Credit Cards that Offer Rewards Without an Annual Fee

Factors to consider when shopping for a new credit card include the variable interest rate you'll pay on purchases and balance transfers, as well as the penalty fees for late payments or exceeding your credit limit. You'll also want to consider whether there is a yearly cost to hold the product. Many card issuers offer credit cards with no annual fees.

BankAmericard Cash Rewards Visa Signature Card
Customers do not pay an annual fee to use the BankAmericard Cash Rewards Visa Signature Card. While it may offer no interest on purchases for up to 12 months, the card's ongoing interest rate for purchases can range from 13 to 21 percent. The rate that applies to your account depends on your creditworthiness. The card provides users with 1 percent cash back on purchases, and cardholders may earn additional cash bonuses during promotional periods. A minimum interest charge of $1.50 applies for the billing periods in which you carry a balance.

GM Card
If the purchase of a new vehicle made by General Motors is in your future, you might consider applying for the GM Card. This no-annual-fee card allows you to accrue credits equal to 5 percent of each purchase you make. Those credits translate into dollars you can apply toward the purchase of a new GM car, truck or SUV, up to a limit designated for each model. After the initial zero-percent-interest period expires, expect an annual percentage rate (APR) of 14 to 23 percent to apply to purchases made with the card. It has a minimum interest charge of $1 in the months you carry a balance.

American Express Hilton HHonors Card
Those who like to travel may want to consider the American Express Hilton HHonors Card, another product with no annual fee. Each purchase charged to the card earns you points you can redeem for free hotel stays or airline travel. An APR of around 15.24 percent applies to purchases after a lower, introductory rate expires.

Discover Open Road Card
Customers get double cash rewards for the first $250 they spend at gas stations and restaurants each month when they use the Discover Open Road Card. The card has no annual fee and gives a 1 percent cash bonus for other purchases. You may pay no interest on purchases for the first year you have the card; after that, an APR of 12 to 20 percent may apply. In the months you carry a balance, you face a minimum interest charge of 50 cents.

Citi Forward Card
Get a Citi Forward Card, and you'll accumulate points you can redeem for gift cards, merchandise, charitable donations and other options. You won't pay an annual fee to use the card, and it offers a zero-percent introductory APR for purchases. After that, an APR of 13 to 21 percent can apply, with the exact rate based on your creditworthiness and the prime rate. A minimum interest charge of 50 cents applies during the billing periods in which you carry a balance.

Sources for this article:

Bank of America: BankAmericard Cash Rewards Visa Signature Card

HSBC: GM Card

American Express: Hilton HHonors Card from American Express

Discover: Discover Open Road Card

Citi: Citi Forward Card