No-annual-fee cards aren’t known for their high-end benefits. They are typically geared toward those looking to transfer balances or build credit.
However, some no-annual-fee options can offer more than just a basic set of benefits. Multiple cards from major card issuers give cardholders the option to transfer rewards to airline and hotel partners.
If you’ve been reading TPG for a while, you know that transferring rewards to partners often delivers the most value. Being able to do this without paying an annual fee may appeal to points and miles newbies or anyone exploring a new rewards ecosystem.
Let’s explore some of the best no-annual-fee cards with transferable rewards.
Best for renters
Paying rent with a credit card can help you earn rewards faster than many other expenses. I use my rental money to help me earn a welcome bonus with a high spending requirement.
Disadvantages of this: Generally speaking, there are fees for paying rent with a credit card. That is Bilt MasterCard®* Make a difference. With this card, you can earn bonus Bilt points (up to 100,000 points per year) on your rentals without incurring any annoying fees.
Bilt Mastercard information is collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
*TPG’s Brian Kelly is an advisor and investor in Bilt.
Remember, you need to make at least five transactions per billing cycle to earn bonus points. This means you can’t just use this card to charge rent and forget about it.
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Bilt points can be transferred to a number of high-value partners. For example, it’s the only rewards currency that can be transferred to Atmos Rewards, so fans of Alaska Airlines and Hawaiian Airlines in particular will strongly consider the Bilt Mastercard.
To learn more, check out our full review of Bilt Mastercard.
Best for American Airlines AAdvantage fans
American Airlines AAdvantage has not partnered with any issuer’s loyalty program for a long time. That changed when Citi and AAdvantage decided to deepen their partnership, resulting in the airline’s program being added to Citi’s lengthy list of transfer partners.
If you want to transfer your CitiThankYou Rewards points to AAdvantage without paying an annual fee, Citi Strata℠ Card (see rates and fees) is a good option.
Please note that Strata card holders can transfer points to AAdvantage at a ratio of 1:0.7. To get a better 1:1 transfer ratio you need a card such as Citi Strata Premier® Card (See Rates and Fees).
Despite this limitation, the Strata card still offers some solid benefits. Cardholders can select a category of their choice each quarter and earn 3 points for every $1 spent. Once I’m in a better position with my 5/24, I’ll consider this card. I like the ability to adjust bonus categories based on my spending habits, and this card also has an easy-to-achieve welcome bonus.
To learn more, check out our full review of the Citi Strata card.
Apply here: Citi Strata Card
Best for Chase customers
If you already have a Chase Ultimate Rewards Card or are interested in applying for one, consider Chasing Freedom® (see rates and charges) or Chase Freedom Flex® (See Rates and Fees).
The main advantage of these cards is their income categories. Freedom Unlimited earns 1.5% cash back on all purchases, while Freedom Flex earns 5% cash back in rotating quarterly categories (first $1,500 spent each quarter; activation required).
If you have a card that earns ultimate rewards, e.g. Chase Sapphire Preferred® Card (see Rates and Fees), you can combine the rewards you earn with the Freedom Card with your account. You can then transfer them to Chase’s 13 partners.
To learn more, check out our full reviews of Freedom Flex and Freedom Unlimited.
Apply here: Chasing freedom and flexibility
Apply here: Chasing unlimited freedom
Best for small businesses
Before you skip this because you don’t have a traditional business, stick with it. You don’t need a big brand or brick-and-mortar store to get approved for a small business card. Basic side hustles, like freelancing, dog walking, or driving for Uber, can all count.
If you need a quality business card with no annual fee and transferable rewards, consider American Express Blue Business® Plus Credit Card (See Rates and Fees).
This card, unlike the others I’ve recommended so far, doesn’t have any bonus categories.
Instead, card members earn 2 points for every $1 spent (or 1 point for every $1 spent up to $50,000 in a calendar year). While this won’t net you as many points as using a card with bonus categories, it’s a good option for those who don’t want to bother tracking their spending.
American Express Membership Rewards points are transferable to 20 partners, nearly as many as Bilt Rewards and Citi Appreciation Rewards partners. I’ve been in the Membership Rewards ecosystem for a few years now, so I love the flexibility and versatility of the program.
To learn more, check out our full review of Amex Blue Business Plus.
Apply here: American Express Blue Business Plus Credit Card
the simplest
Blue Business Plus may be the top business card on this list, but for those who want a spending card, the Capital One VentureOne Rewards Credit Card is a great option.
It earns a flat rate on all purchases rather than dividing rewards into bonus categories. Cardholders earn 1.25 miles per $1 spent on all purchases, and earning bonuses is not subject to spending caps.
With over 15 transfer partners, Capital One is somewhere in the middle of the pack. I’m not in the Capital One ecosystem, but many TPG people like to earn Capital One miles and transfer them to partners like Air Canada Aeroplan and Avianca LifeMiles.
To learn more, check out our full review of VentureOne Rewards.
Learn more: Capital One VentureOne Rewards Credit Card
bottom line
All of these cards come with no annual fees, and you can transfer their rewards to loyalty partners. Which card is best for your wallet depends on your spending habits and whether you’re willing to have multiple cards. Some of these cards work best when combined with an annual fee card, while others can reach their full potential on their own.
Whether you’re new to points and miles or just looking for a way to top up your wallet, consider one of these no-annual-fee cards. You don’t have to pay hundreds of dollars out of pocket every year to take advantage of the benefits of transferable rewards.
Related: Earn rewards on a budget with these no-annual-fee credit card strategies
For Amex Blue Business Plus rates and fees, click here.
