, if you spend a lot on dining and entertainment, a card that offers cash back or points for these categories might be a better fit.

Another factor to consider is the ease of earning and redeeming rewards. Some credit cards have complicated rewards structures or restrictive redemption options, which can make it difficult to actually use the rewards that you earn.

A good rewards credit card should have simple earning and redemption options that are easy to understand and use.

Additional Benefits of Credit Cards

In addition to rewards and perks, many credit cards offer additional benefits such as purchase protection, extended warranties, and fraud protection. These benefits can provide valuable protection for your purchases and peace of mind when using your card.

In conclusion, rewards credit cards can offer many benefits, but the annual fees that they often come with can be a drawback. No-annual-fee credit cards can be a good alternative for those who want to avoid the added cost.

When choosing a rewards credit card, it’s important to consider factors such as rewards alignment, ease of earning and redeeming rewards, and additional benefits beyond just the rewards. By considering these factors, you can choose a rewards credit card that best fits your needs and spending habits.

Rewards credit cards can be a great way to earn cash back, points, miles, or other rewards on your everyday spending. However, many rewards credit cards come with annual fees that can eat away at the value of these rewards.

For those who want to avoid annual fees, there are many no-annual-fee rewards credit cards available that can still offer great benefits. In this article, we will look at some of the best rewards cards with no annual fee, broken down by categories such as families, travelers, high-interest debt, business owners, frequent diners, and online shoppers.

Families: Chase Freedom Unlimited

The Chase Freedom Unlimited card offers cashback rewards on everyday purchases such as groceries, gas, and dining. You can earn an unlimited 1.5% cash back on all purchases, with no minimum redemption amount required.

The card also offers a variety of redemption options, including statement credits, gift cards, or cash back deposited into your bank account. Additionally, the card comes with other benefits such as purchase protection and extended warranty coverage.

Travelers: Capital One VentureOne Rewards Credit Card

The Capital One VentureOne Rewards Credit Card offers miles for travel purchases such as airfare, hotels, and car rentals. You can earn 1.25 miles per dollar spent on all purchases, with no limit on the amount of miles you can earn.

Miles can be redeemed for a variety of travel-related purchases, such as flights, hotels, or rental cars. The card also offers travel insurance benefits such as travel accident insurance and auto rental collision damage waiver.

High-Interest Debt: Citi Double Cash Card

The Citi Double Cash Card offers cashback rewards on all purchases, with 1% cash back when you make a purchase and another 1% cash back when you pay for that purchase. This can be a great incentive for those who are working to pay down high-interest debt.

The card also offers a balance transfer offer, with a 0% APR for 18 months on balance transfers (balance transfer fee applies). Additionally, the card comes with Citi Entertainment benefits, such as presale tickets and exclusive experiences.

Business Owners: Ink Business Cash Credit Card

The Ink Business Cash Credit Card offers cashback rewards on specific categories that are relevant for many businesses, such as office supplies, internet, cable, and phone services. You can earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each account anniversary year.

You can also earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. The card also offers redemption options for cash back, gift cards, or travel rewards, and allows you to set spending limits for employee cards.

Frequent Diners: Capital One SavorOne Cash Rewards Credit Card

The Capital One SavorOne Cash Rewards Credit Card offers cashback rewards on dining, entertainment, and grocery purchases. You can earn 3% cash back on dining and entertainment purchases, 2% cash back at grocery stores, and 1% cash back on all other purchases.

The card also offers redemption options for cash back, statement credits, or gift cards. Additionally, the card comes with benefits such as extended warranty coverage and purchase protection.

Online Shoppers: Prime Visa

The Prime Visa card offers cashback rewards for purchases made at Amazon.com and Whole Foods Market. You can earn 5% cash back on purchases at both retailers, which can be a great incentive for those who do a lot of their shopping online.

The card also offers redemption options for cash back, travel rewards, or Amazon purchases. Additionally, the card comes with benefits such as travel accident insurance and lost luggage reimbursement.

In conclusion, there are many rewards credit cards available that do not come with annual fees, making it easier to earn rewards without the added cost. Whether you’re looking for cashback rewards, travel rewards, or other benefits, there is likely a no-annual-fee credit card that can fit your needs.

By doing your research and choosing the right card for your spending habits, you can maximize your rewards while avoiding unnecessary fees. In conclusion, no-annual-fee rewards credit cards can be a great way to earn rewards without the added cost.

By choosing a card that aligns with your spending habits and offers easy redemption options, you can maximize your rewards and avoid unnecessary fees. From cashback rewards to travel rewards and other benefits, there are many options available for families, travelers, business owners, frequent diners, and online shoppers.

It is important to do your research and compare different credit card options before choosing the card that best fits your needs. By making an informed decision, you can enjoy the benefits of rewards credit cards while avoiding the drawbacks of annual fees.

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