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Best credit cards with an annual fee of March 2024

It’s understandable if you’re initially put off by a credit card with an annual fee. Before you completely write them off though, consider this: the best perks and rewards programs are usually offered with annual-fee credit cards. And if you utilize the card and its perks enough, the annual fee is often easy to offset. View More

Most of the time, annual-fee-credit cards come with perks that far outweigh the cost of the card. Airport lounge access, TSA PreCheck® and Global Entry application reimbursement, mega welcome bonuses, and cell phone protection are just a few examples. On an ongoing basis, though, the rewards that these cards earn are usually far superior to no-annual-fee credit cards. And it’s those rewards that will help you offset the cost of card year after year.

Taking into consideration the bonuses, ongoing rewards, travel perks, and ease of offsetting the cost of the card, we’ve compiled what we think are the best credit cards for the annual fee. Keep in mind though, we’re only featuring cards with moderate annual fees here. For the true cream-of-the crop, be sure to check out our top picks for the best premium credit cards. View Less

author Jennifer Doss
Terms apply; see the online credit card application for full terms and conditions of offers and rewards.

20+ years

finding the best card for you

1,500+ cards

in our database

5,000+ cardholders

polled about their cards

243 reviews

from our experts

List of Winners

  • CardName – Best for No Foreign Transaction Fees
  • CardName – Best for Global Entry or TSA PreCheck® Reimbursement
  • CardName – Best for Grocery Purchases
  • CardName – Best for Dining Out
  • CardName – Best for Premium Travel Benefits
  • CardName – Best for Point Redemption Value
  • CardName – Best for Flight Discounts
  • CardName – Best for Hotel Stays
  • CardName – Best for Gas Purchases
  • CardName – Best for Fair Credit
  • CardName – Best for Cell Phone Insurance
  • CardName – Best for Small Business Purchases

At CardRatings.com we discuss the most up-to-date news and trends within the credit card space. Since we first pioneered the concept of online credit card reviews in 1998, our team of financial experts has provided comprehensive and unbiased credit card reviews for more than 175 cards, plus hundreds of additional resource articles to help educate everyday cardholders so they can feel more confident about their card choices. All our content is written and reviewed by industry experts. Though our content may occasionally contain references to products from our partners, we maintain strict editorial integrity and advertiser relationships and compensation never influences ratings, reviews or featured products. The difference between editorial content and advertising must always be clearly stated. Learn more.

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CardName discontinued 

EditorRating
 
foreign_fee AnnualFees
Why We Like It: For those who travel for business or pleasure and enjoy dining out, the benefits offered by the CardName far outweigh the annual fee of AnnualFees. Sapphire Preferred® is offering a bonus of 60,000 points, worth up to $750 in travel through the Chase Ultimate Rewards program, when you spend at least $4,000 in the first three months after the card is issued. Add to that perks such as no foreign transaction fees, auto rental collision damage waiver, trip cancellation/trip interruption insurance and zero liability protection.

Read our full CardName review.

Welcome Bonus
60,000 points Earn 60,000 Chase Ultimate Rewards points after spending $4,000 in the first three months.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Bonus: Earn 60,000 Chase Ultimate Rewards points after spending $4,000 in the first three months. That's worth $750 in travel through the Ultimate Rewards portal.

The Rewards: Earn five points per $1 on travel purchased through Ultimate Rewards; three points per $1 on dining, select streaming services and online grocery store purchases (excluding Target, Walmart and wholesale clubs); two points for every $1 spent on travel expenses; and one point for every $1 spent on all other purchases.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee? The welcome bonus easily covers the annual fee, but even if you don't achieve the bonus, you can easily cover the annual fee if you are someone who travels or dines out often. For example, spending $6,000 a year on dining out and travel ($500 a month) would net you 12,000 points. That alone would be worth $150 when redeemed for travel through the Chase Ultimate Rewards program.

Credit Needed: CreditScoreNeeded

PROS:

  • We really like the travel perks, such as no foreign transaction fees and trip cancellation and interruption insurance.
  • It isn't just that there are high reward rates, but there are no blackout dates, restrictions or expiration dates on rewards.
  • The points earned with this card are worth 25% more when redeemed for travel through the Chase Ultimate Rewards travel portal, meaning the bonus alone is worth $750 in travel.

CONS:

  • No introductory 0% APR balance transfer or purchase offer.
  • If you are not a frequent traveler there are other cards on the market with higher points earning potential.

Read our full CardName review.

