If you’re looking for a credit card that can save you money on your everyday purchases, a cash back credit card is a great option. Cash back credit cards give you a percentage of your spending back as rewards, which you can then redeem for cash, statement credits, or travel.
And the best part is, there are many great cash back credit cards available with no annual fee. This means that you can start earning rewards without having to pay anything extra.
List of the 10 best highest cash back credit cards with no annual fee
1. Chase Freedom Unlimited®
The Chase Freedom Unlimited® card offers 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% cash back on dining at restaurants and takeout and delivery, 1.5% cash back on all other purchases, and new cardholders earn a $200 bonus after spending $500 on purchases in the first 3 months from account opening.
2. Citi® Double Cash Card
The Citi® Double Cash Card offers 2% cash back on all purchases – 1% when you buy and 1% as you pay.
3. Discover it® Cash Back
The Discover it® Cash Back card offers 5% cash back on up to $1,500 in quarterly rotating categories each quarter when you activate, then 1% on all other purchases. Plus, at the end of your first year, Discover will match all the cash back you’ve earned up to $75, automatically.
4. Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card offers unlimited 2% cash back on all purchases.
5. Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card offers unlimited 3% cash back on dining, entertainment, groceries, and select streaming services, 1% cash back on all other purchases.
6. Citi Custom Cash® Card
The Citi Custom Cash® Card offers 5% cash back on your top eligible spend category each month (up to $500 per month), 1% cash back on all other purchases.
7. Bank of America® Customized Cash Rewards credit card
The Bank of America® Customized Cash Rewards credit card offers 3% cash back on a category of your choice each quarter (up to $2,500 per quarter when you activate, then 1% on all other purchases).
8. Alliant Cashback Visa® Signature Credit Card
The Alliant Cashback Visa® Signature Credit Card offers 2.5% cash back on the first $10,000 in purchases each year, then 1.5% cash back on all other purchases.
9. PenFed Power Cash Rewards Visa Signature® Card
The PenFed Power Cash Rewards Visa Signature® Card offers 2% cash back on all purchases.
10. US Bank Altitude® Go Visa Signature® Card
The US Bank Altitude® Go Visa Signature® Card offers 4% cash back on dining, 2% on groceries and gas, and 1% on all other purchases.
How to choose the best cash back credit card for you
When choosing a cash back credit card, there are a few things you should keep in mind:
- Your spending habits: What types of purchases do you make most often? Look for a card that offers high rewards on the categories where you spend the most money.
- The sign-up bonus: Many cash back credit cards offer a sign-up bonus to new customers. This can be a great way to earn a quick boost of rewards.
- The annual fee: Some cash back credit cards charge an annual fee. Consider whether the rewards you’ll earn outweigh the cost of the annual fee.
Tips for maximizing your cash back rewards
Once you’ve chosen a cash back credit card, there are a few things you can do to maximize your rewards:
- Pay your bill on time and in full each month: This will avoid late payment fees and interest charges, which can eat into your rewards.
- Take advantage of sign-up bonuses: Many cash back credit cards offer a sign-up bonus to new customers. Be sure to meet the spending requirements to earn the bonus.
- Use your card for all of your purchases: The more you use your card, the more rewards you’ll earn. Just be sure to pay your bill on time and in full each month to avoid interest charges.
- Take advantage of rotating bonus categories: Many cash back credit cards offer rotating bonus categories, where you can earn more rewards on certain types of purchases each quarter.
- Use a cash back app: There are many cash back apps available that can help you earn even more rewards on your purchases. Some cash back apps offer sign-up bonuses, while others offer rewards for shopping at specific retailers or dining at certain restaurants.
- Take advantage of issuer shopping portals: Many credit card issuers offer shopping portals where you can earn additional rewards on your purchases. Simply click through the shopping portal before you make a purchase and you’ll earn cash back on your purchase.
