Avoiding credit card fees whenever you can is always a smart idea. Luckily, there are a lot of great cards on the market these days that waive their annual fees for the first year you have your account open.
Not sure which one is best for you? Take a look at the Nerds’ top picks below:
Best overall: Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card has a slight edge over the other cards that waive their annual fees for the first year because of its powerful combination of a high signup bonus and stellar rewards earning power. Every time you use the card, you’ll be getting 2 points per dollar spent on dining in restaurants and travel and 1 point per dollar spent on all other purchases.
Generally, Sapphire Preferred points are worth one cent apiece. However, they’re worth 25% more when redeemed for travel through Chase Ultimate Rewards, which drives the value of each point up to 1.25 cents. Plus, you’ll also have the option to transfer your points at a 1:1 ratio to participating frequent traveler programs. Not too shabby!
And don’t forget about that sky-high signup bonus: Earn 40,000 bonus points after you spend $3,000 in the first 3 months. Assuming you redeem through Chase Ultimate rewards, that’s $500 toward your next vacation.
Also, the Chase Sapphire Preferred® Card is a good choice for international travelers since it charges no foreign transaction fee and comes chip-enabled. This makes overseas swiping convenient and inexpensive.
Remember, there’s an Introductory Annual Fee of $0 the first year, then $95. But if you spend a lot on dining and travel, it’s probably a worthwhile expense when you have to start paying it.
Best for budget travelers: Barclaycard Arrival Plus™ World Elite MasterCard®
If you’re not skilled at using frequent flyer programs to squeeze a lot of value out of credit card rewards points, the Barclaycard Arrival Plus™ World Elite MasterCard® is probably the right option for you. With it, you’ll earn 2 miles for every dollar you spend. Since each mile is worth $.01, you’re earning a rewards rate of 2%. But you’ll also get 10% of your miles back every time you redeem for travel, which effectively drives the rewards rate up to 2.2%.
One of the best things about this card is its flexibility when it comes time to redeem. You simply book your travel however you normally would with the card, then pay yourself back in the form of a statement credit with your miles. This means you can shop for the best deal with any airline or hotel chain and still use your rewards.
Plus, if you’re dreaming of an overseas getaway, the Barclaycard Arrival Plus™ World Elite MasterCard® has you covered. It charges no foreign transaction fee and comes chip-enabled with PIN capability.
Like the Chase Sapphire Preferred® Card, the Barclaycard Arrival Plus™ World Elite MasterCard® comes with a hefty signup bonus: Earn 40,000 bonus miles when you spend $3,000 or more on purchases in the first 90 days from account opening. Its annual fee is $89 - Waived first year, of course. All in all, it’s a great travel card to consider.
Best for hotels: Starwood Preferred Guest® Credit Card from American Express
If you stay in hotels frequently, adding the Starwood Preferred Guest® Credit Card from American Express to your wallet is something to consider. With it, you’ll earn up to 5 Starpoints per dollar spent at Starwood hotels and resorts and one Starpoint per dollar spent on all other purchases. When redeemed at hotels, the Nerds value Starpoints at a whopping 2.3 cents apiece.
However, using your Starpoints for hotel stays isn’t your only option. You can also use the “nights and flights” option to get airline miles and a few free nights in a hotel, or transfer your Starpoints to participating frequent traveler programs. The list of frequent traveler programs you can move your Starpoints to is impressive, so be sure to check it out.
The Starwood Preferred Guest® Credit Card from American Express comes with an exciting signup bonus: Earn up to 25,000 bonus points: 10,000 after your first purchase and another 15,000 after you spend $5,000 within the first 6 months of Cardmembership. There’s a $0 introductory annual fee for the first year, then $65. But keep in mind that it does charge a foreign transaction fee of 2.7%. If you travel abroad a lot, you’ll want to keep another card hand to avoid this charge.
Best for people who spend a lot on gas: Wells Fargo Propel 365 American Express
So far, we’ve only discussed credit cards that are good for people who travel frequently. But if most of your transit takes place behind the wheel, the Wells Fargo Propel 365 American Express is a great choice.
With this card, you’ll earn 3 points per dollar spent at gas stations, 2 points per dollar spent on dining out, and 1 point per dollar spend on all other purchases. Each point is worth $.01, and there’s no limit to the points you can earn. Plus, if you’re a Wells Fargo banking customer, you could also score an additional points bonus of 10%, 25% or 50%, depending on the type of account you have and your total assets.
When it comes time to redeem, you can cash in your points for travel, merchandise, gift cards, or cash back. No matter which option you choose, your points will hold their value; this adds a layer of flexibility to this card that many others lack.
The Wells Fargo Propel 365 American Express will get you started with a signup bonus: 20,000 points when you spend $3,000 in net purchases in the first 3 months. Its annual fee is waived the first year and 45 every year thereafter, and it charges no foreign transaction fee. If you frequently make purchases online from overseas retailers, this is something to consider.
A few other options
If none of the cards described above seem like a good fit, there are several other options out there that waive their annual fees for the first year. Here are a few to check out:
- Wells Fargo Propel World American Express
- United MileagePlus® Explorer Card
- Citi ThankYou® Premier Card
- Citi® / AAdvantage® Platinum Select® MasterCard®
- U.S. Bank FlexPerks® Travel Rewards Visa Signature® card
Happy swiping!
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The post Best Credit Cards That Waive Annual Fees for the First Year appeared first on NerdWallet Credit Card Blog.
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