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The 10 Best Highest Cash Back Credit Card With No Annual Fee

December 17, 2022 / 15 minutes of reading

A cash back credit card with no annual fee is a form of rewards credit card. Cash back credit cards deliver a certain amount of money back to the customer for each qualifying purchase, unlike other rewards cards, that provide miles or redeemable points on purchases.

Cash back is similar to a rebate in that it gives you money back. Some consumers may find the simplicity of a cash back rewards card appealing, as reward points are frequently subject to numerous restrictions on how they can be used.

The amount of cash back you earn back per transaction is determined by your credit card’s terms and the sort of purchase you make. Let’s assume you spend $500 per month at a rate of 5% cash back. This equates to $25 per month for card loyalty ($500 X .05 = $25). There are sometimes spending requirements, so make sure you review a card’s terms before making an application.

Table Of Contents
  1. Types Of Cash Back Credit Card
  2. Advantages And Disadvantages Of Cash Back Credit Card With No Annual Fee
  3. Factors to Consider When Choosing A Cash Back Credit Card With No Annual Fee
  4. Who Should Acquire A Cash Back Credit Card With No Annual Fee
  5. The 10 Best Highest Cash Back Credit Card With No Annual Fee
  6. Best Cash Back Credit Cards Compare Table
  7. Most Popular Cash-Back Bonus Categories
  8. How Can You Make The Most of Your Cash Back Credit Cards With No Annual Fee
  9. Bottom Line
  10. Related Articles

Types Of Cash Back Credit Card

  1. Flat rate: This cash-back card gives you a set proportion of money back no matter what you buy with the card. 1.5% cash back is a good starting point. But certain cards provide up to 2% or more in return.
  2. Tiered: This cash-back card provides a greater return in select categories of expenditure, such as food or gasoline, and are usually 1 percent on everything else. You have the option of choosing which categories get the better rewards with certain cards.
  3. Rotating categories: The cards provide a hefty cash-back percentage, usually 5%, in specified areas that rotate every three months. Are usually 1% on everything else. The bonus categories must be opted in or activated online every quarter.

Advantages And Disadvantages Of Cash Back Credit Card With No Annual Fee

Advantages

  • The most valuable currency for rewards: Cash is the most versatile currency. Nobody can alter its value, and you may use it in any merchant. You won’t have to wait years to acquire enough points or miles for a free hotel stay or flight as you would with a travel card.
  • Simplicity: Cash-back cards are typically much easier to utilise and understand than other kinds of cards, leaving you unsure if you’re receiving the most bang for your buck.
  • Low or no annual fees: If you want better cash-back rewards, there are a lot of alternatives available with no annual charge or reasonable costs.
  • Bonus requirements with low penalties: It’s usually simpler to fulfil the minimum spend requirement for a sign-up offer on cash-back cards than travel credit cards. 

Disadvantages

  • Sign-up bonuses are typically quite modest: Bonuses can range from nothing to about $200, and travel-card bonuses can be as much as $500.
  • There are no large gains to be made: Travel credit cards can produce significant value, far exceeding the benefit of any cash-back card.
  • It is not suitable for holding a monthly balance: The introduction period for some cash-back cards is excellent, but most are not. If you have a credit card balance, you’ll pay more in interest than you get in cash-back rewards.
  • Few perks: You won’t find anything of comparable value as a reward for signing up for free checked luggage or TSA PreCheck or early check-ins at hotels.
  • Transaction fees on foreign transactions: Some of the cash-back cards charge a fee for each purchase you make in another country. Fees like these are more uncommon on luxury and travel cards.

Factors to Consider When Choosing A Cash Back Credit Card With No Annual Fee

The best cash back credit card is one that suits your lifestyle the most. Someone else’s ideal cash back card may not be yours. When you’ve figured out how much you spend in numerous locations and what additional card benefits could be useful, it’s time to compare the credit cards and select the best that fits you. During your evaluations, consider the following:

Fees

Are there annual charges for using the card? What is the cost of the card if you want to receive enough cash back to cover the annual charge? Is it more expensive than a comparable card that does not have an annual fee? What other costs are there likely to be? 

