When you look at premium credit cards, the annual fees can be off-putting. Even if you think you'll get enough out of a card to justify a three-digit charge, that's a lot of pressure to spend money you otherwise might have saved.
Thankfully, many rewards credit cards waive their annual fee for new cardholders, allowing you to test the waters and see if the rewards are worth paying for.
Below, CNBC Select highlights the best credit cards that waive the annual fee for the first year.
Best credit cards with first year's fee waived
- Best for cash back: Blue Cash Preferred® Card from American Express (see rates and fees)
- Best for travel perks: United℠ Explorer Card (see rates and fees)
- Best for American Airlines benefits: Citi® /AAdvantage® Platinum Select® World Elite Mastercard®
- Best for Delta flyers: Delta SkyMiles® Gold American Express Card (see rates and fees)
Best for cash back
Who’s this for? The Amex Blue Cash Preferred is a great option if you typically spend a lot on groceries, as it offers an excellent cash back rate: 6% cash back at U.S. supermarkets (on up to $6,000 per year in eligible purchases, then 1%). The cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
Annual fee: $0 for the first year, then $95 (see rates and fees)
Other standout perks: The Amex Blue Cash Preferred also earns 6% cash back on select U.S. streaming subscriptions and 3% back at U.S. gas stations and on eligible transit purchases. You'll also receive a $120 Disney Streaming Credit (up to $10 in monthly statement credits for eligible purchases. Enrollment required. Subject to auto-renewal).
The Blue Cash Preferred® Card from American Express is a low-fee card with generous cash-back rewards and useful ongoing benefits, such as a monthly Disney Bundle credit. (Enrollment required for select benefits mentioned)
- High cash-back earnings for U.S. supermarkets and streaming services
- Intro-APR offer for purchases and balance transfers
- No annual fee for the first year
- It's less rewarding after the first year because of the annual fee
- Bonus rewards for U.S. supermarkets are capped
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply and find out your welcome offer. As High As $300 cash back* after you spend $3,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $3,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
- $0 intro annual fee for the first year, then $95.
- Enjoy 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.49%-28.49%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at DisneyPlus.com, Hulu.com, or Stream.ESPN.com U.S. websites. Subject to auto-renewal.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
Best for travel perks
Who’s this for? The United Explorer card offers great value for United flights and purchases. It also provides up to $120 in application fee credit for Global Entry, NEXUS, or TSA PreCheck (once every four years) and solid travel insurance benefits.
Annual fee: $0 for the first year, then $150
Other standout perks: The United Explorer Card features United Club airport lounge access via two one-time United Club℠ lounge passes, free checked bags for the primary cardholder and one companion on the same reservation (when you pay for the flight with your United Explorer Card), hotel credits and more.
The United℠ Explorer Card is worth it even if you only fly with United Airlines once or twice a year because you can take advantage of two United Club℠ passes per year when the primary cardmember or authorized user is traveling and you can receive free checked bags.
- No annual fee for the first year
- Unlocks upgrades for elite members on award flights
- Two free United Club airport lounge passes every year
- Valuable United Airlines perks, such as in-flight purchase discounts and the ability to earn elite status credit through credit card spending
- First checked bag free benefit requires you to pay for the flight with the card
- United Airlines has a dynamic award chart which can limit the value and flexibility of your miles
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn up to 60,000 bonus miles
- $0 introductory annual fee for the first year, then $150
- NEW! 9x total miles on eligible United flights and 3x miles on all other eligible United® purchases
- 2x miles on dining and hotel stays when booked with the hotel. 1x mile on all other purchases.
- Free first checked bag - a savings of up to $200 per roundtrip. Terms Apply. Plus, priority boarding on United® flights.
- 2 United Club one-time passes per year - over a $100 value
- Over $500 in partner credits each year
- NEW! Save 10% or more when booking flights with miles. Premier members save even more.
- Member FDIC
Best for American Airlines benefits
Who’s this for? The Citi/AAdvantage Platinum Select World Elite Mastercard is a solid choice for those who enjoy American flights, as it comes with a free first checked bag for you and up to four companions, preferred boarding and discounts on in-flight purchases.
Annual fee: $0 intro annual fee, then $99 after the first year
Other standout perks: The Citi AAdvantage Platinum Select earns 2X AAdvantage® miles on eligible American Airlines purchases and at restaurants and gas stations. Plus, if you spend $20,000 in credit card spending per membership year, you'll earn a $125 flight discount valid on American Airlines tickets.
The Citi® / AAdvantage® Platinum Select® World Elite Mastercard® is worth considering if you fly with American Airlines once or twice a year because you'll get your first checked bag free on domestic American Airlines itineraries.
- First checked bag free on eligible American Airlines flights for the cardholder and up to four travel companions on the same reservation
- No foreign transaction fees
- Preferred boarding
- American Airlines Flight Discount has a high spending requirement
- Has an annual fee
Best for Delta flyers
Who’s this for? The Delta SkyMiles Gold Card is best for Delta loyalists who want a reasonable annual fee. It offers free checked bags on Delta flights, up to $100 in statement credits for prepaid hotels or vacation rentals booked via Delta Stays and a $200 Delta Flight Credit after spending $10,000 on the card in a calendar year.
