Cash back credit cards are my favorite types of rewards credit cards. I especially love the best cash back credit cards with no annual fee below. 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.
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
Here are the best cash back credit cards with no annual fee today.
1) Capital One Quicksilver Cash Rewards Credit Card
Simple and straightforward, the Capital One Quicksilver Cash Rewards credit card 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.
- 1.5% cash back on every purchase
- Rewards are unlimited, ie no spending caps
- Zero foreign transaction fees
- No annual fee
- Get a $200 cash bonus reward if you spend $500 in the first 3 months
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.
- Earn a $200 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
- No annual fee
- Redeem cash back with no minimums
Capital One SavorOne Cash Rewards Credit Card
If you are looking for a second or third cash back credit card, the Capital One SavorOne Cash Rewards Credit Card is it. This is a tiered cash back rewards credit card by Capital One that offers an impressive 3% 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 3% cash back percentage is the highest percentage we've seen today.
- Unlimited 3% cash back on dining and entertainment
- 2% cash back at grocery stores with no spending caps, excludes superstores
- Unlimited 1% cash back on gas and all other purchases
- Get a $200 cash rewards bonus if you spend $500 in the first 3 months
- No annual fee
Take Advantage Of Cash Back Credit Cards With No Annual Fees
If you're going to spend money, you might as well spend money with one of the best cash back credit cards with no annual fee. 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 SavorOne credit cards.
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Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Rates and terms are subject to change without notice. Rates from Lenders may differ from prequalified rates due to factors which may include, but are not limited to: (i) changes in your personal credit circumstances; (ii) additional information in your hard credit pull and/or additional information you provide (or are unable to provide) to the Lender during the underwriting process; and/or (iii) changes in APRs (e.g., an increase in the rate index between the time of prequalification and the time of application or loan closing. (Or, if the loan option is a variable rate loan, then the interest rate index used to set the APR is subject to increases or decreases at any time). Lenders reserve the right to change or withdraw the prequalified rates at any time.
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 $350,000 a year in passive income.
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.
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Disclosure: Credible Operations, Inc. NMLS# 1681276, “Credible.” Not available in all states. www.nmlsconsumeraccess.org.
Disclosure: Credit card terms and features are subject to change.