What’s better than getting cash back when you shop with a rewards credit card? Earning cash back with no annual fee attached. There’s an array of credit card providers that offer cash-back credit cards with no annual fee. The trick to finding one that will work for you is to evaluate rewards categories, the percentage of cash you can earn, spending limits, and the other perks and benefits of the card.
There’s one catch: you’ll need at least a fair-to-good credit score to qualify for most of the best cash-back cards with no annual fee.
Best cash-back cards with no annual fee
The Wells Fargo Active Cash Card is a simple, straightforward cash reward credit card with unlimited 2% cash rewards on purchases. It really doesn’t get any easier. Plus, you can earn a $200 cash rewards bonus when you spend $500 in purchases in the first three months of account ownership.
You can also enjoy cellphone protection of up to $600 for damage or theft after a $25 deductible when you pay your monthly cell phone bill with the card. And you’ll get complimentary monthly FICO score updates, the scoring model most frequently used by lenders.
- Intro Balance Transfer APR
- 0% intro APR for 15 months from account opening on qualifying balance transfers
- Intro Purchase APR
- 0% intro APR for 15 months from account opening
- Regular APR
- 20.24%, 25.24%, or 29.99% Variable APR
- Balance Transfer Fee
- up to 5%, min: $5
The Wells Fargo Active Cash Card is a simple, straightforward cash reward credit card with unlimited 2% cash rewards on purchases. It really doesn’t get any easier. Plus, you can earn a $200 cash rewards bonus when you spend $500 in purchases in the first three months of account ownership.
You can also enjoy cellphone protection of up to $600 for damage or theft after a $25 deductible when you pay your monthly cell phone bill with the card. And you’ll get complimentary monthly FICO score updates, the scoring model most frequently used by lenders.
- Intro Balance Transfer APR
- 0% intro APR for 15 months from account opening on qualifying balance transfers
- Intro Purchase APR
- 0% intro APR for 15 months from account opening
- Regular APR
- 20.24%, 25.24%, or 29.99% Variable APR
- Balance Transfer Fee
- up to 5%, min: $5
The Capital One SavorOne Cash Rewards Credit Card* is best for people who travel and dine out frequently, due to its generous tiered rewards system. You can earn 3% cash back on dining and at grocery stores (excluding superstores like Walmart and Target) and 10% cash back on purchases made through Uber and Uber Eats, plus a complimentary Uber One membership (through Nov. 14, 2024).
For those who want travel rewards while still enjoying rewards redemption flexibility and no annual fee, the SavorOne card lets you earn an unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.
Plus, you can earn a $200 cash bonus if you spend at least $500 on purchases within the first three months of opening the account.
- Intro Balance Transfer APR
- 0% intro on balance transfers for 15 months
- Intro Purchase APR
- 0% intro on purchases for 15 months
- Regular APR
- 19.99% – 29.99% (Variable)
- Balance Transfer Fee
- 3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time
The Capital One SavorOne Cash Rewards Credit Card* is best for people who travel and dine out frequently, due to its generous tiered rewards system. You can earn 3% cash back on dining and at grocery stores (excluding superstores like Walmart and Target) and 10% cash back on purchases made through Uber and Uber Eats, plus a complimentary Uber One membership (through Nov. 14, 2024).
For those who want travel rewards while still enjoying rewards redemption flexibility and no annual fee, the SavorOne card lets you earn an unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.
Plus, you can earn a $200 cash bonus if you spend at least $500 on purchases within the first three months of opening the account.
- Intro Balance Transfer APR
- 0% intro on balance transfers for 15 months
- Intro Purchase APR
- 0% intro on purchases for 15 months
- Regular APR
- 19.99% – 29.99% (Variable)
- Balance Transfer Fee
- 3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time
The Blue Cash Everyday Card from American Express is another tiered rewards card that lets you earn 3% cash back in categories where people tend to spend the most, including U.S. supermarkets, U.S. gas stations and U.S. online retail purchases (on up to $6,000 in spending per year for each category, then 1%). Other purchases earn 1% rewards rates, and cash back is received in the form of Reward Dollars that can be redeemed as a statement credit. Plus, you can get a $7 monthly statement credit when you spend at least $9.99 per month on an eligible Disney+ streaming bundle (subject to auto-renewal).