Current Scores Past Scores
Overall Score 80.3 86.6
Rewards Program Satisfaction 7.8 8.6
Customer Service 8.0 8.7
Website/App Usability 8.3 8.8
Likelihood of Continuing to Use 8.4 8.7
Recommend to a Friend/Colleague 8.1 8.6

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

CardName discontinued 

Cardholder Favorite
EditorRating
 
foreign_fee AnnualFees
Why We Like It: A healthy welcome bonus combined with an enticing rewards program make the annual fee merely a blip on your fiscal radar screen. This card earns users 2X miles on every purchase made, making it a cinch to offset the annual fee, and in addition, cardholders are eligible for a reimbursement for a Global Entry or TSA PreCheck® application fee, a perk alone that's worth up to $100.

Read our full CardName review.

Welcome Bonus
75,000 miles Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within three months from account opening.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Bonus: Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within three months from account opening, equal to $750 in travel.

The Rewards: Earn 2X miles for every $1 spent with the card.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee? The reimbursement for a Global Entry or TSA PreCheck® application fee immediately covers the annual fee for one year, and the welcome bonus can be worth $750 through the Capital One Rewards program, covering several years of annual fees. Bonuses aside, the rewards program makes it easy to quickly cover the cost of the annual fee. At 2X miles earned on every purchase made you'll rack up enough miles to offset the fee in no time if you're using your card frequently.

Credit Needed: CreditScoreNeeded

PROS:

  • There is a lot of flexibility with their travel program, which these days, you need: no blackout dates or restrictions for redemption.
  • You can fly any airline, stay at any hotel, anytime, and transfer miles to several leading travel loyalty programs.
  • No foreign transaction fee.

CONS:

  • Earning 2X miles on every purchase is certainly easy to understand, however there are alternative travel rewards cards on the market that have higher points earning potential.
  • The current partner airlines with the Venture card are not the most common or frequently used for rewards travel so transferring points may not provide as much value as other card programs.
Current Scores Past Scores
Overall Score 83.3 76.0
Rewards Program Satisfaction 8.2 7.7
Customer Service 8.0 7.2
Website/App Usability 8.4 8.2
Likelihood of Continuing to Use 8.9 7.9
Recommend to a Friend/Colleague 8.5 7.2

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

CardName discontinued 

EditorRating
 
foreign_fee AnnualFees
Why We Like It: This cash back card not only offers a generous rewards program, but it's actually easy to use. The rewards categories don't rotate, making them simple to keep track of and take best advantage of. An easily-attainable welcome bonus offer gets the ball rolling but the 6% cash back on U.S. supermarket purchases (up to $6,000 annually) and on select U.S. streaming services builds your account in a hurry. American Express is a CardRatings advertiser.

Read our full CardName review.

Welcome Bonus
$250 statement credit Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first six months.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Bonus: Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first six months.

The Rewards: Earn 6% cash back at U.S. supermarkets (up to $6,000 per year, then 1%) and on select U.S. streaming subscriptions; 3% cash back at U.S. gas stations; and 1% cash back on other purchases.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee? With a cash back rate of 6%, grocery shopping at U.S. supermarkets with your card will easily offset your annual fee. Even spending just $150 a month on groceries (well-below most household averages) will reward you with enough to offset the annual fee and then some - $108.

Credit Needed: CreditScoreNeeded

PROS:

  • This card offers a whopping 6% cash back on all grocery purchases up to $6,000 per year. That works out to a maximum of $360 in cash back on groceries alone. You can also earn unlimited 3% cash back on transit and gas purchases at U.S. gas stations.
  • Global Assist Hotline. That is, you'll get concierge service, which can help you with issues like a lost passport or missing luggage.
  • The welcome bonus is a nice way to kick off card membership.

CONS:

  • This is a great card with outstanding benefits for those who spend a lot; however, if you don't spend a lot at U.S. supermarkets you may have a difficult time offsetting the annual fee.
  • This isn't the best card to travel abroad with as it charges a fee on foreign transactions.
Current Scores Past Scores
Overall Score 78.5 78.2
Rewards Program Satisfaction 7.6 7.8
Customer Service 7.7 8.0
Website/App Usability 8.1 7.7
Likelihood of Continuing to Use 8.3 8.2
Recommend to a Friend/Colleague 8.2 7.5

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

CardName discontinued 

Cardholder Favorite
EditorRating
 
foreign_fee AnnualFees
Why We Like It: This card is good for so much more than just travel thanks to bonus rewards earned in popular everyday categories like dining at restaurants and purchases at U.S. supermarkets.

Read our full CardName review.

Welcome Bonus
60,000 Membership Rewards points Earn 60,000 Membership Rewards points after you spend $6,000 on eligible purchases within your first six months as a cardholder.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Bonus: Earn 60,000 Membership Rewards points after you spend $6,000 on eligible purchases within your first six months as a cardholder.