APR (Annual Percentage Rate)

The interest rates of credit cards are typically greater than those on other forms of financing. If you’re not sure whether you will have the ability to pay your credit card every month, it may not be the best option for you. If you’re looking for a credit card but see the inability to make the payments, keep an eye on how much interest you’ll pay on balance transfers and purchases.

Cash back rates

Rates for money back differ for every card. Choose a card that will reward you in the areas of your life where you spend the most money.

Bonus categories

Are there any bonus categories that you can take advantage of? If 3% cash back is offered by the card on groceries and gas, but you prefer to eat out and ride the subway, it isn’t the right cash back card for you.

Rewards and redemption

Is it possible to utilize the cash back in the manner you desire? Cash back credit cards typically give you a variety of options for redeeming whatever you earn, such as a savings transfer, a check, a statement credit, or investment account. Some cards appear to be more stringent than others. Therefore, it is important to know how to use your hard-earned points.

Who Should Acquire A Cash Back Credit Card With No Annual Fee

People who want to earn rewards without having to worry about hefty annual costs or complicated reward systems may benefit from cash back credit cards. If you’re looking for a credit card with no annual fee, look into cash back cards. Consider one if:

  • Each month, you pay off the entire outstanding debt: A low-interest credit card is typically a better choice for revolvers (those who pay their bills on time).
  • You spend significant amount of money on daily necessities: A number of credit cards come with attractive cash back incentives on everything you buy, such as a flat-rate on all the purchases or bonus rewards for household costs like gasoline or food.
  • You’re looking for a way to cut costs: No annual fee, flat rate cash back credit cards are ideal for people who don’t need to concern themselves with recouping annual charge or optimizing points.

The 10 Best Highest Cash Back Credit Card With No Annual Fee

Highest Cash Back Credit Card With No Annual Fee

1. Wells Fargo Active Cash Card

  • Reason for picking it: This Cash Card allows you to get the most out of your everyday expenditures with its infinite 2% cash back. A $200 introductory bonus cash reward is provided after spending $1000 in the first 3 months of membership.
  • Who should fill out an application: This Wells Fargo unlimited cash back card is a fantastic option for anybody looking for an easy approach to earn points on regular purchases.
There are no expiration dates on your cash rewards.
There are no seasonal categories to manage.
There is no need for enrollment.
If you stay on a regular APR for more than two years, your rate could change significantly.
If you carry a balance past the end of the introductory APR period, you may be charged high interest costs.

2. Citi Custom Cash Card

  • Reason for picking it: The Cash Card is a great choice for those who want to earn lots of money on their spending every month. Every billing cycle, you may receive up to 5% cash back in your top qualifying purchase category, up to the first $500 spent. 
  • Who should fill out an application: If you want to make extra money by spending on your Citi card, but do not want to worry about changing your spending habits from month to month and thus not gaining interest on your purchases, this is the option.
The cash card gives you a $200 cash back bonus after spending $750 in the first 3 months.
You will receive a 15-month 0 percent intro APR on both transfers and purchases, which is not something you get with most credit cards.
The billing cycle of $500 on your 5% cash back restricts the card’s usefulness.
When you take advantage of the offer, you’ll be charged a hefty 5% balance transfer charge.

3. Chase Freedom Unlimited

  • Reason for picking it: In addition to higher rewards on select standard everyday purchases, you will earn 1.5% cash back on all your purchases, plus 5% cash back in useful every-day categories like grocery store purchases totaling up to $12,000 within the first year.
  • Who should fill out an application: This card is a good choice for people seeking to earn rewards on their everyday expenditures, with substantial bonuses for purchasing Ultimate Rewards travel, drugstore purchases, and dining.
The new rewards system, which has been redesigned and updated, makes it simple to collect points.
There are no limits on cash back, and points don’t lose value over time.
There is no yearly bonus, but that doesn’t deter many given the lack of rewards restrictions and competitive return rate.

4. Capital One SavorOne Cash Rewards Credit Card

  • Reason for picking it: The credit card is now offering a 3% cash back bonus on grocery store purchases, entertainment, dining, and popular streaming services and a cash back of 1% on all purchases.
  • Who should fill out an application: It is a great way for foodies to save money on meals, entertainment expenditures, and grocery store purchases. The lack of spending restrictions in these categories will be appreciated by big spenders.
There is no annual charge for the card.
There are no restrictions on cash back and no expiration dates on rewards.
The card provides greater cash back of 4% on popular streaming services, dining, and entertainment, 3% on grocery stores, and 1% on other purchases but has a $95 annual fee.