There’s also a generous welcome bonus, although the required spend is higher than some cards in its class. Earn a $200 statement credit after you spend $2,000 in purchases within the first six months.
- Intro Balance Transfer APR
- 0% on balance transfers for 15 months
- Intro Purchase APR
- 0% on Purchases for 15 months
- Regular APR
- 19.24% – 29.99% Variable
- Balance Transfer Fee
- Either $5 or 3% of the amount of each transfer, whichever is greater.
The Blue Cash Everyday Card from American Express is another tiered rewards card that lets you earn 3% cash back in categories where people tend to spend the most, including U.S. supermarkets, U.S. gas stations and U.S. online retail purchases (on up to $6,000 in spending per year for each category, then 1%). Other purchases earn 1% rewards rates, and cash back is received in the form of Reward Dollars that can be redeemed as a statement credit. Plus, you can get a $7 monthly statement credit when you spend at least $9.99 per month on an eligible Disney+ streaming bundle (subject to auto-renewal).
There’s also a generous welcome bonus, although the required spend is higher than some cards in its class. Earn a $200 statement credit after you spend $2,000 in purchases within the first six months.
- Intro Balance Transfer APR
- 0% on balance transfers for 15 months
- Intro Purchase APR
- 0% on Purchases for 15 months
- Regular APR
- 19.24% – 29.99% Variable
- Balance Transfer Fee
- Either $5 or 3% of the amount of each transfer, whichever is greater.
Citi’s Custom Cash Card* takes a unique approach to tiered rewards. Each billing cycle, you’ll earn 5% cash back on up to $500 in purchases in your top eligible spending category (then 1%) and 1% unlimited on all other purchases.
Citi ThankYou points can be redeemed for cash, a statement credit, gift cards, travel or on Amazon when you select “Shop with Points.” While Capital One’s SavorOne may offer better rewards, it’s worth considering the Custom Cash if you’re looking to diversify your credit card earnings.
The Custom Cash also comes with a welcome bonus: earn $200 cash back, which comes in the form of 20,000 ThankYou points, after you spend $1,500 on purchases within the first six months of opening your account. It’s less rewarding than most other welcome bonuses on this list, with a steep spending threshold, but can help boost your rewards if you can earn it through your regular spending.
- Intro Balance Transfer APR
- 0% for 15 months on balance transfers
- Intro Purchase APR
- 0% for 15 months on purchases
- Regular APR
- 19.24% – 29.24% (Variable)
- Balance Transfer Fee
- Balance transfer fee applies with this offer 5% of each balance transfer; $5 minimum.
Citi’s Custom Cash Card* takes a unique approach to tiered rewards. Each billing cycle, you’ll earn 5% cash back on up to $500 in purchases in your top eligible spending category (then 1%) and 1% unlimited on all other purchases.
Citi ThankYou points can be redeemed for cash, a statement credit, gift cards, travel or on Amazon when you select “Shop with Points.” While Capital One’s SavorOne may offer better rewards, it’s worth considering the Custom Cash if you’re looking to diversify your credit card earnings.
The Custom Cash also comes with a welcome bonus: earn $200 cash back, which comes in the form of 20,000 ThankYou points, after you spend $1,500 on purchases within the first six months of opening your account. It’s less rewarding than most other welcome bonuses on this list, with a steep spending threshold, but can help boost your rewards if you can earn it through your regular spending.
- Intro Balance Transfer APR
- 0% for 15 months on balance transfers
- Intro Purchase APR
- 0% for 15 months on purchases
- Regular APR
- 19.24% – 29.24% (Variable)
- Balance Transfer Fee
- Balance transfer fee applies with this offer 5% of each balance transfer; $5 minimum.