The Rewards: You'll earn four times the Membership Rewards points at restaurants, plus takeout and delivery in the U.S.; four points at U.S. supermarkets (on up to $25,000 per year in purchases at supermarkets (then one point per $1); three times the Membership Rewards points on flights booked directly with airlines or on amextravel.com; and one point per $1 on your other purchases.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee?: Add your Gold Card to your Uber account and each month automatically get $10 in Uber Cash for Uber Eats orders or Uber rides in the U.S., totaling up to $120 per year. This alone gets you almost halfway there. Take advantage of up to $10 total monthly in statement credits when you use your card to pay for purchases at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shakre Shack locations (enrollment required). This can be an annual savings of up to $120. Plus, there's the generous welcome bonus offer, and with strong ongoing rewards, if you use this card regularly you'll easily earn enough to offset the cost of the card.

Credit Needed: CreditScoreNeeded

PROS:

  • This card gives you the flexibility to earn rewards with any airline, so you aren't restricted to earning bonus rewards with just one.
  • Earn up to $10 in statement credits monthly when you pay with your card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations (enrollment required).
  • This card does not charge foreign transaction fees so it's a good one to travel abroad with.

CONS:

  • Unlike typical credit cards, this card allows you to carry a balance for certain charges, but not all.
  • If you don't fly often, you might be better off with a card that rewards gas purchases or hotel stays instead of airline expenses.
Current Scores Past Scores
Overall Score 81.9 83.4
Rewards Program Satisfaction 8.0 8.4
Customer Service 8.4 8.4
Website/App Usability 8.2 8.3
Likelihood of Continuing to Use 8.6 8.4
Recommend to a Friend/Colleague 8.2 8.2

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

CardName discontinued 

Cardholder Favorite
EditorRating
 
foreign_fee AnnualFees
Why We Like It: This credit card comes with some premium travel benefits, without the annual fee you'd expect from many premium credit cards.

Read our full CardName review.

Welcome Bonus
75,000 miles Earn 75,000 bonus miles once you spend $4,000 on purchases within the first three months from account opening.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Bonus: Earn 75,000 bonus miles once you spend $4,000 on purchases within the first three months from account opening. Additionally, enjoy 10,000 bonus miles every year, starting on your first account anniversary.

The Rewards: Earn 10X miles on hotels and rental cars booked through Capital One Travel, 5X miles on flights booked through Capital One Travel, and 2X miles on all other purchases.

Annual Fee: AnnualFees

How do you Offset the Annual Fee? There are a number of perks that come with this card which allow cardholders to easily offset the cost of the card, including: $300 annual credit for bookings made through Capital One Travel; unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network; up to a $100 credit to cover your Global Entry or TSA PreCheck® application fee; and, when you pay your monthly wireless bill with your covered Capital One card, your cell phone is protected for the next calendar month. Furthermore, the welcome bonus, as well as the ongoing card anniversary bonus, go a long way in offsetting the cost of the card.

Credit Needed: CreditScoreNeeded

PROS:

  • This card offers free price drop protection, meaning, if you book a flight when Capital One recommends, and the price later drops, you'll get a partial refund. Additionally, if you find a better price, Capital One will match it. Just let them know within 24 hours of booking, and they will refund you the difference.
  • The annual card anniversary 10,000 mile bonus is a nice incentive to maintain card membership.
  • Cell phone protection isn't a common perk offered by credit cards, particularly travel credit cards. The fact that this card offers cell phone protection when you pay your monthly cell phone bill with the card is a nice incentive for cardholders.

CONS:

  • You'll need to make your bookings through the Capital One Travel portal to earn the annual travel credit, which might feel limiting for some cardholders.
  • This card was really designed with travelers in mind. If you don't travel often, you may have trouble offsetting the annual fee.
Current Scores Past Scores
Overall Score 80.2 71.9
Rewards Program Satisfaction 7.7 7.1
Customer Service 7.9 7.4
Website/App Usability 8.5 7.4
Likelihood of Continuing to Use 8.5 6.9
Recommend to a Friend/Colleague 8.2 7.2

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

CardName discontinued 

EditorRating
 
foreign_fee AnnualFees
Why We Like It: Yes, the annual fee is steep, but hear us out: there are a ton of benefits offered with this card that more than offset this. Plus, points are worth 50% more when redeemed for travel through Chase Ultimate Rewards, and if you have any other Chase Ultimate Rewards-earning cards, those points can be pooled under your Reserve® account, and therefore be worth 50% more as well. So in short, there's some serious reward potential offered with this card.

Read our full CardName review.

Welcome Bonus
60,000 points Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening, worth $900 toward travel when you redeem through Chase Ultimate Rewards.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Bonus: Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening, worth $900 toward travel when you redeem through Chase Ultimate Rewards.

The Rewards: Earn 5X total points on flights and 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards immediately after earning your $300 travel reimbursement annually. Earn 3X points on other travel (after the reimbursement) and dining and 1X point per dollar spent on all other purchases.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee? The $300 travel credit this card offers, access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass Select, up to a $100 application fee credit for Global Entry or TSA PreCheck, and one year complimentary Lyft Pink access (a $199 minimum value) more than offset the annual fee with ease. And that's not even taking the welcome bonus or 50% more value on points into consideration.

