Best Cash Back Credit Cards With No Annual Fee

A no-annual-fee cash back card is a great addition to your wallet. The Wells Fargo Active Cash Card and the Capital One SavorOne Cash Rewards Credit Card lead our rankings for the best cash back offers without an annual fee, ensuring all your earnings contribute to your savings rather than offsetting costs.

When selecting a no-annual-fee card, consider factors like the cash back rate, any introductory offers and additional benefits like purchase protection and ease of redemption. Also, consider your spending habits and how they align with the card's rewards structure to maximize your benefits.

The Wells Fargo Active Cash Card tops our list of the best cash back cards with no annual fee, offering unlimited 2% cash back on all purchases. Thanks to a 15-month 0% introductory offer on purchases and balance transfers, then a variable APR of 20.24%, 25.24%, or 29.99% thereafter.

These also benefit anyone planning to carry a balance or make a large purchase. However, the 3% foreign transaction fee makes it less suitable for international use but remains valuable for domestic spending.

The Capital One SavorOne Cash Rewards Credit Card is our top pick for a no-annual-fee cash back card with bonus categories. It offers 3% back on grocery stores, dining and entertainment and 1% back on all other purchases. This card is best suited for those who focus their spending on these areas rather than at superstores or across various categories. Get this card if your regular spending aligns well with its bonus categories.

If you're looking for an American Express card without an annual fee, we recommend the American Express Cash Magnet®️ Card. It offers unlimited 1.5% cash back on all purchases, a 0% introductory APR period on balance transfers and purchases with a 19.24%–29.99% variable APR after that, plus a $150 statement credit bonus.

For those with varied spending habits, the Cash Magnet® Card is an excellent option. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout. However, the Blue Cash Everyday® Card is a strong alternative, particularly for those who prefer category-specific cash back rewards.

The Citi Double Cash® credit card is an excellent option for those with fair credit seeking a no-annual-fee cash back card. It provides a solid 2% unlimited cash back on all purchases and features an 18-month 0% introductory APR on balance transfers, then a variable APR of 19.24%–29.24% after that, which is the longest intro offer on our list. Get this card if you want to maximize rewards on everyday spending while managing existing debt efficiently.

If you’re a Costco loyalist, the Costco Anywhere Visa® Card by Citi offers significant value. It offers Costco members no annual fee and features 1% to 3% cash back on eligible purchases, with an exceptional 4% on gas and EV charging. While cash back can only be redeemed annually and the reward certificate expires, Costo regulars will find this card a valuable addition to their wallet.

Choosing a no-annual-fee credit card works if you have lower spending, want to avoid extra costs or are building credit. These cards often offer competitive rewards without the pressure to maximize benefits to justify a fee, providing greater flexibility.

While no-annual-fee cards may offer lower cash back rates compared to fee-based cards like the Blue Cash Preferred by American Express, they ensure that every bit of cash back you earn is a net gain, not a rebate on a fee you paid upfront. Compare their rewards and perks with those of fee-based cards to ensure they align with your spending habits and financial goals.

An annual fee is worth it if the cash back rewards exceed the fee. High spenders who earn substantial cash back in the card’s categories can quickly offset the cost. If your spending aligns with the card's higher cash back rates, the rewards can surpass the annual fee, making it a valuable choice.

Here’s a side-by-side comparison of the cash back you can earn from annual fee versus no annual fee cards, based on how much an average American household spends annually.

Cash back cards with annual fees typically offer higher reward rates compared to no-annual-fee cards, making them worthwhile if you spend significantly in certain categories. For example, if you frequently spend on gas and groceries, selecting a card with elevated cash back rates in these areas can help offset the annual fee. Moreover, cards with annual fees often come with larger welcome bonuses and more valuable perks.

Here are some cards that pair well with no-annual-fee cards to maximize your rewards:

We address your questions about choosing the best cash back credit cards with no annual fee, helping you make an informed decision that can enhance your financial strategy.

Our thorough rating system also considers the following factors in order of importance:

• Effective Reward Rate (50%): Our evaluation primarily focuses on the rewards earning potential of the card. The effective reward rate is determined by applying our average consumer spending model and factoring in the card's cash back rates, including any spending limits.
• Welcome offer (10%): We rate cash back credit cards by considering welcome offers, and weighing spending requirements against the value of the rewards received.
• Annual Fees (10%): Annual fees are evaluated for all cards in our database and assigned a score from 5 to 1, with 5 indicating no annual fees.
• Intro Purchase (5%): We reviewed the benefits of introductory purchase APR offers. Cards with longer introductory APRs on purchases get higher scores.
• Regular APR (5%): We examined the long-term cost of carrying a balance.
• Recommended Credit (5%): We considered the accessibility of the card based on credit requirements.
• Issuer Satisfaction (5%): This is based on J.D. Power's issuer satisfaction study. Higher satisfaction ratings get higher scores.
• Penalties: (5%): Cards that have late payment fees or penalty APRs get lower scores.
• Foreign Transaction Fees (5%): Foreign transaction fees impact rankings negatively; cards without these fees are preferred for international spending and convenience.

For rates and fees of the American Express Cash Magnet® Card, please click here.

For rates and fees of the Blue Cash Preferred by American Express, please click here.