Annual fee: $0 introductory annual fee for the first year, then $150 (see rates and fees)
Other standout perks: In addition to Delta benefits, the Delta SkyMiles Gold also offers 2X miles on Delta Purchases, dining at U.S. restaurants, including takeout and delivery, and at U.S. supermarkets. Plus, get *purchase protection and *extended warranty coverage.
*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
The Delta SkyMiles® Gold American Express Card has the right mix of benefits if you occasionally fly with Delta, such as free checked bags, priority boarding and discounts.
- Earn up to $300 in travel credit every year
- First checked bag free for you and up to eight companions on eligible flights
- Discounts on eligible in-flight purchases and on Delta award flights (Not applicable to partner-operated flights or to taxes and fees).
- Annual fee after the first year
- Delta flight credit benefit has a high spending requirement to earn
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- You may be eligible for as high as 80,000 Bonus Miles after you spend $2,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you're approved and find out your exact welcome offer amount – all with no credit score impact. If you're approved and choose to accept the Card, your score may be impacted.
- Enjoy a $0 introductory annual fee for the first year, then $150.
- Delta SkyMiles® Gold American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- $200 Delta Flight Credit: After you spend $10,000 in purchases on your Card in a calendar year, you can receive a $200 Delta Flight Credit to use toward future travel.
- When you use your Delta SkyMiles® Gold American Express Card, you can earn: 2X miles on Delta Purchases, 2X miles at restaurants, 2X miles at U.S. supermarkets, 1X miles on all other eligible purchases. Every mile you earn brings you closer to the places you want to go. Turn them into your next trip, use them for seat upgrades, and more.
- Enjoy your first checked bag free on Delta flights and save up to $70 per person on a round-trip Delta flight.
- Receive Zone 5 Priority Boarding on Delta flights; board early, stow your carry-on bag and settle in sooner.
- $100 Delta Stays Credit: Get up to $100 back per year as a statement credit after using your Delta SkyMiles® Gold American Express Card to book prepaid hotels or vacation rentals through Delta Stays on delta.com.
- Want even more flexibility? Take up to $50 off the cost of your flight for every 5,000 miles you redeem with Pay with Miles when you book on delta.com.
- Receive a 20% savings in the form of a statement credit on eligible Delta in-flight purchases after using your Card.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- With Send & Split®, you can send money and split your Card purchases with any other Venmo or PayPal user, directly from the Amex App. Enroll today.
- Terms Apply.
- See Rates & Fees.
Looking for a different card? Compare credit cards CNBC Select’s credit card marketplace.
Are annual fee credit cards worth it?
While premium credit cards with higher annual fees can deliver value, whether a card is worth the cost depends on whether it fits your lifestyle.
If you're newer to credit cards, it probably doesn't make the most sense to start by choosing one with an extremely high annual fee — unless you're confident in your finances and ability to pay the card off each month. It's also important to determine whether the benefits fit your current habits; if you don't travel much, you probably don't need a card that comes with a TSA PreCheck® credit or other travel perks.
It's also important to figure out how much effort you're willing to put into maximizing the value of your credit card. Many premium credit cards provide value through statement credits for specific brands and partners. If the process is hard to navigate or you don't typically make purchases that would qualify for the credit, that perk is inherently less valuable.
Whenever you're considering a credit card with an annual fee, make sure you at least break even in value and recoup the fee.
Pros and cons of cards that waive your first annual fee
- Lower barrier to entry: Not paying the annual fee for the first year saves you around $100 or so, depending on the card.
- Hands-on experience: Using the card for up to a full year helps you better understand how well the card meshes with your spending habits and lifestyle.
- More premium perks: Cards that charge annual fees typically offer stronger perks and rewards.
- Many cards automatically re-up: Many cards will automatically charge you the second year's annual fee when the time comes, unless you specifically remember to cancel the card ahead of the charge.
- Often higher financial risk: More premium cards typically come with higher spending limits and penalty APRs, making it even more important to track your finances.
FAQs
Can I get my annual credit card fee waived?
Yes, it is possible to get a credit card's annual fee waived. Many active-duty military service members may have annual fees waived, and other situations may be determined by the bank directly.
Who offers credit cards with no annual fee?
Most of the major credit card issuers, like Chase, Amex, Citi, Capital One and Bank of America, all offer credit cards that don't charge annual fees.
Should I cancel a credit card if it has an annual fee?
If the benefits you get from the card don't outweigh the annual fee, it might be worth canceling it. However, if you use the card enough to justify the cost, keeping it could still make sense. Keep in mind that closing a card can affect your credit score, especially if it's an older account with a high credit limit.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best credit cards that waive your first annual fee.
Our methodology
To determine which cards offer the best value for rebuilding credit CNBC Select analyzed over 250 major credit cards issued through FDIC-insured banks and NCUA-insured credit unions that are widely available in the U.S.
We compared each card on a range of features, including rewards (e.g., cash back, points and miles), annual fees, welcome bonuses, introductory and standard APR and balance transfer fees and foreign transaction fees. We also considered additional perks (e.g., ongoing travel or merchant statement credits), cardholder protections (e.g., purchase protection, $0 liability protection and travel insurance), the application process when available (e.g., is there a credit pull or required credit score) and how easy it is to redeem points (e.g., are rewards are tied to a specific brand; if transferable, to how many/which partners, can you redeem for straight cash back).
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
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For rates and fees of the Blue Cash Preferred® Card from American Express, click here.
For rates and fees of the Delta SkyMiles® Gold American Express Card, click here.