Credit Needed: CreditScoreNeeded

PROS:

  • There are so many. One of the biggest though is the fact that points are worth 50% more when redeemed for travel through the Chase Ultimate Rewards portal.
  • Enjoy a $300 travel credit, no foreign transaction fees, trip cancellation/interruption insurance, trip delay reimbursement, baggage delay insurance, lost luggage reimbursement, car rental insurance, and so many other valuable travel perks.
  • Lounge access and Global Entry or TSA PreCheck application reimbursement are huge, money-saving benefits.

CONS:

  • Of course, the annual fee. This card is designed with travelers in mind, so if you don't travel enough to use the numerous perks this card offers, you may have trouble offsetting its cost.
  • There is a $75 fee for authorized users, so if you plan to add additional users to your account, this is something to keep in mind.
Current Scores Past Scores
Overall Score 75.6 83.2
Rewards Program Satisfaction 7.5 8.2
Customer Service 7.6 8.3
Website/App Usability 7.7 8.3
Likelihood of Continuing to Use 8.1 8.7
Recommend to a Friend/Colleague 7.3 8.4

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

CardName discontinued 

EditorRating
 
foreign_fee AnnualFees
Why We Like It: For frequent flyers who make American Airlines their carrier of choice, this card offers the types of perks that make air travel much more pleasant. Citi is a CardRatings advertiser.

Read our full CardName review.

Welcome Bonus
50,000 miles Earn 50,000 American Airlines AAdvantage® bonus miles when you spend at least $2,500 in the first three months of card membership.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Bonus: Earn 50,000 American Airlines AAdvantage® bonus miles when you spend at least $2,500 in the first three months of card membership.

The Rewards: Earn two AAdvantage® bonus miles for every $1 spent at gas stations, restaurants and on eligible American Airlines purchases. You can redeem your miles for flights with American Airlines and American Eagle as well as with OneWorld partners such as British Airways, Japan Airlines, Qantas, airberlin and several others, or you can upgrade your ticket to the next cabin. But you have other redemption options, too. AAdvantage® bonus miles can also be redeemed for hotel rooms, rental cars, or to book a vacation through American Airlines Vacations.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee? For devotees of American Airlines, the annual fee can be offset easily in several ways, starting with the free checked bag for you and four traveling companions on the same reservation. Most airlines charge $30-$50 per checked bag, so on just one round-trip flight, this perk could save you as much as $500. Plus, if you spend more than $20,000 in a card membership year and renew your card, you earn a $125 American Airline flight discount, which is more than enough to offset the cost of the card.

Credit Needed: CreditScoreNeeded

PROS:

  • Your first checked bag is free on domestic American Airlines itineraries for you and up to four companions traveling with you on the same reservation.
  • This card gives you preferred boarding on flights and 25% savings on in-flight food and beverage purchases when you use your card on American Airlines flights.
  • You don't have to use your miles for trips. You can redeem them for magazines, newspapers, gift cards and identify theft protection – or donate your miles to a charity.
  • The annual fee is waived the first year.

CONS:

  • If you're looking for a travel card with a lot of flashy perks, like access to an airport lounge, this isn't it.
  • While your miles can be redeemed for a lot of things, such as gift cards and vacation packages, you can't redeem them for cash.
Current Scores Past Scores
Overall Score 79.8 82.9
Rewards Program Satisfaction 7.9 8.2
Customer Service 7.8 8.5
Website/App Usability 7.8 8.7
Likelihood of Continuing to Use 8.5 8.3
Recommend to a Friend/Colleague 8.3 8.1

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

CardName discontinued 

EditorRating
 
foreign_fee AnnualFees
Why We Like It: If Marriott Bonvoy properties are your hotels of choice when you travel, this card is well worth the annual fee. For starters, card membership grants you automatic Silver Elite Status in the Marriott Bonvoy loyalty program which earns you 10% bonus points on all Marriott Bonvoy property purchases, priority late checkout, mobile check-in and a dedicated reservation line and more. Information related to the Marriott Bonvoy Boundless® Credit Card has been collected independently by CardRatings and was neither reviewed nor provided by the card issuer

Read our full CardName review.

Limited Time Bonus
100,000 points For a limited time, earn 100,000 points after spending $3,000 on purchases in your first three months from account opening.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Welcome Offer: For a limited time, earn 100,000 points after spending $3,000 on purchases in your first three months from account opening.

