Best Cash-Back Credit Cards With No Annual Fee Of July 2024 – Forbes Advisor – Technologist

A cash-back credit card lets cardholders get a percentage of their eligible credit card spend back in the form of rewards. These rewards can typically be redeemed directly for a cash deposit in a bank account or a check sent via mail or a statement credit.

There are different kinds of earning rates available on cards that offer cash-back rewards, such as cards that earn the same flat rate on everything you buy, cards that have tiered rewards where some spending categories earn higher rewards than others and cards that have specific bonus categories that change (often quarterly).

How Does Cash Back on a Credit Card Work?

Every purchase you make with your card will earn a percentage of your spending in cash back. The exact percentage you’ll earn depends on your specific card. Typically, you’ll collect those earnings in your card’s rewards account and you can use the rewards according to your issuer’s rules. Some cards let you use your cash in earnings for any amount, at any time, while others require a minimum balance to cash out.

The exact method to cash out your rewards also differs by card. Some cards apply your rewards as a statement credit against your balance and others provide cash back as a bank deposit or check. Several cashback cards now allow you to use cash-back rewards for gift certificates or travel, as well.

What Does No Annual Fee on a Cash-Back Credit Card Mean?

A no annual fee, cash-back card is one that does not charge an annual fee in order to be a cardholder. Keep in mind that other fees, such as foreign transaction fees, interest charges, balance transfer fees, cash advance fees, late fees and more can still apply. Read your card agreement carefully for full details about fees that could be charged to your account.

Why Do Some Cash-Back Credit Cards Have an Annual Fee?

Some cash-back credit cards have an annual fee because they offer higher rewards rates, larger welcome bonuses or extra benefits. Depending on how much you spend and whether or not you’re able to use the additional benefits offered by a card that charges an annual fee, the card may or may not be worthwhile. However, for those who prefer a simpler or more affordable option, there are also many cash-back credit cards with no annual fee that still offer decent rewards and perks.