The Top Rewards Credit Cards That Waive the First Year’s Annual Fee

The Top Rewards Credit Cards That Waive the First Year’s Annual Fee

Many credit cards, especially those with excellent benefits and lucrative sign-up bonuses, have annual fees. Many of the top travel rewards credit cards have annual fees that range from $95 per year to $550 per year. Although these cards can provide excellent rewards and benefits, paying the annual fee can be painful.

Fortunately, some credit cards waive the annual fee for new cardholders during the first year. This gives you a chance to use the card for a year before having to decide whether the annual fee is worth the rewards and benefits provided by the card.

Although there are some solid cards that never charge an annual fee, this guide focuses on cards that have an annual fee but waive it for your first year with the card. Some of the cards that have waived annual fees for the first year are listed below in order of their current bonus, with the most valued bonuses listed first.

Chase Sapphire Preferred Card

Current bonus: 50,000 Chase Ultimate Rewards points after spending $4,000 in the first three months. According to TPG’s latest valuations, this bonus is worth $1,050.

Standout benefits: Earn 2x on travel and dining; 1x on all other purchases. Earn valuable Chase Ultimate Rewards points. Benefits include no foreign transaction fees, primary auto rental collision damage waiver, trip cancellation/interruption insurance and baggage delay insurance.

Annual fee: $0 for the first year, then $95

Quick take: The Chase Sapphire Preferred is a solid travel rewards card, especially if you don’t travel that much but can get good value out of the Chase Ultimate Rewards bonus, the travel benefits and the 2x on dining and restaurants. For more information on this card, check out the following posts:

One Year of Earning and Burning with the Chase Sapphire Preferred Card 5 Reasons Chase Sapphire Preferred Should Be Your First Card 5 Reasons to Consider the Chase Sapphire Preferred Over the Sapphire Reserve Credit Card Review: Chase Sapphire Preferred The Business Gold Rewards Card from American Express OPEN (Photo by vgajic/Getty Images)

Current bonus: 50,000 American Express Membership Rewards points after spending $5,000 in the first three months. This bonus is worth $950 based on TPG’s valuations. Note that you might be able to find a targeted higher offer by using the CardMatch tool.

Standout benefits: The card has five bonus categories that are well-suited for small businesses:

Airfare purchased directly from airlines US purchases for advertising in select media US purchases at gas stations US purchases for shipping US computer hardware, software, and cloud computing made directly from select providers

Select one of these categories to earn 3x; purchases in the other four categories earn 2x. Only the first $100,000 of purchases in each category each year earns 2x or 3x; all purchases outside these five categories or over the first $100,000 annually in each category earn 1x. Benefits include secondary car rental loss and damage insurance, premium roadside assistance, baggage insurance, extended warranty protection, purchase protection, no foreign transaction fees and access to Amex Offers.

Annual fee: $0 for the first year, then $175

Quick take: The Business Gold Rewards Card can provide good value for small business owners, especially in the first year due to the generous welcome bonus and waived annual fee. For more information on this card, check out the following posts:

5 Reasons to Get the Business Gold Rewards Card from American Express OPEN 5 Lesser-Known Perks of the Business Gold Rewards Card from American Express Amex Business Gold Rewards vs. Amex Business Platinum

Credit Card Review: Amex Business Gold Rewards Card

Citi ThankYou Premier Card

Current bonus: 50,000 Citi ThankYou Points after spending $4,000 in the first three months. That’s equal to $850 based on TPG’s valuations. We’ve also seen 60,000-point offers (also for $4,000 in spend in the first three months) circulating, which would boost the bonus value to $1,020.

Standout benefits: Earn 3x on travel (including most gas stations); 2x on dining out and entertainment; 1x on all other purchases. No foreign transaction fees.

Annual fee: $0 for the first year, then $95

Quick take: The Citi ThankYou Premier is a solid mid-level travel credit card for those looking for more benefits than the no-fee Citi ThankYou Preferred Card provides but less of an annual fee than the Citi Prestige. For more information on this card, check out the following posts:

Citi ThankYou Premier: Should This Be Your Next Card? Maximizing the Citi ThankYou Premier Card Is the Citi ThankYou Premier Worth the Annual Fee? Credit Card Review: Citi ThankYou Premier Citi / AAdvantage Platinum Select World Elite Mastercard

Current bonus: 50,000 AAdvantage miles after spending $2,500 in the first three months, worth $700 based on TPG valuations. Alternatively, the business version of this card — the CitiBusiness / AAdvantage Platinum Select World Elite Mastercard — just bumped its welcome bonus to 70,000 AAdvantage miles after spending $4,000 in the first four months.

Standout benefits: Earn 2x at restaurants and gas stations and on eligible American Airlines purchases; 1x on all other purchases. First checked bag free on domestic American Airlines itineraries for you and up to four companions traveling with you on the same reservation. No foreign transaction fees. Earn a $100 American Airlines flight discount after spending $20,000 or more in purchases during your card year and renewing your card.