5. Blue Cash Preferred Card from American Express

  • Reason for picking it: This card provides excellent cash back rates for purchases at United States supermarkets and 6% back on several United States streaming services, making it an excellent choice for those who want to eat-in and watch a movie at home.
  • Who should fill out an application: The Credit Card is a great choice for anyone with a daily commute. It offers high cash back rates on food and gas, making it ideal for foodies, families, and anybody with a regular mode of transportation.
United States supermarkets have a 6% cash back rate.
There are no rotating categories or signups to consider, thus rewards can be spent on past purchases.
The $95 annual fee (starting for the first year, there is a $0 introductory annual fee) may be off-putting to some, but it is worth keeping in mind the high return rates.
In exchange for a no annual fee, Blue Cash Card provides lower rewards.

6. Discover it Cash Back

  • Reason for picking it: You can use your Discover it Cash Back to get a large 5% cash back bonus on every day, practical categories ($1,500 each quarter after enrolment, then 1%) that change each quarter.
  • Who should fill out an application: There’s a lot of potential to maximize rewards if you’re clever with your spending enough to take advantage of Discover it’s rotating bonus categories.
It has no foreign transaction charges and no fee for missed payments.
All of your cash back earnings will be automatically linked after one year if you use Discover.
The maximum cash back rate of 5% is only available on combined purchases of $1,500 per quarter.
You don’t have a say in what bonus categories you’ll get since Discover determines them each year.

7. Bank of America Customized Cash Rewards credit card

  • Reason for picking it: You may change your bonus category on the Bank of America Customized Cash Rewards credit card once per month, which gives you greater control over your rewards. The following are some of the most popular bonuses: travel, gas, internet shopping, pharmacy stores, eating and house renovation/furniture stores.
  • Who should fill out an application: For moderate spenders who like to alter their bonus categories from time to time, this basic cash back card has a lot of freedom. Given the rewards boost potential, those with a Bank of America account should consider this type of card.
You’ll get 3% cash back on your choice category, 2% cash back at wholesale clubs and grocery stores and wholesale clubs.
A sign-up bonus is available.
You get $200 after spending $1000 in the first 90 days.
There’s a $2,500 quarterly spending limit in 2% and 3% reward categories for every quarter.
The lack of travel perks and the 3% foreign transaction charge might deter frequent travelers.
Cash back is the only real reward.

8. Chase Freedom Flex

  • Reason for picking it: Chase Freedom Flex allows you to earn 5% cash back on a travel, which can be a lot of money. You may also earn 5% cash back on qualifying purchases in the rotating categories, 3% on dining at restaurants and drugstore purchases.
  • Who should fill out an application: Chase Ultimate Rewards is a credit card that gives its users some of the highest cash back rates available. Frequent travelers may find that Chase Ultimate Rewards offers them significant advantages.
There is no annual fee.
Sign-up bonuses are quite good.
There’s a generous incentive to get you started: earn $200 after spending $500 in your first 3 months.
If tracking all of the cash back categories and regulations that go with each one makes your head spin, you should seek another cash back card.
Maintaining a close eye on your spending and enrolling in the 5% category bonus might require some effort and is not for everyone.

9. Capital One Quicksilver Cash Rewards Credit Card

  • Reason for picking it: This fantastic no-fee card offers unlimited 1.5% cash back on all purchases and has no annual fee for those who want to keep it simple.
  • Who should fill out an application: The fact that the card offers unlimited 1.5% cash back on all purchases has the ability to provide significant value for anybody looking for a pared-down cash back card.
The account’s rewards are permanent.
There are no restrictions on how much you may earn.
There is no requirement to achieve a minimum before receiving cash back.
Unlimited rewards are a tempting offer, but keep in mind that the Citi Double Cash offers greater flat-rate cash back of 2%.

