Best Cash Back Credit Cards With No Annual Fee

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A no-annual-fee cash back card is a great addition to your wallet. The Wells Fargo Active Cash Card and the Capital One Savor 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.

Overall Best Cash Back Card: Wells Fargo Active Cash Card

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.

Wells Fargo Active Cash® Card

Rewards Summary
Earn unlimited 2% cash rewards
Annual Fee
$0
Regular APR
19.49%, 24.49%, or 29.49% variable
Introductory Offer
Earn $200 Cash Back
Recommended Credit
670-850 (Good to Excellent)

Best With Bonus Categories: Capital One Savor Cash Rewards Credit Card

The Capital One Savor Cash Rewards Credit Card is our top pick for a no-annual-fee cash back card with bonus categories. It offers 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services 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.

Capital One Savor Cash Rewards Credit Card
Credit Card logo for Capital One Savor Cash Rewards Credit Card
On Issuer's Site

Rewards Summary
Earn 1%–8% cash back
Annual Fee
$0
Regular APR
19.74%–29.74% variable
Introductory Offer
Earn $250 cash back
Recommended Credit
670–850 (good to excellent)

Best American Express Card With No Annual Fee: American Express Cash Magnet® Card

mglogo icon
NOTE

As of Sept. 25, 2024, the American Express Cash Magnet® Card is no longer accepting applications, according to American Express. Existing cardholders can continue using their cards without any changes. American Express confirmed that current users will not be affected.

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.

American Express Cash Magnet® Card

Rewards Summary
Earn 1.5% cash back
Annual Fee
$0
Regular APR
18.99% – 29.99% variable
Introductory Offer
Earn $150 statement credit
Recommended Credit
670–850 (Good to Excellent)

Best for Fair Credit: Citi Double Cash®

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.

Citi Double Cash® Card

Rewards Summary
Earn 1%–5% cash back
Annual Fee
$0
Regular APR
18.49% - 28.49% variable
Introductory Offer
Earn $200 Cash Back
Recommended Credit
670-850 (Good to Excellent)

Best Co-Branded Card: Costco Anywhere Visa® Card by Citi

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.

Costco Anywhere Visa® Card by Citi

Rewards Summary
Earn 1%–4% cash back
Annual Fee
$0
Regular APR
19.74% - 27.74% variable
Introductory Offer
No current offer
Recommended Credit
740-850 (Excellent)

Are No-Annual-Fee Cards Right for You?

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.

When an Annual Fee Is Worth It

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.

Category
Annual Spending
Wells Fargo Active Cash
Savor
Blue Cash Preferred

Groceries

$5,703

$114.06

$171.09

$342.18

Dining

$3,936

$78.72

$118.08

$39.36

Gas

$3,103

$62.06

$31.03

$93.06

Phone, Internat & Cable, Streaming

$2,810

$56.20

$84.30

$36.34

All others

$14,540

$290.80

$147.48

$149.90

Best Cards to Pair With No-Annual-Fee Cash Back Cards

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:

Blue Cash Preferred by American Express

The Blue Cash Preferred® Card excels in specific spending categories, offering substantial rewards. By using this card, you get to earn:

  • 6% cash back at U.S. supermarkets (up to $6,000 per year, then 1%)
  • 6% cash back on select U.S. streaming subscriptions
  • 3% on U.S. gas stations
  • 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses, and more.
  • 1% on all other categories
  • Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout

Although it has a $95 annual fee ($0 intro annual fee for the first year), spending $133 monthly at supermarkets covers this cost. Pairing it with a no-annual-fee card maximizes your rewards by covering all other purchases.

Credit Card logo for Blue Cash Preferred® Card From American Express
MoneyGeek Rating
4.3/ of 5
On Issuer's Site
Rates & Fees
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FAQ About No-Annual-Fee Cash Back Credit Cards

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.

How do I maximize the benefits of a cash back credit card with no annual fee?

Are there any hidden costs associated with cash back credit cards with no annual fee?

Can I still qualify for a cash back credit card with no annual fee if I have average credit?

Do cash back credit cards with no annual fee offer sign-up bonuses?

Can I lose the cash back that I've earned on a no-annual-fee card?

How We Rank Our Cards

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.

All information about the American Express Cash Magnet Card has been collected independently by Moneygeek.com. The issuer did not provide the content, nor is it responsible for its accuracy. The American Express Cash Magnet Card is no longer available through Moneygeek.com.

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.

About Doug Milnes, CFA


Doug Milnes, CFA headshot

Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.

Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.


*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
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