Currently, reward credit cards are one of the most talked about financial products in the market. The best part is that they are specifically tailored for purposes like travel, balance transfer, gas rewards and cashback. But having a rewards credit card also means incurring an annual fee. These can range anywhere from $25 to $2500. However, numerous credit card companies have come up with no annual fee reward credit cards which waivers the charges for the first year.

A reward credit card with no annual fee might give you limited benefits, but it can still be a smart choice as it allows you to experiment without worrying about the year-end expense. The following are some incredible advantages of using a no annual fee reward credit card.

• Sign-up bonuses – Not just for the usual reward credit cards, the no annual fee variants too have fantastic deals which offer new users with sign-up points and fabulous deals.
• Services – Even with no annual fee, there are several reward credit cards which facilitate services such as purchase security, exclusive concierge service, fraud protection, return on eligible products, special money tools, travel insurance, free memberships in online retail stores, access to FICO scores, etc.
• Rewards – The rewards offered by such cards might be relatively limited as compared to cards levying annual fees. But you can earn points worth hundreds of dollars annually. These points can be utilized to redeem tickets, products, vouchers, etc. You can also use this type of card to supplement an existing card to receive better bonuses or returns.
• Credit score – These cards can be an excellent way to improve your credit score as you don’t have to pay up an annual fee. Within this year, you can exploit this card to make responsible purchases and strengthen your repayment capabilities. It can help if you are planning to apply for a loan anytime soon.

It is important to note that all reward credit cards with no annual fee will have a diverse combination of incentives. Therefore, before getting one, ensure that you compare these financial products thoroughly. You can find various comparison tools for credit cards online which scrutinize sign-up bonuses, interest rates, purchase points, limited offers, and terms.

At the moment some of the popular no annual fee reward credit cards are Chase Freedom, Fidelity Rewards Visa Signature Card, Hilton Honors Card from American Express, JetBlue Card, Discover it, Bank of America Travel Rewards Credit Card, etc.