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Wells Fargo just came out with a new credit card with no annual fee. Most of the time, when new credit cards come out, I am pretty underwhelmed. I figure either credit card companies don’t understand what makes for an exciting card or perhaps I am just not the target market. Or maybe both :-).
But I recently got wind of the new Wells Fargo Active Cash card that I believe just went live on July 1, and it’s actually a pretty compelling card. I can’t see any reason not to sign up for it if you’re not trying to get or stay under Chase 5/24, and it is certainly a competitor for the best no annual fee card out there. Let’s take a look and see if it might make sense for you.
Wells Fargo Active Cash Card Review – Earnings Rate and Perks
The Wells Fargo Active Cash card has a super simple earnings structure. You earn unlimited 2% cash back on all purchases. There is no need to do any sort of quarterly activation or track which card you are using in which categories. You have the peace of mind in knowing that you’re going to get 2% cash back, no matter where you spend. While I know most of us are true maximizers who don’t mind carrying tons of cards in the wallet, there is also a nice feeling from having a card like this as a backup if you aren’t meeting the minimum spend on another card or hitting a category bonus. In a way, this is similar to the Citi Double Cash but without the weird 1% when you spend and 1% when you pay marketing gimmick.
The Wells Fargo Active Cash card comes with a few other perks that might be useful to some people as well. You’ll get a 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. I know most people reading this site aren’t looking for balance transfer cards but it could be useful depending on your situation. You’ll also get up to $600 of cell phone protection against damage or theft when you pay your monthly cell phone bill with the card. Many cards are starting to offer cell phone protection now so make sure to check what your other credit cards might give (or what rewards you might get) by paying with a different credit card.
Wells Fargo Active Cash Card Review – Welcome Bonus
One area where the Wells Fargo Active Cash blows away the Citi Double Cash card is its welcome bonus. You can get a $200 bonus cash reward after spending $1,000 on the card in the first three months. While this is similar to the welcome bonus that some other no annual fee cards give, it certainly destroys the Citi Double Cash in this regard. The Citi Double Cash has a welcome bonus of …. zippo. So while $200 is not an amazing welcome bonus compared to say, 100,000 Ultimate Rewards points, it is pretty good for a card with no annual fee. Especially if you are just starting out, this can be a great card to apply for and hold long-term.
Other Credit Cards to Consider
So is this the best no annual fee credit card out there? It is certainly a contender and it just might be possible. Here’s a look at how it compares to some similar cards:
- Wells Fargo Active Cash card – $200 welcome bonus, 2% cash back on all purchases
- Citi Double Cash – no welcome bonus, 2% cash back on all purchases. Ability to transfer your cash back rewards to ThankYou points
- Chase Freedom Unlimited – $200 welcome bonus, 5% on travel purchased through Chase Ultimate Rewards, 3% on dining at restaurants, including takeout and eligible delivery services and drugstores and 1.5% on all other purchases. Ability to transfer cash back to Ultimate Rewards points
- American Express Blue Business Plus – 2 Membership Rewards on up to $50,000 in spending each year. 10,000 Membership Rewards as a welcome bonus.
So it certainly seems comparable. I think reasonable people could make a case for each of those four. What is your favorite?
On the other hand again, the 100,000 Ultimate Rewards points from the current Chase Sapphire Preferred is pretty compelling as well, though it’s not really an apples to apples comparison for these cards.
As always, if you have any questions about the new Wells Fargo Active Cash card or what card might work best for you, feel free to email me at dan at pointswithacrew dot com. I will do my best to help out!
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