The Rewards: Earn up to 17X total points for every dollar spent at over 7,000 participating Marriott Bonvoy hotels. Earn 6X points with the credit card, up to 10X points from Marriott for being a Marriott Bonvoy member, and 1X point from Marriott with Silver Elite Status. Additionally, earn 3X total points per $1 spent on up to $6,000 in combined purchases at gas stations, restaurants and grocery stores each year and 2X points on all other purchases.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee? The Marriott Bonvoy Boundless card takes care of offsetting the annual fee in a clean, simple fashion. Each year, on the anniversary of your card membership, you receive a free one-night stay (valued up to 35,000 points) at any of more than 7,000 participating Marriott Bonvoy properties. As for the annual fee for the first year, you can easily offset that with bonus offer alone.

Credit Needed: CreditScoreNeeded

PROS:

  • Once you redeem your points for hotel rooms, you have a lot of places you can stay - over 7,000 Marriott and The Ritz-Carlton locations, as well as Starwood-branded hotels around the world. That includes Four Points by Sheraton, Sheraton hotels, W Hotels and Westin hotels.
  • If your common carrier travel is delayed more than 12 hours or requires an overnight stay, you and your family are covered for unreimbursed expenses, such as meals and lodging, up to $500 per ticket.
  • Rest easy at a Marriott hotel if something happens to your luggage. If you or an immediate family member check or carry on luggage that is damaged or lost by the carrier, you’re covered up to $3,000 per passenger.

CONS:

  • It kind of goes without saying, but if your preference hotel is outside the Bonvoy group, you'd probably be better off with a different card.
  • If your primary travel concern is saving money on hotel stays, this is a good card. However, if you want to earn bonus rewards on all travel purchases such as flights or car rentals, you might be better off with a more general travel rewards card.
Current Scores Past Scores
Overall Score 82.2 81.4
Rewards Program Satisfaction 8.3 8.0
Customer Service 7.8 8.5
Website/App Usability 8.2 8.1
Likelihood of Continuing to Use 8.8 8.4
Recommend to a Friend/Colleague 8.2 8.0

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

CardName discontinued 

EditorRating
 
foreign_fee AnnualFees
Why We Like It: From hotel stays to everyday purchases this card rewards you generously, and the level of rewards easily helps to offset its manageable annual fee.

Read our full CardName review.

Welcome Bonus
60,000 points Earn 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first three months of account opening, worth $600 in gift cards or travel rewards when redeemed at thankyou.com. Plus, for a limited time, earn 10 points per $1 on hotels, car rentals and attractions (excluding air travel) booked via the Citi Travel℠ portal through June 30, 2024.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Bonus: Earn 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first three months of account opening, worth $600 in gift cards or travel rewards when redeemed at thankyou.com. Plus, for a limited time, earn 10 points per $1 on hotels, car rentals and attractions (excluding air travel) booked via the Citi Travel℠ portal through June 30, 2024.

The Rewards: Earn three points per $1 spent at gas stations, air travel and hotels; three points per $1 spent at restaurants and supermarkets; and one point per $1 spent on all other purchases.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee? The welcome bonus alone easily offsets years worth of annual fees, but beyond that, enjoy $100 off a single hotel stay of $500 or more (excluding taxes and fees) through thankyou.com once per calendar year. If you frequently stay at hotels, this is a nice perk that offsets the cost of the card.

Credit Needed: CreditScoreNeeded

PROS:

  • Planning a trip abroad? Feel free to bring this card along as it does not charge fees on foreign transactions.
  • ThankYou® Points can be transferred to participating airline loyalty programs, or redeemed for gift cards including for department and home stores, restaurants, and more. Or, use ThankYou® Points to shop online at Amazon.com or BestBuy.com.
  • Enjoy $100 off a single hotel stay of $500 or more (excluding taxes and fees) through thankyou.com once per calendar year.

CONS:

  • If you're after cash-back rewards, you might not find the redemption options as lucrative as some other cards.
  • Though the hotel savings benefit is a nice perk, if you don't frequently stay in hotels, you might have trouble offsetting the cost of the card.
Current Scores Past Scores
Overall Score 78.1 84.5
Rewards Program Satisfaction 7.6 8.3
Customer Service 7.9 8.5
Website/App Usability 7.9 8.5
Likelihood of Continuing to Use 8.2 8.6
Recommend to a Friend/Colleague 8.0 8.5

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

CardName discontinued 

EditorRating
 
foreign_fee AnnualFees
Why We Like It: This is a cash-back card for those thinking they probably aren't eligible for one. This card is available to people with average/fair/limited credit, which is rare for a good cash-back card. It offers a rewards system with just one tier (1.5% cash back on every purchase) which makes earning cash back super easy.

Read our full CardName review.

Welcome Bonus
NA
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Bonus: There is no traditional bonus offered with this card, however, you can get access to a higher line of credit in as little as six months, which is a nice perk for those working on their credit.

