Annual credit card fees for those who pay in full each month

[Michelle Lowry]

My Bank of America credit card may now come with an annual fee.  I guess it's not enough for them to charge the vendors 1-3% of my purchases.  They need more money to pay some seriously huge bonuses.

http://www.usatoday.com/money/perfi/credit/2009-10-13-bank-of-america-rewards-card-charges_N.htm?obref=obinsite

So does anyone have a credit card they suggest I switch to?  I have a debit card, but I think a credit card is a good way to rack up cash back (right now I get 1% back and pay no fees) and maintain a good credit history.

We could do a Costco-AMEX but Amex isn't accepted everywhere.  I guess I could just use my debit card where Amex isn't accepted.  But it'd be annoying/embarrassing to be told by some vendors it is not accepted if I whip out my Amex card without thinking.

Any other suggestions?

[Traci]

We love American Express. They go the extra mile whenever any problem arises. It is a pain that some places don't take AmEx, but I think it is completely worth it. AmEx still treats their customers as valuable assets, rather than a pain in their side (like so many other companies do thise days).

[Jon Allen]

I have a Citibank Dividend card- no fee, cash back.

[Paul Petersen]

From what I've read, there are many debit cards now that are starting to use some sort of  rewards system. You may want to look into that.

[Blaine Hawkes]

Chase does a rewards card. You do have to pay an annual fee to get it tough. I think it is $25. It also used to be that some places (car rentals, airlines) wouldn't take a debit card, but that is changing as visa and mastercard have pushed their debit cards more and more.

[Matt Konold]

I have a Chase rewards (mastercard) with no annual fee.  1% cash back (redeemed in $50 chunks).  It used to give 3% on gas too until they cut that. 

Here's a good one as well:  http://www.chasefreedomnow.com/ , 1% back on everything, 3% back on rotating categories (gas, supermarket, etc.), no annual fee, and $50 for signing up. 

I'm like you Michelle, and would rather not get an AMEX card.  For people who do, there is a Fidelity card that gives you 2% back on everything in the form of a deposit to a retirement account (so, basically 0% after the next market crash!!).  No annual fee on it, but you do have to have a Fidelity account. 

[Benn Griffin]

I too like Jon have the Citibank DIVIDEND card (a Visa), and haven't had any problems. Have used it for over a year now and have got over 180 bucks back in cash! Which means that Citibank has paid for 3-4 people to eat at my wedding next year! Woohoo!

[Michelle Lowry]

If you fed people McDonalds it would be more like 30 people if you do value meals or 45 if you let them choose 4 things off the dollar menu