Million Mile Secrets reader, Lindsay, tweeted:
I have a Chase Sapphire Preferred card, but would like to get a new card to earn cash back. Do you have any recommendations?
5 Excellent No Annual Fee Cash Back Cards
Link: Hot Deals
I know lots of folks who only use cash back cards because they don’t travel enough to benefit from miles and points rewards.
Other folks like to use cash back cards in addition to miles and points cards for non-bonus spending. For things like doctor visits, auto repairs, utility services, home improvements, and tax payments.
And many cash back cards have no annual fee! So they’re free to keep forever and can potentially help increase your credit score.
The best cash back card will depend on your spending habits. But you should consider factors like:
- Sign-up bonus
- Bonus categories (like wholesale clubs, Amazon, etc.)
- Minimum threshold for getting cash back
- Foreign transaction fees
Here are 5 picks for folks considering a no annual fee cash back card!
1. Chase Freedom Unlimited
Link: Chase Freedom Unlimited
You’ll also earn 1.5% cash back (or 1.5 Chase Ultimate Rewards points) per $1 on all purchases with no limit.
The best part of the Freedom Unlimited is you’ll have flexibility to use the rewards beyond just cash back.
The biggest downside of this card is the ~3% fee for purchases overseas.
2. Discover It
Link: Discover It
With the Discover It card, you’ll get $50 cash back after you make your first purchase within 3 months of account opening when referred by an existing card member. This includes our link. 🙂
And this card earns you 1% cash back on every purchase and 5% cash back (on up to $1,500 in purchases each quarter) on rotating categories (when you register).
New applicants can earn lots of cash back with this card because the total cash back you earn is matched after the 12th billing cycle.
This means you effectively earn 10% back on bonus categories and 2% back on everything else during the first year of card membership.
This card is a great option for folks who spend a lot in the quarterly bonus categories, which previously included wholesales clubs and Amazon!
And there are no foreign transaction fees. But keep in mind Discover cards are not as widely accepted as other cards.
3. Discover It Miles
Link: Discover it Miles
Discover it Miles is similar to the Discover It card. Although it’s not advertised as a cash back card, the “miles” you earn can be used as statement credits toward travel expenses (within the past 180 days), or for cash deposited to your bank account.
There’s no sign-up bonus with this card, but you earn 1.5 miles per $1 you spend (worth 1.5% back) on all purchases.
And just like the Discover It, new cardholders get their miles doubled at the end of the first 12 billing cycles. So that’s effectively 3% back on all purchases!
This card also has no foreign transaction fees.
4. Fidelity Rewards Visa Signature Card
The Fidelity Rewards Visa Signature card has no sign-up bonus, but it has one of the simplest reward programs.
You earn 2% cash back on all purchases with no limits on rewards.
But you’ll need an eligible Fidelity account to get the full 2% cash back rewards.
You can also enjoy the perks of the Visa Signature program like access to once-in-a-lifetime experiences and complimentary 24-hour concierge services.
This card has a 1% foreign transaction fee. That’s much lower than most cards, but it’s still an added charge.
5. Citi Double Cash
Link: Citi Double Cash Card
The Citi Double Cash doesn’t offer a sign-up bonus. But you can earn 1% cash back on all purchases and 1% cash back on all payments.
This card also comes with Citi Price Rewind where Citi will track your purchases over the last 60 days and refund the price difference if they find a lower price (you must register your purchases).
This is a good card for folks who want to earn straightforward cash back rewards.
But it’s not good to use overseas because you’ll pay 3% in foreign transaction fees.
In addition to miles & points cards, some folks like to keep no annual fee cash back credit cards in their wallets. Because it’s easy to redeem cash back rewards. And it never hurts to have a little extra cash!
Or the Discover It card, which offers 1% cash back on every purchase and 5% cash back (on up to $1,500 in purchases each quarter) on rotating categories (when you register). And for new cardholders, the total cash back you earn is matched after the 12th billing cycle.
Emily and I don’t earn a commission on any of these cash back cards, but we always tell you the best ways to earn rewards!