The Rewards: Earn 1.5 % cash back on every purchase, every day.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee? With the annual fee a modest AnnualFees, it doesn't take much spending to offset. In fact, at a cash back rate of 1.5%, using the CardName for just $250 in spending a month will earn $45 in cash back. Considering the fact that this card is designed for people with lower credit, AnnualFees is a small sacrifice to pay in the road towards a better credit score - especially when it can so easily be offset by making just $3,000 in purchases a year.

Credit Needed: CreditScoreNeeded

PROS:

  • You can feel particularly good about making expensive purchases on things that might break. You'll receive extended warranty protection which doubles the time of the original U.S. manufacturer's warranty (up to one year) on eligible warranties of three years or less.
  • The card comes with some helpful travel protection benefits such as travel accident insurance, roadside assistance, and auto rental collision damage waiver.
  • Many rewards cards require excellent credit, but you could qualify for this card even if your credit isn't perfect, and enjoy some great rewards for a relatively low annual fee.

CONS:

  • The rewards offered with this card are good for someone with a lower credit score, but if you have very good or excellent credit, you'll likely want to consider another option.
  • There is no welcome bonus to entice new cardholders.
Current Scores Past Scores
Overall Score 82.9 82.8
Rewards Program Satisfaction 8.2 8.2
Customer Service 8.1 8.5
Website/App Usability 8.5 8.5
Likelihood of Continuing to Use 8.7 8.6
Recommend to a Friend/Colleague 8.4 8.1

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

CardName discontinued 

EditorRating
 
foreign_fee AnnualFees
Why We Like It: It would be easy just to begin and end with the eye-popping 100,000 points this card offers as a welcome bonus (earned once spending $8,000 in the first three months of card membership), but the card also offers a plethora of perks that matter to people in charge of a business's operations and bottom line.

Read our full CardName review.

Welcome Bonus
100,000 points Enjoy 100,000 bonus points, worth $1,250 when redeemed for travel through Chase Ultimate Rewards, when you spend at least $8,000 in the first three months after the card is issued.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

The Bonus: Enjoy 100,000 bonus points, worth $1,250 when redeemed for travel through Chase Ultimate Rewards, when you spend at least $8,000 in the first three months after the card is issued.

The Rewards: Earn three points per dollar on the first $150,000 spent on travel and select business categories each account anniversary year, and one point per dollar on all other purchases.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee? The whopping welcome bonus of 100,000 points, with a value of $1,250 when redeemed for travel through the Chase Ultimate Rewards program, certainly offsets the annual fee for several years, and then some. Beyond that, it would take just modest spending to cover the annual fee each year. For example, just $3,000 in spending on travel, shipping or social media/search engine advertising would net a redemption value of $112 when redeemed for travel through Chase Ultimate Rewards. This doesn't even take into consideration money that can be saved by the waiving of foreign transaction fees, auto rental collision insurance, cell phone insurance, etc.

Credit Needed: CreditScoreNeeded

PROS:

  • We really like the cell phone insurance for the primary cardholder and employee phones on the same account.
  • With the state of travel these days, you'll likely appreciate the trip cancellation and trip interruption insurance and trip delay reimbursement.
  • This is a business credit card that gets that it's a business credit card: Employee cards can be distributed at no additional cost with the option to set individual spending limits, helping you to earn rewards even faster and keep track of your business' spending.

CONS:

  • If the bonus cash-back categories don't really fit your business needs, or you spend above the $150k threshold annually, you may want to look elsewhere for maximum cash back.
  • This isn't a credit card that you'd want to transfer a balance to. The balance transfer fee is 5%, and if transferring debt to a low interest card is your goal, you could likely find something better.
Current Scores Past Scores
Overall Score 80.0 74.3
Rewards Program Satisfaction 7.8 7.4
Customer Service 8.0 7.6
Website/App Usability 8.3 7.3
Likelihood of Continuing to Use 7.9 7.6
Recommend to a Friend/Colleague 8.3 7.3

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

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EditorRating
 
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Why We Like It: This card rewards you in the two categories where your business spends the most each month, so you can rest easy knowing you're getting the most of the rewards program with little effort on your part.

Read our full CardName review.

Welcome Bonus
70,000 Membership Rewards points Earn 70,000 Membership Rewards points after you spend $10,000 on eligible purchases within the first three months of card membership.
Annual Fee
AnnualFees
Regular APR
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Credit Score
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The Welcome Offer: Earn 70,000 Membership Rewards points after you spend $10,000 on eligible purchases within the first three months of card membership.

The Rewards: Earn 4x Membership Rewards points on the two categories where your business spends the most (each billing cycle) from six eligible categories. While your top two categories may change, you will earn 4x points on the first $150,000 in combined purchases from these categories each calendar year (then 1x thereafter). Only the top two categories each billing cycle will count towards the $150,000 cap. Additionally, earn 3x Membership Rewards points on flights and prepaid hotels booked on amextravel.com using your Business Gold card. Plus, get 25% points back after you use points for all or part of an eligible flight booked with Amex Travel, up to 250,000 points back per calendar year.