10. Citi Double Cash Card

  • Reason for picking it: The Citi Double Cash has competitive rewards rates among flat-rate cash back cards and is a clear standout among flat-rate cash back cards that do not charge an annual fee. It offers 1% on all purchases.
  • Who should fill out an application: This straightforward flat-rate cash card would be a great fit for anyone who prizes freedom, especially for prevailing Citi customers that have already earned ThankYou points.
ThankYou points may be earned through a variety of methods, including spending at hotels and gas stations.
ThankYou points, which are valued at $1 for every point earned, can be redeemed for gift cards, travel purchases, and other items.
There is no sign-up offer.
if the card isn’t used in a year, it will expire. You’ll be charged a balance transfer charge of 3% or $5.

Best Cash Back Credit Cards Compare Table

Credit cardBest forRatingAnnual feeWelcome bonus
Wells Fargo Active Cash CardA cash reward of 2%3.6 / 5$02% cash rewards
Citi Custom Cash CardMaximization of cash back4.1 / 5$05% cash bonus
Chase Freedom UnlimitedAPR introductory on purchases4.5 / 5$03% cash back on dining
Capital One SavorOne Cash Rewards Credit CardEntertainment and dining4.0 / 5$03% on entertainment, at grocery shops, and dining
Blue Cash Preferred Card from American ExpressUnited States supermarkets/groceries4.0 / 5Intro yearly fee of 0% for the 1st year then$956% at United States supermarkets
Discover it Cash BackCash back4.5 / 5$0Rotating categories of 5%
Bank of America Customized Cash Rewards credit cardCash back categories that are flexible4.2 / 5$03% on your choice’s category
Chase Freedom FlexCash back on qualified travel4.2 / 5$0Rotating categories of 5%
Capital One Quicksilver Cash Rewards Credit CardUnlimited rewards3.0 / 5$01.5% cash back for each purchase
Citi Double Cash CardA flat-rate cash back3.5 / 5$02% cash bonus

A number of cash-back cards offer a higher reward rate for selected transactions. This is specifically based on the location you use the card, not what you purchase with it. All reward cards, with the exception of flat-rate ones, provide this feature.

Bonus categories are typically categorized as follows:

  • Supermarkets: This reward category applies to anything you purchase at a grocery store, whether it’s called “groceries” by the bank. The type of shop determines the rewards, not the specific goods purchased. As a result, it includes everything bought in a supermarket.
  • Restaurants: This usually embraces everything from fast food to pizza delivery, as well as fine dining with white tablecloths. Your entire restaurant cost is eligible for accelerated benefits, including the server’s gratuity.
  • Gas stations: It is said to be “gas” and is usually used at conventional gasoline service stations like BP, Mobil, and Shell. It seldom applies to petrol stations connected with warehouse clubs or supermarkets. It frequently tracks purchases in the neighboring convenience store, though some cards only track gasoline purchased at the pump.

How Can You Make The Most of Your Cash Back Credit Cards With No Annual Fee

  • Make the most of your categories of expenditure: Maximizing your bonus categories is one of the simplest methods to get the most out of your cash-back credit card. If you got an American Express Blue Cash Preferred Card, make sure it’s in the first position on all trips to the United States supermarket for a substantial 6 percent cash back at the end of your purchase.
  • Make a complete payment on your card and avoid penalties: Even if you have a credit card with excellent terms, it’s critical to never carry a balance on your card. However, if you need to make the most of your cash back credit card and assure that you’re getting the most out of your money, leaving a balance on your account is never advised.
  • Cash-back incentives with extra money back: Issuers may provide extra cash back for specific purchases. Chase Offers and Amex Offers are likely examples of such deals, as eligible cardholders may choose to participate in earnings that aren’t typically available on that particular card.
  • If you’re a low-spending individual, get a no-annual-fee card: Obtaining a credit card with an annual charge may appear frightening, but the higher cash-back rates generally outweigh the cost. If you won’t be putting much money on your card throughout the year, you won’t be able to take full advantage of a card with an annual fee.

Bottom Line

When it comes to cash back or miles, the credit card game is not all or nothing. You may have a card for each or one that does them both. My cash back cards have aided me in offsetting the cost of travel expenditures that miles and points may not cover.

Furthermore, there is no argument that earning cash back is easier and more straightforward to quantify something that novices and casual travelers can both relate to.

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