The 8 best no-fee credit cards to open in 2019

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The 8 best no-fee credit cards to open in 2019

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  • Depending on the rewards, perks, and benefits you'll get, it can be worth paying an annual fee for a credit card.
  • However, there are still great and rewarding no-annual-fee credit cards worth considering.
  • There are co-branded airline cards, cash-back options, and flexible rewards points-earning cards.
  • Here are a few of the best no-fee credit cards of 2019, including our top choice: the new Wells Fargo Propel American Express® card.

Many people feel that paying an annual fee for a credit card is insane. Why should you pay to spend money?

I'll confess that I used to be in this camp. However, I've learned that, when a credit card offers the right mix of benefits, rewards, and perks, it can absolutely be worth paying a fee - that's because you'll get way more value from the card than you'll spend toward the fee. For example, I pay a total of $1,000 each year for two premium credit cards, but I get way more than that back.

However, there are still good reasons to go for a no-fee card, including cash-flow concerns, and to accompany a fee-card. With that in mind, here are some of the best available no-annual-fee cards.

Keep in mind that we're focusing on the rewards and perks that make these cards great options, not things like interest rates and late fees, which can far outweigh the value of any rewards.

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When you're working to earn credit card rewards, it's important to practice financial discipline, like paying your balances off in full each month, making payments on time, and not spending more than you can afford to pay back. Basically, treat your credit card like a debit card.

1. Wells Fargo Propel American Express Card

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Welcome offer: 30,000 points, worth $300 (after spending $3,000 in the first three months)

This new card from Wells Fargo has one of the more attractive rewards programs you'll find from a no-annual-fee card - at least, if you don't want to dive into the complicated world of multiple rewards programs and complex redemptions. The new Propel card is actually a re-launch of an old product - Wells Fargo stopped accepting applications for the old card back in February, before announcing the new product and reopening applications this month.

The card earns 3x points on all travel, dining, and streaming services (and 1x point on everything else). If that sounds familiar, it's because it's almost the same as the popular Chase Sapphire Reserve.

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There are some key differences between the cards. The Propel lets you redeem points for 1¢ each towards cash back, merchandise, travel, or more, while the Sapphire Reserve offers a range of more valuable redemption options - it's easy to get at least 50% more value for Chase points. Plus, the Sapphire Reserve offers a number of premium perks that the Propel doesn't, like airport lounge access, a $300 annual travel credit travel delay insurance, and more.

Of course, the Sapphire Reserve also comes with a $450 annual fee, while the Wells Fargo Propel doesn't have a fee. Between the new member offer, and the solid earning rate on popular spend categories, the Propel makes a decent option for those who don't travel often, or who aren't comfortable floating a large annual fee.

Click here to learn more about the Wells Fargo Propel card from Business Insider's partner: The Points Guy

2. Blue Cash Everyday® Card from American Express

amex blue cash

Welcome offer: $150 statement credit (after spending $1,000 in the first three months)

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The Blue Cash Everyday is a cash-back card, earning 3% cash back at US supermarkets on up to $6,000 each year - and 1% after that - 2% back at US gas stations and select department stores, and 1% cash back on everything else.

There's also a "Preferred" version of the Blue Cash Everyday - the Blue Cash Preferred® Card from American Express earns a bigger 6% back on the first $6,000 spent at US supermarkets (and 1% after), 3% back at US gas stations and some US department stores, and 1% cash back on everything else. The higher earning rate on the Preferred makes it worth paying the annual fee - however, the Blue Cash Everyday is still a great option if you're opposed to that.

If you're looking to make a major purchase - like an appliance or an engagement ring - and pay it off over time, you can take advantage of the 0% intro APR on purchases and balance transfers for the first 15 months (after that, it reverts to a variable 14.74-25.74% APR). You'll earn cash back on the purchase, which you can put right towards paying it off.

Click here to learn more about the Blue Cash Everyday from Business Insider's partner: The Points Guy.

3. Chase Freedom Unlimited

chase freedom unlimited no fee

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Welcome offer: 15,000 points or $150 cash back (after spending $500 in the first three months)

The Chase Freedom Unlimited is one of the best available options for a no-fee card - especially if there's a chance that you'll want to earn more valuable credit card rewards with a premium card later on.

That's because while Chase markets the card as "cash back," it actually earns Ultimate Rewards points that you can redeem for cash (1 point = 1¢).

If you decide that you want maximize the value of those points by purchasing travel with a bonus through Chase, or transfer them to frequent flyer partners, you can open a card like the Chase Sapphire Preferred or the Sapphire Reserve, and pool your points from the two cards. The Freedom Unlimited earns 1.5% cash back (or 1.5 points per dollar spent), so paired with a Sapphire Reserve, it's a great card to use for purchases that aren't made on travel expenses or dining.

Best of all, the card has no annual fee and often has 0% APR for the first 15 months on purchases and balance transfers. After that, there's a 17.24%-25.99% variable APR. If you have a major purchase ahead of you, that introductory offer can be useful.

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The Chase Freedom Unlimited is a fantastic all-around card. However, to get the most value when it's time to spend your points, you need the Sapphire Reserve or Preferred card, too, so you can pool your points. Otherwise, points are only worth 1¢ each no matter how you use them and they can't be transferred to airline or hotel partners.

Click here to learn more about the Chase Freedom Unlimited from Business Insider's partner: The Points Guy.

4. Citi Double Cash Card

citi double cash

Welcome offer: None.