The Annual Fee: AnnualFees

How do you Offset the Annual Fee? If you travel often the 25% points back on eligible flights booked with Amex Travel feature is huge. This offer is good for up to 250,000 points back per calendar year. Depending on flight location and dates, this could be enough to pay for several flights, a value far exceeding the cost of the annual fee.

Credit Needed: CreditScoreNeeded

PROS:

  • This card doesn't charge any foreign transaction fees so it's good for international travel.
  • You can combine rewards you earn with this card with Membership Rewards you earn with a personal card.
  • Earning four points in the categories where you spend most is huge. This gives you the opportunity for some serious point earning potential.

CONS:

  • Don't overlook the annual fee. Ensure the rewards and other perks and features will allow you to more than offset that fee.
  • There is a cap on the amount of bonus rewards you can earn. It's still pretty high, but if your business spends far more than $150,000 in certain categories each year, you might want to consider another option.
Current Scores Past Scores
Overall Score 79.9 80.7
Rewards Program Satisfaction 7.9 8.0
Customer Service 7.9 8.2
Website/App Usability 8.3 8.0
Likelihood of Continuing to Use 8.1 8.2
Recommend to a Friend/Colleague 8.1 8.0

*Scores above reflect the results of surveys with actual cardholders. Full methodology below.

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FAQ

If you want to earn rewards on every purchase you make, the Capital One Venture Rewards Credit Card is a clear winner. This card offers a number of valuable perks, a ton of flexibility and a generous welcome bonus. It earns two miles on every purchase made, and there are a number of convenient redemption offers, including the ability to transfer miles to several leading travel loyalty programs. If you don't want to think about how, when, or where you earn rewards, this is a hard card to beat.

You may spend heavily in certain categories though, or maybe you don't mind keeping up with rotating rewards. No two credit card users are the exact same, so it's not so easy to declare one winner overall.

When it comes to deciding what the best credit card for the annual fee is, it's important to consider which rewards make the most sense for you and your spending habits, and evaluate whether or not you'll actually use your card and any added benefits it offers. If you're not utilizing a card's perks, it'll be hard to offset the annual fee. So don't choose a card just because the benefits sound great. Make sure they're perks you'll actually use.

A credit card annual fee is the fee charged by a credit card company simply for the privilege of membership. The amount varies broadly depending on the card. Some companies have no fee at all. Others will waive the fee for the first year as part of an introductory offer.

The short answer is: Issuing credit cards is a business, and financial institutions have determined that it's smart business to attach an annual fee to some credit cards in order to make a profit.

A longer answer: Credit card companies make money off merchant fees, that is , charging sellers a little piece of the action when consumers pay for items with their credit card. They also, of course, make money off of interest and fees that they charge.

If you're a consumer who uses your credit card all the time and pays in full, on time, and you easily make back that annual fee, you're a profitable customer, due to all the merchant fees the credit card is collecting when you use your credit card. On the other hand, think about the cardholder who carries a balance and pays interest to the credit card company - and pays that annual fee - that person is arguably a real catch for the credit card company.

The average annual fee for a credit card is $95. Many popular "middle-of-the-road" cards charge around $95-$99 for card membership. Premium credit cards usually charge double this, or more, and of course, there are many credit cards with no annual fees at all.

For cards with an annual fee from the time it is issued, the fee is most often applied to your account during the first billing cycle. If the fee is waived for the first year, it will be applied to your account in the first billing cycle following your card member anniversary.

No, all credit cards don't have annual fees, so if you don't want to pay an annual fee, you can definitely find a credit card without an annual fee.

That said, don't write off a credit card with an annual fee. There's generally a very good reason for an annual fee, and, in fact, many cardholders actually seek out credit cards with annual fees, crazy as that may sound to somebody who doesn't think a lot about credit cards. An annual fee is often a sign that you've found a credit card with a lot of perks, rewards and amenities.

It's, of course, wonderful when you can find a really good credit card that has a robust rewards program and no annual fee, but a credit card with an annual fee is usually a signal that you're dealing with an excellent credit card that you should pay some attention to. Even better, many times, those annual fees are waived for the first year, bringing you even more savings.

In other words, the best credit cards often have annual fees. A good rule of thumb - the more you pay for an annual fee, the more you can potentially save and receive in rewards and perks. It really all comes down to a person's spending habits and expectations. If you get a credit card with a high annual fee, but you rarely use the credit card, and you don't take advantage of the rewards, then obviously it's not a good credit card - for you. For somebody else, it may be a fantastic credit card.