- Redeem your rewards wisely: Once you’ve earned cash back rewards, you can redeem them for cash, statement credits, or travel. Consider how you want to use your rewards before you redeem them. For example, if you’re planning a vacation, you may want to redeem your rewards for travel.
How To Apply for a Cash-Back Credit Card With No Annual Fee
To apply for a cash-back credit card with no annual fee:
- Compare different cards: There are many different cash-back credit cards available with no annual fee, so it’s important to compare different cards to find the one that best suits your needs. Consider the rewards structure, interest rate, and any other fees or restrictions.
- Check your credit score: Some cash-back credit cards require a good or excellent credit score to qualify. You can check your credit score for free at many different websites.
- Gather your required documents: When you apply for a credit card, you will need to provide some basic information, such as your name, address, and Social Security number. You may also need to provide proof of income and employment.
- Submit your application: Once you have gathered all of the required information, you can submit your application online or over the phone.
- Wait for a decision: Once you have submitted your application, the credit card issuer will review your information and make a decision. You should receive a decision within a few days or weeks.
Pros and Cons of using cash back credit cards
- Earn rewards on everyday purchases
- Flexible redemption options
- No annual fee (on many cards)
- Build your credit
- Tempted to overspend
- High interest rates (if you don’t pay your bill on time and in full)
- Annual fee (on some cards)
- Rewards caps (on some cards)
Cash back credit cards with no annual fee can be a great way to save money on your everyday purchases. However, it’s important to use them responsibly and to be aware of the potential drawbacks, such as the temptation to overspend and high interest rates.
Frequently Asked Questions (FAQ)
Is 5% cash back on a credit card good?
Yes, 5% cash back on a credit card is very good. It is one of the highest rates of cash back that you can find. However, it is important to note that 5% cash back is often only offered on certain categories of purchases, such as groceries or gas.
What credit card does not charge annual fees?
There are many credit cards that do not charge annual fees. Some popular options include the Chase Freedom Unlimited® card, the Discover it® Cash Back card, and the Capital One Quicksilver Cash Rewards Credit Card.
Is there a downside to cash back credit cards?
Yes, there are a few potential downsides to cash back credit cards. One downside is that some cash back credit cards have rewards caps, which means that there is a limit to how much cash back you can earn each year.
Which bank credit card gives highest cash back?
The bank credit card that gives the highest cash back depends on your spending habits and your credit score. Some popular options include the Chase Freedom Unlimited® card, the Discover it® Cash Back card, and the Capital One SavorOne Cash Rewards Credit Card. These cards offer high rates of cash back on a variety of categories of purchases.
Are cashback cards worth it?
Yes, cashback cards can be worth it if you use them responsibly. If you only spend money that you can afford to pay off each month and you pay your bill on time and in full, then you can earn rewards without getting into debt.
What is the strongest credit card in the world?
There is no one “strongest” credit card in the world. The best credit card for you will depend on your individual needs and financial situation. However, some popular options that are considered to be “strong” credit cards include the Chase Sapphire Reserve® card, the American Express® Platinum Card, and the Citi® Double Cash Card.
What is a good amount of cash back for a credit card?
A good amount of cash back for a credit card is between 2% and 5%. However, there are some cash back credit cards that offer even higher rates of cash back on certain categories of purchases.
Are there any credit cards that give 3% cash back?
Yes, there are many credit cards that give 3% cash back on certain categories of purchases. Some popular options include the Wells Fargo Active Cash® Card, the Capital One SavorOne Cash Rewards Credit Card, and the Blue Cash Everyday® Card from American Express.
How much should I spend on a $10000 credit card?
You should only spend as much on a $10000 credit card as you can afford to pay off each month. It is important to avoid carrying a balance on your credit card, as this can lead to interest charges and damage to your credit score.
What credit card gives you 3% back?
There are many credit cards that give you 3% back on certain categories of purchases. Some popular options include the Wells Fargo Active Cash® Card, the Capital One SavorOne Cash Rewards Credit Card, and the Blue Cash Everyday® Card from American Express.