All in all, the Citi Double Cash is the simplest card on this list. It earns 2% cash back - 1% when you make a charge, and 1% when you pay it. Since, if you're looking for credit card rewards, you should be paying your balance off in full each month, you can just look at the full 2%.

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There's one downside, though: the card doesn't have a sign-up bonus. That's significant, because the money you earn from a sign-up bonus can equal an entire year's worth of regular spending. Just look at the Wells Fargo Propel, above, which offers $300 worth of points. To get that much, you'd have to spend $15,000 on the Citi Double Cash.

While I would personally stick with a card that offered a generous sign-up bonus, there's no questioning the appeal of the Double Cash. With no categories to worry about, you're guaranteed among the highest consistent return rates of any cash back card - 2% across the board is nothing to sneeze at.

Click here to learn more about the Citi Double Cash Card.

5. Chase Freedom

chase freedom

Welcome offer: 15,000 points or $150 cash back (after spending $500 in the first three months)

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The Chase Freedom works virtually the same way as the Freedom Unlimited, earning cash back in the form of Chase Ultimate Rewards points that you can either combine with another card, or redeem for cash or merchandise.

The key difference is how it earns those rewards. Unlike the Freedom Unlimited - which earns 1.5% cash back (or 1.5 points per dollar spent), the regular Freedom earns 5% (or 5x) in one rotating category each quarter on up to $1,500 spent in that category. For example, Q1 of this year was any payments made through a mobile wallet like Apple Pay, while the current quarter includes purchases from gas stations, purchases at Walgreens, and Lyft rides.

Which Freedom-branded card is more rewarding for you depends on how you spend your money. Personally, I use both, but if I had to choose one, I'd stick with the Freedom Unlimited - the consistent earning rate above 1% would make up for the lack of quarterly bonuses. To each his or her own, though!

Click here to learn more about the Chase Freedom from Business Insider's partner: The Points Guy.

6. Chase Ink Business Cash Credit Card

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Welcome offer: $500 (or 50,000 Ultimate Rewards points) after spending $3,000 in the first three months

The Ink Cash is another solid Chase entry, although this one is a business card - however, anyone with just about any kind of business can qualify, whether you have a brick-and-mortar space with employees, or you're a freelancer, or even someone with a small side gig.

Just like with the two Freedom cards, you can pool the "cash" you earn with points from a points-earning card, effectively converting your cash into (potentially) more valuable points. Alternatively, you can reap the rewards in the form of cash instead.

The Ink Cash earns 5% cash back (or 5x points) on the first $25,000 in combined purchases at office supply stores and on internet, cable, and phone services each card holder year. It earns 2% back (or 2x points) on the first $25,000 in purchases at gas stations and restaurants each year, and 1% (or 1x point) on everything else with no cap.

The card offers a 0% introductory APR for 12 months (with a variable 14.99-20.99% APR after), and has no annual fee.

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Click here to learn more about the Chase Ink Business Cash from Business Insider's partner: The Points Guy.

7. A no-fee airline credit card

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Welcome offer: Varies

You may be sensing a theme here, but most airline credit cards worth having have an annual fee - although many of them will waive it for the first year. Those cards tend to come with useful benefits for people who fly with the airline, like priority boarding or free checked bags. You can learn more about the best overall airline credit cards here.

However, if you're interested in earning frequent flyer miles with a particular airline through your spending, but don't care about those perks and want to avoid the fee, you have a couple of options.

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If you're a Delta flyer, you can go for the Blue SkyMiles card from Amex, which offers 2x Delta SkyMiles on every dollar spent with Delta and at US restaurants, and 1x mile per dollar on everything else. It also gets you a 20% discount - in the form of a statement credit - on Delta in-flight purchases like food or drinks.

It offers 10,000 SkyMiles when you spend $500 on purchases in the first three months, and for a limited time, you can earn 2x miles per dollar spent and up to $50 in statement credits on Lyft rides.

American loyalists have a new option, the recently-released AAdvantage MileUp card. This card offers 2x AAdvantage miles on every dollar spent at grocery stores and with American Airlines, and 1x mile on everything else. It also offers 10,000 AAdvantage miles and a $50 statement credit after spending $500 in the first three months.

United's no-annual-fee card doesn't earn miles, but instead offers cash back, called "TravelBank" cash, that can only be redeemed towards flights. You'll earn 2% TravelBank cash for every dollar spent with United, and 1.5% on other purchases. You'll also get 25% back on in-flight food and drink purchases. The card offers a sign-up bonus of $150 in TravelBank cash after you spend $1,000 in the first three months.

8. The Amex EveryDay® Credit Card from American Express

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Welcome offer: 10,000 points (after spending $1,000 in the first three months)

American Express Membership Rewards is Amex's in-house rewards program, and the Amex EveryDay is the best no-fee card that earns them. These points can be redeemed for travel, merchandise, or more. However, the best option is to transfer them to a frequent flyer partner.

The EveryDay earns 2x points at US supermarkets (on up to $6,000 of purchases per year, then 1x after that) and at AmexTravel.com, and 1x on everything else. It also offers a 20% bonus on points earned in a billing period when you make 20 or more purchases during that period.

The card also offers a 0% intro APR on purchases and balance transfers for the first 15 months, before switching to a variable 15.24-26.24% APR. If you have a big purchase coming up and want some time to pay it off, but don't want to pay interest fees, this is a great option.

Like most Amex cards, features a few travel and purchase protections, as well as access to the Amex Offers program.

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While most people will be better off with a version of the card that has an annual fee, the EveryDay Preferred, the regular EveryDay is still a strong option - especially since there's no annual fee.

Click here to learn more about the Amex EveryDay Card

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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