If you plan to regularly use a card and take advantage of any added benefits offered, then yes, credit cards with annual fees are usually worth it.

Evaluate the perks and bonuses of the card you are considering applying for and decide if you will be using the card often enough to take full advantage. If you expect to use the card frequently enough to reap the benefits, such as the welcome bonus, then the card is likely a good addition to your wallet. On the other hand, if you don't expect to use the card very often, the fee could quickly become a waste of your financial resources.

Infographic describing situations when credit cards with annual fees might be worth it

From the list on this page, the Capital One QuicksilverOne Cash Rewards Credit Card has the lowest annual fee, but that's a credit card for people with only fair credit. It's a good credit card if your credit isn't good, but otherwise, you likely wouldn't want to get this card.

If you're interested in looking for a credit card with a low annual fee, you can find many with a $95 annual fee (that's generally at the low end of the annual fee spectrum). Those cards tend to have excellent rewards - though they aren't quite the cream of the crop as some of the cards with, say, a $300 or higher annual fee. When you find credit cards with an annual fee of several hundred dollars, you know there's a good chance, if you use the perks of the card a lot, you might save hundreds of dollars more.

The best thing, though, is to not over-generalize and look at each credit card on its merits and compare the rewards and think about how each card fits in with your spending lifestyle. A credit card with a steep fee may not bring you as much financial satisfaction as a credit card with a $95 annual fee, and in some cases, a credit card with no annual fee may the better way to go.

Everybody is different in terms of how they spend money, and so it's best to comparison shop before grabbing the first card you see.

Another thing to keep in mind is that welcome bonuses also often effectively wipe out the annual fee in the beginning. For instance, the Chase Sapphire Preferred® Card gives you 60,000 bonus points after spending $4,000 in the first three months. That's worth $750 in travel through Ultimate Rewards, and so right away, that annual fee is a distant memory.

Or consider the Capital One Venture Rewards Credit Card. New cardholders can earn a massive welcome bonus which easily offsets the annual fee, or if nothing else, the Global Entry or TSA PreCheck® application fee reimbursement immediately covers the annual fee for one year.

Basically, as long as you use the credit card frequently, you should get more than enough rewards to completely offset the annual fee fee pretty quickly.

If you have a credit card with an annual fee and you aren't utilizing its benefits enough to offset its cost, instead of just canceling your account altogether, you might want to consider making a credit card product change instead. A product change, in short, is simply moving your account from one credit card to another offered by the same company or bank. To make a product change, no hard credit pull is needed and you'll maintain your credit history, and then of course you'll lower your costs.

Take the CardName for example. Perhaps you love earning rewards on every purchase you make, but aren't using the card quite enough to justify its annual cost. Switching to the no-annual-fee CardName will grant you some of the same great benefits, like the flexibility to redeem miles for any travel purchase, and you'll still earn rewards on all purchases that you make (albeit at a lower rate of 1.25X miles per dollar spent).

Switching from a card with a high annual fee to one with a lower annual fee is also a possibility. The Chase Sapphire cards are a good example of this. Maybe you used to travel all the time making the numerous benefits of the CardName card worth its high annual fee, but now you don't travel quite as often. If you want something that offers similar rewards but a lower annual fee you might be happy with the CardName. It still earns rewards on travel and dining purchases, but its annual fee is a fraction of its premium cousin.

If your mind is set on cancelling your accounts, be sure to check out our guide for how to cancel a credit card for tips and further advice.

author
Jennifer Doss
CardRatings Executive Editor

Jennifer Doss is a credit card analyst and the executive editor of CardRatings.com. She has worked as both a print and online journalist and has over a decade of experience in the media industry. Her published work has covered a broad range of topics, from finance and technology to travel and dining. Through extensive travel experiences and her personal interest...Read more


Survey Methodology: CardRatings commissioned Op4G in September 2023 to conduct surveys among 1,869 cardholders nationwide. CardRatings website analytics from Jan. 1, 2023-Aug. 31, 2023 were used to determine a selection of the most popular cards and additional cards were included to add survey breadth. Responses to each of nine questions were given on a scale of 1-10 and respondents’ scores were then averaged under broad topics. To determine the overall score, responses from questions 1-8 were summed and the answer to “How likely are you to recommend this card to a friend, coworker or family member?” was double weighted. “Current Scores” reflect scores from the most recent survey (2023); “Past Scores” reflect scores from the 2022 survey.

Ranking Methodology: CardRatings experts review the fine print, details, perks, rewards and features of hundreds of cards and compare them side-by-side with similar cards. A card that makes an excellent balance transfer card may not make a great cash-back rewards card even though it offers those rewards. While the Best of the Year list is announced annually, that list – and all other “best of” lists on CardRatings – are regularly reviewed and updated as issuers change the terms and features of each card often.

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For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

Disclaimer:

The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.

This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.