Cash back credit cards are my favorite types of rewards credit cards. I’ve got a personal cash back credit card and a business cash back credit card that I use for all my spending.
Credit cards with a focus on cash back instead of travel rewards or store-specific rewards are way better. When you get cash back, you get to use the cash on anything you want. Further, you can use your cash back towards paying off your monthly credit card bill, which is a must for all credit card users.
If you’re frugal, like I am, you don’t want to pay an annual fee for your cash back credit card. Therefore, let me ranking my favorite three cash back credit cards with no annual fees.
Disclosure: Financial Samurai has partnered with CardRatings for our coverage of credit card products. Financial Samurai and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
Cash Back Rewards Credit Cards Basics
Before I share with you my top three favorite cash back credit cards with no annual fees, let’s first do a quick overview of cash back credit card basics.
Types Of Cash Back Percentages
Flat Rate Cash Back Percentage – These are the simplest because they offer a set percentage of cash back such as 1% on any and all purchases.
Tiered Cash Back Percentage – Cash back percentage rewards on these cards vary by purchase categories, ex. 1.5% on gas and 6% on groceries.
Rotating Cash Back Percentage – These are like a combination of flat rate and tiered cards. They offer a flat rate on all purchases plus each quarter a specific category is designated for bonus cash back percentages. Caps and qualifications may apply.
Cardholder’s Cash Back Percentage Choice – A mix of tiered and rotating types, these credit cards offer cardholders a little extra flexibility. For example, you can choose which categories you want to earn extra rewards. There are often base percentages per category and spending caps limits.
Annual Fee – The nice thing about many popular cash back rewards credit cards is you can find great cards with no annual fee. Occasionally some cards will have annual fees, so check the terms. The best cash back credit cards have no annual fees.
The Best Cash Back Rewards With No Annual Fee
1) Capital One® Quicksilver® Cash Rewards Credit Card
Simple and straightforward, the Capital One Quicksilver offers flat rate cash back rewards. Cardholders earn 1.5% cash back on all purchases without any spending caps. Capital One is truly the leader in cash back rewards credit cards.
Where most cash back credit cards have a Flat Rate Cash Back Percentage of 1%, Capital One Quicksilver offers a 50% higher rate at 1.5% for everything with no spending caps. I use Capital One Quicksilver for my personal cash back credit card.
Key Benefits
- 1.5% cash back on every purchase
- Rewards are unlimited, ie no spending caps
- Zero foreign transaction fees
- No annual fee
- Get a $150 cash bonus reward if you spend $500 in the first 3 months
Read more and learn how to apply
Chase Freedom Unlimited
If you’re looking for a flexible cash back rewards credit card that isn’t complex, this is it. The Chase Freedom Unlimited credit card offers great flat rate rewards. I use the Chase Freedom Unlimited for our business credit card and it’s been great.
Key Benefits
- Earn a $150 bonus after you spend $500 in the first 3 months after opening an account
- Get unlimited 1.5% cash back on all purchases
- Introductory 0% APR for first 15 months on purchases and balance transfers (3% balance transfer fee applies)
- No annual fee
- Redeem cash back with no minimums
Read more and learn how to apply
Capital One® Savor® Cash Rewards Credit Card
If you are looking for a second or third cash back credit card, the Capital One® Savor® Cash Rewards Credit Card is it. This is a tiered cash back rewards credit card by Capital One that offers an impressive 4% on dining and entertainment without any spending caps.
Those of you who like to enjoy life should consider getting this card and using it every time you’re out and about. A 4% cash back percentage is the highest percentage we’ve seen today.
Key Benefits
- Unlimited 4% cash back on dining and entertainment
- 2% cash back on groceries with no spending caps
- Unlimited 1% cash back on gas and all other purchases
- Get a $300 cash rewards bonus if you spend $3,000 in the first 3 months
- $0 waived annual fee for the first year
Read more and learn how to apply
Take Advantage Of Cash Back Credit Cards With No Annual Fees
If you’re going to spend money, you might as well spend money on a cash back credit card. Not only do you get an interest-free loan for 30 days if you pay it off, you also get buyer’s protection, peace of mind, and rewards.
Take advantage of cash back credit cards to not only save money but also earn money at the same time. You can’t go wrong going with the Chase Freedom Unlimited credit card or one of Capital One‘s popular cash back cards such as the Capital One Quicksilver or Capital One Savor credit cards.
About the Author: Sam worked in investment banking for 13 years at Goldman Sachs and Credit Suisse. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $250,000 a year in passive income. His main passive income focus is on real estate crowdfunding to take advantage of cheaper valuations and higher cap rates in the heartland. He spends time playing tennis and taking care of his family.
Financial Samurai was started in 2009 and is one of the most trusted personal finance sites on the web with over 1.5 million pageviews a month.
Disclosure: Financial Samurai has partnered with CardRatings for our coverage of credit card products. Financial Samurai and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
