Best of the Best: No Fee Niche Credit Cards Edition
I recently described my favorite no fee hotel and airline credit cards in the hobby. Clearly, we can rack up considerable, if not maximum, rewards without incurring a card annual fee. Lately, though, I’ve focused more on everyday rewards not directly related to travel. In that vein, what are several of the best no fee niche credit cards out there? Thankfully, plenty of options exist; here are some of my favorites!
Rakuten Visa
The Membership Rewards version of the Rakuten Visa grants cardholders an extra 3x points per dollar spent for purchases tracked via the Rakuten portal. Even better, this is in addition the normal points you earn from just using the portal! Of course, many of us enjoyed very actively using this card for Gift Card Mall and Giftcards.com purchases in the past. However, even since the devaluation of this method, cardholders have a wide array of merchant options for earning an extra 3x points via the Rakuten portal.
Not to be forgotten, cardholders can also earn bonus points for spend on in-store purchases tracked through Rakuten. In my experience, Rakuten is the most reliable portal out there – the vast majority of my Rakuten portal rewards track without issue. Of course, anything that’s missed can be easily submitted for resolution.
If you are interested in applying for this card, be careful that you are applying for the Membership Rewards version rather than the cash back one. For instance, log in to your Membership Rewards-earning Rakuten account and apply from there.
Citi Shop Your Way Mastercard
Many have applied for this card initially to then product change to the Sears ThankYou Points-earning card version; unfortunately, this tactic appears to no longer work. The good news is that holders of the basic Citi Shop Your Way Mastercard can earn huge returns on targeted spending offers. These offers can be substantial and routine. Currently, some cardholders are receiving an offer for 10% back in statement credits with at least $400 online spend in a month, up to $100 back per month through the end of January. The offers and types of participating merchants vary, but other offers can be similarly lucrative.
BP Visa
I’m not a BP customer, but those who are can save an extra 25 cents per gallon with the card and an additional 5 cents per gallon when using BPme app with the BP Visa’s 30-day welcome offer. Beyond the welcome offer timeframe, cardholders save 10 cents per gallon at BP/Amoco. Of particular note, the BP Visa earns 3% cash back at grocery stores. Cardholders receive 1% cash back everywhere else.
PenFed Power Cash Rewards Visa
Other 2% cash back everywhere cards exist (Citi Double Cash is my favorite), but the Power Cash shines for a different reason. A very quick cash out is possible. For instance, once a transaction posts to my account a few days after purchase, the rewards also show up. Even better, cardholders can immediately cash out. There’s no waiting around for the statement to close or payments required. In terms of pure rewards, I prefer the Double Cash, particularly due to the extra value I get from rewards via Shop Your Way. But the quick access to rewards and the card being issued by a non-heavy hitter in the credit cards rewards hobby make this card worth considering. It’s worth noting that this card is 1.5% cash back initially, but you can enable 2% cash back simply by maintaining $500 in a PenFed checking account.
Citi Rewards+ Mastercard
Yes, the Rewards+ may not be super unique since it’s issued by a major bank, but maximizing rewards with it is! The key is the Round Up feature of the Rewards+. A cardholder’s purchases are automatically rounded up to the closest 10 ThankYou points regardless of the purchase amount. While a $27.98 purchase rounds to 30 ThankYou points, a $0.49 purchase rounds to 10 ThankYou points! Therefore, a cardholder maximizes returns on small purchases. I describe here my 2020 Rewards+ strategy to obtain great return at a low scale. You can easily partner this card’s return with more lucrative rewards obtained with the Citi Premier, Prestige, and/or Double Cash. The Round Up feature has created a permanent spot in my money clip for the Rewards+. You got me, Citi!
Amtrak Guest Rewards Platinum Mastercard
Ok, ok, I know that this is a travel card, but it’s definitely niche! And while many couldn’t care less about Amtrak, those who love it (like me) can obtain sizable rewards without a fee using this card. The card earns 2x points on Amtrak spend and 1x on everything else – not exactly jaw-dropping. But the point value is impressive – I reliably obtain 2.9 cents per point on all long-haul travel and 2.5 cents per point on Acela bookings. For those who redeem on Amtrak, earning 2.5-2.9% returns from normal spend on a no fee card cannot be ignored.
My Favorite No Fee Niche Credit Card – Banana Republic Visa
A $30 welcome offer on a card from a clothier. Not head-turning or widely applicable. But for those who prefer Banana Republic, Gap, Old Navy, Athleta, or Hill City items, rewards can be huge with the Banana Republic Visa. Points are worth 1 cent each, and cardholders normally earn 5x at the above stores and 1x everywhere else. Most importantly, targeted offers are lucrative – I describe here how I’ve earned up to a 10.2% return in broad shopping categories. I, and some of you, have been able to clothe yourself and your family for almost free with this card! It’s not for everybody, but it’s a no-brainer for those who shop at any of these stores!
No Fee Niche Credit Cards – Conclusion
I enjoy the variety of no fee niche credit cards available, and I love discovering new ones even more. Quite often, some of the best value with these cards are beyond the welcome offers or other obvious angles. But for those who put in the time to explore the wrinkles of niche cards, true gems can be found. Do you hold any of the above cards? What are your favorite features of these cards? What other no fee niche credit cards do you enjoy?
Chase Sapphire Preferred® Card
Chase Sapphire Preferred® Card is the old king of travel rewards cards. Right now
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Learn more about this card and its features!
Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