Chase Freedom Flex* combines rotating rewards categories with generous tiered rewards -- it’s best for anyone who wants a card that offers cash back in common categories. The Freedom Flex delivers 5% cash back on up to $1,500 on combined purchases in quarterly bonus categories, but unlike the Citi Custom Cash, you will need to activate the quarterly bonuses. You’ll also earn 5% cash back on travel purchases made through Chase Travel℠, 3% on dining at restaurants, 3% on drugstore purchases and 1% on all other purchases. Plus, you can earn a welcome bonus of $200 when you spend $500 in the first three months.
If you want to rack up the rewards in your first year on everyday spending, this is a great card to carry. It also offers a host of other benefits, including cell phone protection, trip cancellation insurance, and travel and emergency assistance.
- Intro Balance Transfer APR
- 0% Intro APR on Balance Transfers for 15 months
- Intro Purchase APR
- 0% Intro APR on Purchases for 15 months
- Regular APR
- 20.49% – 29.24% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
Chase Freedom Flex* combines rotating rewards categories with generous tiered rewards -- it’s best for anyone who wants a card that offers cash back in common categories. The Freedom Flex delivers 5% cash back on up to $1,500 on combined purchases in quarterly bonus categories, but unlike the Citi Custom Cash, you will need to activate the quarterly bonuses. You’ll also earn 5% cash back on travel purchases made through Chase Travel℠, 3% on dining at restaurants, 3% on drugstore purchases and 1% on all other purchases. Plus, you can earn a welcome bonus of $200 when you spend $500 in the first three months.
If you want to rack up the rewards in your first year on everyday spending, this is a great card to carry. It also offers a host of other benefits, including cell phone protection, trip cancellation insurance, and travel and emergency assistance.
- Intro Balance Transfer APR
- 0% Intro APR on Balance Transfers for 15 months
- Intro Purchase APR
- 0% Intro APR on Purchases for 15 months
- Regular APR
- 20.49% – 29.24% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
While Chase Freedom Flex is a good card for rotating categories, Discover it Cash Back* has a simpler rewards structure and unique welcome bonus. You’ll earn 5% cash back on rotating quarterly categories (up to $1,500 per quarter), upon activation. After that you’ll earn a standard 1% cash back and 1% on all other purchases. Discover’s welcome bonus will take more patience to receive but is potentially more rewarding than most. Discover will match all of the cash back you earn at the end of your first year.
Discover it Cash Back also has a potentially lower interest rate than other cards on this list for highly qualified applicants, with a 17.24% starting variable APR after the introductory APR expires.
- Intro Balance Transfer APR
- 0% for 15 months
- Intro Purchase APR
- 0% for 15 months
- Regular APR
- 17.24% – 28.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
While Chase Freedom Flex is a good card for rotating categories, Discover it Cash Back* has a simpler rewards structure and unique welcome bonus. You’ll earn 5% cash back on rotating quarterly categories (up to $1,500 per quarter), upon activation. After that you’ll earn a standard 1% cash back and 1% on all other purchases. Discover’s welcome bonus will take more patience to receive but is potentially more rewarding than most. Discover will match all of the cash back you earn at the end of your first year.
Discover it Cash Back also has a potentially lower interest rate than other cards on this list for highly qualified applicants, with a 17.24% starting variable APR after the introductory APR expires.
- Intro Balance Transfer APR
- 0% for 15 months
- Intro Purchase APR
- 0% for 15 months
- Regular APR
- 17.24% – 28.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
If you don’t qualify for some of the other cards on this list, consider the Petal 2 Visa card, issued by WebBank. It may use an alternate scoring model, the CashScore, to evaluate a borrower’s creditworthiness, which could help you qualify for the card without a credit history.
You’ll enjoy many of the same cash-back rewards that other cards offer. Specifically, you can earn up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments, plus 2% to 10% at select merchants. There are no rotating categories to remember. There are also no foreign transaction fees and no returned payment fees with this card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
If you don’t qualify for some of the other cards on this list, consider the Petal 2 Visa card, issued by WebBank. It may use an alternate scoring model, the CashScore, to evaluate a borrower’s creditworthiness, which could help you qualify for the card without a credit history.
You’ll enjoy many of the same cash-back rewards that other cards offer. Specifically, you can earn up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments, plus 2% to 10% at select merchants. There are no rotating categories to remember. There are also no foreign transaction fees and no returned payment fees with this card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
What is a cash-back credit card?
