Some no annual fee credit cards come with small rewards, but they won’t be as substantial as rewards offered by other cards that require an annual fee. In general, no fee cards are geared towards users who are on a tighter budget or don’t use their credit card as often, preferring a simpler card over one with a lot of fancy benefits.

A no annual fee credit card is a great option for students looking to apply for their first credit card. Our pick is the BMO CashBack Mastercard, which offers no annual fee as well as 5% cash back on all purchases for the first three months. Find more details in our overview. 

With a no fee card, you will often receive smaller rewards and perks, but won't have to pay an annual fee. If you’re on a strict budget, a student, or someone who doesn’t use their card frequently enough to justify paying an annual fee for high-end rewards and bonuses, a no fee credit card might be the right choice for you. As long as you use your card moderately and pay your bills on time, a no fee card is an excellent choice for a casual card user.