The Best Cash Back Rewards Credit Cards with No Annual Fees
Deciding which type of credit card you want can be a daunting process. With thousands of different credit cards on the market each offering a different rewards program, shopping for a new credit card can be time-consuming and frustrating. I’m often approached by people asking me to recommend a credit card for them even though they haven’t determined their spending habits or the type of rewards they would like to earn. That’s why I often recommend applying for a cash back credit card with no annual fee. Cash back credit cards with no annual fee are also popular for business credit cards. Since there are currently so many cash back credit cards on the market, some with annual fees and some without, I’ve broken down my top three favorite cash back credit cards with no annual fee below.
1) Capital One Cash Rewards Card – The Capital One Cash Rewards Card is currently my favorite cash back credit card currently on the market for several reasons. First, cardholders receive a $100 cash back bonus when they spend just $500 on purchases with the card in the first three months of opening their account. Every purchase made with the card also earns the cardholders 1% cash back. What really makes the Cash Rewards Card from Capital One stand out, however, is that Capital One awards cardholders with a 50% cash back bonus at the end of each year on the cash back earned throughout the year. This means that the effective cash back rate earned throughout the year is 1.5%, which is very high. The card also offers a 0% introductory APR on both purchases and balance transfers until February of 2014.
2) Discover it Card – The Discover it Card is another great cash back credit card with no annual fee. With the Discover it Card, cardholders earn 5% cash back on purchases made in rotating spending categories throughout the year. Examples of these rotating categories include dining, gasoline, supermarkets, movies, music, home improvement stores, and more. Cardholders also receive 1% cash back on all other purchases throughout the year. In addition, the Discover it Card features a 0% introductory APR period on purchases and balance transfers for 14 months. Discover also does not charge any overlimit fees, foreign transaction fees, or pay-by-phone fees, and they will not raise your APR when if you pay late.
3) Blue Cash Everyday from American Express – The Blue Cash Everyday Card from American Express is also a fine choice for a cash back credit card with no annual fee. The card offers a $100 cash back bonus after they spend $1,000 on purchases with the card in the first three months of their account being open. In addition, the card offers cardholders 3% cash back at U.S. supermarkets (on up to $6,000 per year), 2% cash back at gas stations and department stores, and 1% cash back on any other purchase. Lastly, the Blue Cash Everyday Card from American Express offers a 0% introductory interest rate on purchases for the first 12 months that you have the card.
Keep in mind that everyone’s credit card needs vary. You should compare cash back credit cards as well as other credit cards using resources and calculators freely available on the web. There are hundreds of reviews on almost every card available, so do your homework before you apply and you will be much happier with your choice of card once you’re approved.