As the name implies, a cash-back credit card offers a percentage of money back on eligible purchases. Most often, you’ll receive cash back in the form of a statement credit, although you may be able to request a check or direct deposit into your bank account. Some card issuers allow you to redeem your rewards for gift cards or merchandise, as well.
With cash back cards, you earn a percentage for every dollar you spend. In general, 1% cash back equals one cent of rewards per dollar spent, but rates can vary by card issuer and offer.
Types of cash-back credit cards
Cash-back credit cards vary in how they calculate rewards. Some have spending categories or tiers of points depending on what you purchase. Others offer a flat-rate for every qualifying purchase.
Rotating categories
Cards with rotating spending categories, like Chase Freedom Flex and Discover it Cash Back, let you earn higher cash-back rates in categories that change quarterly -- as long as you activate them.
Flat-rate cash back
The simplest cash-back card to use, a flat-rate cash back card delivers the same value, typically 1% to 2%, on every qualifying purchase, regardless of the spending category.
Tiered cash back
Tiered cash-back cards are best for people who want to use a rewards card for a specific purpose. These cards offer higher cash-back rates in specific spending categories that don’t change. Common categories include spending at gas stations, restaurants and grocery stores.
What does no annual fee on a cash-back credit card mean?
“No annual fee” simply means that you don’t have to pay an annual fee to carry and use the credit card. You also don’t have to worry about spending a minimum amount of money to earn enough rewards to cover the annual fee and make the card worth carrying.
However, most cash-back credit cards have other fees, which could wipe out any rewards you’ve earned.
APR
If you don’t pay your balance in full when your bill comes due each month, you’ll accrue interest on the remaining balance. Some cards offer a 0% introductory APR on purchases for a specified time as long as you make the minimum monthly payment, but once that expires, you’re generally subject to the card’s standard APR.
Balance transfers
Some cash-back credit cards have balance transfer offers that let you move a balance from another credit card to your cash-back card, typically at a low introductory APR. If you complete a balance transfer, you’ll likely have to pay a balance transfer fee of 3% to 5%. You should also refrain from using your cash-back card to earn rewards until the balance transfer is paid off. Otherwise, you might find yourself with more credit card debt.
Other fees
Credit cards may charge late fees or cash advance fees. It’s important to read the fine print before you choose your cash-back credit card.
How to choose the right cash-back card
Choosing the right cash-back card depends largely on your spending habits and what other benefits you look for in a credit card. Follow these steps to choose the right cash-back card.
Determine your top spending categories
Do you dine out frequently? Take a lot of road trips? Or do you want a card that rewards you regardless of what you buy? Choose a card that fits your spending habits to maximize rewards. To do this, look at your recent bank statements and existing credit card statements. Do the math to determine where you spend the most money.
Decide the rewards structure that most benefits you
If you want a card for flexible spending and have a system to keep track of the categories, a card with rotating categories might be best. Otherwise, a flat-rate rewards card could deliver the most cash-back for you.
Consider other benefits that may be valuable to you
Are you looking for a card with no balance transfer fee or a 0% introductory APR? Do you want features like purchase protection, cellphone insurance or travel perks? Research the cards you’re considering to weigh the pros and cons of each.
Compare cards with no annual fee vs. similar cards with annual fee
If you tend to charge hundreds or thousands of dollars a month, a card with an annual fee can pay for itself in rewards. For instance, if your card has a $75 annual fee, you’d have to spend $3,750 per year to earn your fee back if you receive 2% rewards on those purchases. Credit cards that charge annual fees typically offer additional benefits, whether it’s a higher rewards rate or other perks, which could make it worth the cost, as long as you pay your full balance on time each month.
Pros and cons of a cash-back card with no annual fee
In general, cash-back credit cards with no annual fee have few drawbacks. But as with any credit card, there are some to consider.
Pros
No annual fees to offset your cash-back earnings
Receive rewards as cash or as a statement credit, which can lower the balance on your account
Cons
Potentially lower reward rates
Cash back isn’t always worth as much as miles or points
How do I redeem my cash back?
