If you make a credit card recommendation to TPG employees, you will most likely recommend a card that costs an annual fee. Most of our favorite cards come with many advantages, and these benefits are well beyond their annual fees, so we think they are worth paying.
However, you don’t have to pay an annual fee to develop a reliable credit card strategy. Whether you are unfamiliar with credit cards and hesitant commitments or insist on a tight budget, you can decide to choose one (or more) one (or more) on the market.
Here are some ways to develop a credit card strategy without paying an annual fee.
Cash Defender Strategy
Most unpopular credit cards are in the cash backpack category. Many beginners prefer the flexibility of cash returns, but they also attract more advanced users who don’t have the time (or tendency) to worry about maximizing points and mileage.
To maximize your cash returns, try having a card with a fixed income rate, one with a consistent bonus category, and one with a rotating category.
For example, you can stack the following Fee-free cash folding cards:
- Onepay Cash Reward Card: Earn unlimited 5% cash back on Walmart purchases (online or store) and 3% on non-members. Plus, earn unlimited 1.5% cashback on all other purchases. Even better, you will not enjoy foreign transaction fees purchased outside the United States
- Citi double cash card (See Interest Rates and Fees): 2% earnings are earned on all purchases (1% when you purchase, 1% when you pay).
- Capital One Enjoys Cash Reward Credit Card: Earn 5% off rent for hotels booked through Capital One’s travel booking website; 3% off on grocery stores (excluding supermarkets like Walmart and Target), restaurant, entertainment and popular streaming services; and 1% off on other purchases cash back. In addition, foreign transaction fees are not available for purchases outside the United States
- Chase FreedomFlex® (See Rates and Fees): 5% earned 5% on a quarterly basis (requires activation), 5% on a trip booked through ChaseTravel℠, travel booked in dining, dining (including takeout and qualified delivery services) and drugstore purchases, 2% on a Lyft ride, 2% on a Lyft ride (on September 30, 2027, 2027, 2027) and 1% on other purchases.
Please note that some cash backpack cards charge an annual fee, so check the card’s exquisite printing before applying.
Related: Best Cash Credit Cards
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Travel Reward Strategy
Even those who want to get a travel reward on the card can choose to have an annual fee card.
Hotel and airline co-card
Usually, a card shared by airlines and hotels that do not charge an annual fee will not bring many benefits.
Some unfamiliar hotel cards offer automatic elite status and have external benefits; these cards are best suited for new travelers or those who are unfaithful to a particular hotel chain.
No youthful fees Hilton Honors American Express Card (See rates and fees), for example, with automatic Hilton Silver Elite status, which allows you to take advantage of the fifth night of the program.
As for airline cards without annual fees, these airlines usually offer on-flight discounts to the airline. They may also offer additional privileges if you encounter a certain spending threshold.
For example, Joint portal card (See Rates and Fees) Offers a 25% discount as a statement credit for in-flight food, beverages and Wi-Fi. Plus, after you spend $10,000 or more in a year, United Gateway offers two free shipping bags.
Transferable reward card
Although not very common, some unfamiliar cards receive transferable rewards. this BlueBusiness® plus American Express credit cardFor example, there is no annual fee (see rates and fees) and earn membership reward points that you can transfer to any of Amex’s 20 hotel and airline partners.
If you are worried about qualifying for a business card, this is much easier than you think. Even a simple side hustle, like walking dogs, is enough to get cards like Blue Business Plus.
And the above Citi double cashget a 2% return in the form of Citi Thank You Points (1% when you buy and 1% when you pay). These points can now be transferred to Citi’s travel partners, although the ratio has been reduced.
You can also take advantage of the final grade-free reward duo: Capital One VentureOne Rewards Credit Card and Capital One Sakior Cash Rewards.
Ventureone alone earns 1.25 transferable capital per dollar per mile. Even if taste is a cash card, holding both allows you to combine rewards from both cards.
By doing so, you can take advantage of Ventureone’s full redemption options, including access to Capital One’s impressive 15-plus transfer partners.
Related: Better Together: The Final Guide to the Best Credit Card Combinations
Bottom line
You don’t have to pay an annual fee to develop a great card strategy. Whether you want to make money, transferable rewards or being able to maximize your use of points, there are some good unsatisfactory card options to choose from.
Having a budget does not necessarily mean saying goodbye to the credit card reward. In fact, a small card can help you save more money depending on the card you choose.
Related: 7 Reasons You Should Get (and Keep) a Credit Card
For rates and fees for the Hilton Honors Award, click here.
For rates and fees for Amex Blue Business Plus, click here.