Annual fee: $0 for the first year, then $99

Quick take: The Citi / AAdvantage Platinum Select World Elite Mastercard can be particularly helpful if you fly American Airlines domestically in basic economy or as a family, domestically on awards or frequently on awards. For more information on this card, check out the following posts:

7 Reasons to Get the Citi AAdvantage Platinum Card 5 Lesser-Known Benefits of the Citi AAdvantage Platinum Mastercard Who Should (and Who Shouldn’t) Get The Citi AAdvantage Card? Card Review: Citi/AAdvantage Platinum Select World Elite Mastercard United Explorer Card

Current bonus: 40,000 United miles after spending $2,000 in the first three months, plus a $100 statement credit after your first purchase. According to TPG’s latest valuations, the 40,000 miles are worth $560, so the total bonus is worth about $660. This bonus will only be around through August 15. Alternatively, the business version of this card — the United MileagePlus Explorer Business Card — offers 50,000 United miles after spending $3,000 in the first three months.

Standout benefits: Earn 2x at restaurants, gas stations, office supply stores and on United purchases. Application fee credit for Global Entry ($100) or TSA PreCheck ($85) every four years. When flying on United-operated flights you’ll get a free checked bag for you and a companion on the same reservation when you purchase your ticket with this card, priority boarding, two United Club passes per year, 25% off in-flight purchases and complimentary premier upgrades on award tickets. Other benefits include trip delay reimbursement, baggage delay insurance, lost luggage reimbursement, trip cancellation/interruption insurance, primary auto rental collision damage waiver, purchase protection, extended warranty protection and no foreign transaction fees.

Annual fee: $0 for the first year, then $95

Quick take: The United Explorer Card can provide a lot of value if you fly United frequently, especially if you don’t have elite status with a Star Alliance airline. The redesigned card just launched in June 2018, so check out the following posts to learn more about it:

United’s New Explorer Credit Card Launches June 1 United Explorer Card 40,000-Mile Sign-Up Bonus Extended Through August 15 Capital One Venture Rewards Credit Card

Current bonus: 50,000 Capital One Venture miles after spending $3,000 within the first three months. Since these miles have a fixed value of 1 cent each, they’re worth $500. Here’s how to redeem Capital One Venture miles.

Standout benefits: Earn 10x on Hotels.com bookings at Hotels.com/Venture; 2x on all other purchases. Benefits include purchase security, extended warranty benefit, lost luggage reimbursement, secondary auto rental collision damage waiver, no foreign transaction fees and a $100 Global Entry or $85 TSA PreCheck fee rebate every four years.

Annual fee: $0 for the first year, then $95

Quick take: This card can be particularly valuable when booking hotels through Hotels.com/Venture. For more information on this card, check out the following posts:

6 Reasons to Get the Capital One Venture Rewards Card Capital One Venture vs. Chase Sapphire Preferred Credit Card Review: Capital One Venture Rewards Premier Rewards Gold Card from American Express

Current bonus: 25,000 American Express Membership Rewards points after spending $2,000 in the first three months. TPG’s latest valuation values this bonus at $475. Note that you might be able to find a targeted higher offer by using the CardMatch tool.

Standout benefits: Earn 3x on flights booked directly with airlines; 2x at US restaurants, US gas stations and US supermarkets; 1x on other purchases. Get a fee credit to cover up to $100 per calendar year of incidental airline fees such as baggage fees and in-flight purchases at one qualifying airline. Get a $75 hotel credit toward dining, spa and resort activities, plus a room upgrade upon arrival, when you book a 2+ night stay through the Amex Hotel Collection. Other benefits include purchase protection, return protection, extended warranty protection, baggage insurance, secondary car rental loss and damage insurance, premium roadside assistance, no foreign transaction fees and access to Amex Offers.

Annual fee: $0 for the first year, then $195

Quick take: This card is a solid pick if the Amex Membership Rewards program’s selection of airline and hotel partners aligns with your travel and you don’t want to pay the $550 annual fee required by the Platinum Card® from American Express. For more information on the Premier Rewards Gold Card, check out the following posts:

One Year of Earning and Burning With Amex Premier Rewards Gold Maximizing the Amex Premier Rewards Gold Card in 2016 Credit Card Review: Premier Rewards Gold Card from American Express Gold Delta SkyMiles® Credit Card from American Express

Current bonus: 30,000 Delta miles after spending $1,000 in the first three months, plus a $50 statement credit after your first Delta purchase in the first three months. Based on TPG’s valuations, the Delta miles bonus is worth $360, so the total bonus is worth about $410. The business version of this card — the Gold Delta SkyMiles® Business Credit Card from American Express — currently offers the same bonus.

Standout benefits: Earn 2x on purchases made directly with Delta; 1x on all other purchases. When traveling on Delta-marketed and Delta-operated flights, the primary cardholder and up to eight companions traveling on the same reservation get their first bag is checked for free and priority boarding. Other benefits include extended warranty, return protection, purchase protection and no foreign transaction fees.

Annual fee: $0 for the first year, then $95

Quick take: Although this isn’t the best welcome bonus we’ve seen for the Gold Delta SkyMiles card, getting the card now could still be worthwhile if you have travel on Delta soon and need to check a bag. The first free checked bag benefit is particularly valuable for groups and families that travel together frequently on Delta but don’t have status.

Bottom Line

As this list demonstrates, you don’t have to pay a steep annual fee to enjoy great perks with a travel rewards credit card. In fact, for all the cards listed above you don’t have to pay an annual fee at all for the first 12 months. This lets you see the value of the card’s rewards and benefits during the first year before having to decide whether the value of these rewards and benefits justifies paying the annual fee.

Granted, new cardholder bonuses usually make the first year of card membership the most lucrative. However, depending on your travel patterns, at least one card in the list above could be worthwhile long-term due to its earning potential and travel/shopping benefits.