Credit card companies typically make it easy to redeem your cash back. Usually, you can do so in the app, online or by calling the credit card company. With most cards, you can request a statement credit, which will reduce your balance but won’t count toward your monthly minimum payment.
Some card issuers may offer to directly deposit your cash back into a linked bank account. Others may let you redeem your cash-back rewards for a gift card, which you may select through the provider’s rewards portal. Finally, some cards allow you to redeem cash-back rewards for purchases with select retailers or on travel booking websites. You can find participating merchants on your issuer’s website or may see the option to redeem rewards at checkout.
Check the value of your cash back when comparing redemption options -- sometimes redeeming your cash back for gift cards or directly with a retailer is worth less than 1 cent.
How to maximize the benefits of a cash-back credit card with no annual fee
Cash-back credit cards with no annual fee can be a great way to make a first foray into the world of rewards credit cards. To maximize your cash-back credit card, use the following strategies:
- Pay off your credit card every month. Carrying a balance can offset the value you’re getting from your cash-back rewards.
- Choose a card based on your spending habits. The best cash-back card for you will align with your regular spending. If you have a card that earns a high rewards rate in a category you don’t frequently spend in, you may find yourself overspending to earn rewards, which could hurt your finances.
- Plan purchases. If you’re using a credit card with rotating spending categories, consider timing non-essential purchases based on when you’ll earn the highest rewards.
- Pair it with another rewards card. A no-annual-fee cash-back card can work nicely with another no annual fee credit card that earns higher rewards in different categories, or a card with an annual fee that might earn better rewards.
How to apply for a cash-back credit card with no annual fee
Before you apply, first make sure you fit the credit requirements. Most cash-back cards with no annual fee require fair to good credit. If the card offers preapproval, consider checking to see if you’re likely to get approved for the card first.
When you’re ready to apply, check with your friends and family to see if they carry the same card. Some credit cards come with referral bonuses and may offer extra cash back or bonuses when you apply. If that’s the case, you’ll want to use your friend’s referral link to apply. Note: Referral bonuses are considered taxable income.
Otherwise, you can apply for the card you’re interested in using CNET’s links above or by visiting the card issuer’s website. Select “apply now” when you’re ready.
You’ll need to provide some information, including your personal contact information, Social Security number and your gross income. You may also have to list your housing expenses (rent or mortgage) or total debt.
The credit card company will check your credit score and credit report. Then one of three things will happen:
- You will be approved. Some card issuers let you use your new card right away.
- You will be denied. You can request a copy of your credit report and also ask about the reason you were denied.
- The credit card company will request more information to make a decision, and you will receive a letter in the mail with your acceptance or denial.
Other cards we researched
- Chase Freedom Unlimited®
- Capital One Quicksilver Cash Rewards Credit Card
- Petal® 1 “No Annual Fee” Visa® Credit Card
- Bank of America® Travel Rewards credit card
- Wells Fargo Autograph℠ Card
- Citi Double Cash® Card
- Bank of America® Unlimited Cash Rewards credit card
FAQs
Some cash-back credit cards have an annual fee because they offer higher reward rates or additional benefits. The annual fee helps offset the cost of the additional rewards and benefits.
Capital One SavorOne rewards has one of the highest cash-back rates you’ll find in a credit card with no annual fee.
Typically, cash-back rewards don’t expire -- but there are exceptions. It pays to read the fine print and understand the policies of your specific card. You may lose your cash-back rewards if you or your credit card company closes your account.
Methodology
CNET reviews credit cards by comparing them across set criteria. For this review, we looked specifically at the rewards system and the value of rewards to find the best cash-back credit cards without an annual fee for the majority of readers, taking into consideration that financial situations vary.
In addition to cash back rewards categories and percentages, we evaluated perks, benefits, balance transfer offers and introductory APRs. Any cards with an annual fee were disqualified from consideration based on our parameters.
For rates and fees of the Blue Cash Everyday Card from American Express, click here.
*All information about the Capital One SavorOne Cash Rewards Credit Card, Chase Freedom Flex℠, Citi Custom Cash® Card and Discover it® Cash Back has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
