Wells Fargo Active Cash® Card review: The best flat-rate cash back card?

The Wells Fargo Active Cash Card isn’t just one of the best flat-rate cash rewards cards — it’s one of the best cash rewards credit cards period.

Cash rewards cards that earn 2 percent on purchases aren’t unheard of, but the Active Cash card comes with no strings attached and leads the pack when it comes to Wells Fargo cards. It Earned a top spot on our list of the best no annual fee credit cards, toppling the Citi® Double Cash Card as the long-reigning MVP of flat-rate cash rewards cards.

Quick highlights

• Rewards rate: Unlimited 2 percent cash rewards on purchases
• Welcome offer:  Earn a $200 cash rewards bonus after spending $1,000 in purchases within the first three months
• Annual fee: $0
• Purchase intro APR: 0 percent for 15 months from account opening
• Balance transfer intro APR: 0 percent for 15 months from account opening on qualifying balance transfers
• Regular APR: 19.49 percent, 24.49 percent, or 29.49 percent (Variable APR)

Current welcome offer

The Active Cash card’s sign-up bonus is typical for a no-annual-fee cash rewards card, but the spending requirement is steep for the payoff. Cardholders will earn $200 cash rewards after they’ve spent $1,000 in combined purchases within the first three months of their account opening. Considering other cash rewards cards’ sign-up bonuses offer $200 in rewards for spending half that, this isn’t the most attainable welcome offer we’ve seen. Even so, the average cardholder should have no issue meeting this spending requirement.

It’s worth noting that you won’t be able to sign up for the Active Cash card or be eligible for its welcome bonus if you’ve opened a Wells Fargo credit card in the past six months. This buffer is standard for Wells Fargo credit cards, and several other issuers —  like Capital One — require you to wait between credit card applications for just as long. However, a few issuers, including Bank of America and American Express, have much shorter approval period wait times.

Rewards rate

With the Wells Fargo Active Cash card, you’ll earn unlimited 2 percent cash rewards on purchases. When it comes to choosing a cash back rewards card, it’s hard to beat the flexibility of a flat-rate card since you’ll earn unlimited rewards on any purchase, all without worrying about bonus categories or spending limits. Besides being more straightforward to use for first-time cardholders than higher-maintenance bonus category cards, the Wells Fargo Active Cash could be essential to maximizing your cash rewards.

How you earn

Although other flat-rate cards can earn unlimited 2 percent cash rewards, the Active Cash is one of the few that wipes away any footnotes attached to the claim. For example, the Citi Double Cash card only earns up to 2 percent on all purchases if you pay your statement balance. You earn 1 percent when you pay and another 1 percent when you pay off the purchase. On the other hand, the Wells Fargo Active Cash earns 2 percent cash rewards back for purchases, no matter when you pay your statement balance. 

How to redeem

Compared to other cash rewards cards, The Active Cash gives you an impressive variety of options, with how you redeem your cash rewards:

• Statement credits: Redeem rewards to offset eligible purchases made on your credit card account. Redeem for
  purchases as little as $1.
• Physical cash in $20 increments at Wells Fargo ATMs (using a Wells Fargo debit or ATM card)
• Direct deposits into Wells Fargo savings or checking accounts
• Gift cards (via Wells Fargo Rewards)
• Travel, including flights, car rentals and hotel stays (via Wells Fargo Rewards)

Your Active Cash rewards work like those of other cash rewards programs: Each percentage point of cash rewards is worth 1 cent. Every purchase earns 2 percent cash rewards back, which equates to 2 cents per dollar. If you spend $1,000 with your card, you’ll have earned $20 cash back.

Alongside its excellent rewards rate, the Wells Fargo Active Cash carries a solid portfolio of benefits as a Visa credit card—plus Wells Fargo’s staple cellphone protection. However, the card’s extra features aren’t as strong as those of other 2 percent cash rewards cards some of which carry World Elite Mastercard benefits.

Cellphone protection

As you can expect from a Wells Fargo credit card, the Active Cash card covers your cellphone against damage or theft for up to $600 per claim (subject to a $25 deductible) each month you pay your cellphone bill with the card.

This perk comes in handy both at home and on the road, saving you on cellphone insurance while delivering one of the best cash rewards rates on your bill at the same time. Plus, Wells Fargo’s protection plan can be a bit better than the World Elite Mastercard cellphone protection you’d get with the Citi Double Cash: You’ll have a two claim or $1,200 annual limit instead of Mastercard’s $1,000 annual limit (carries the same $600 per claim limit).

Visa Signature perks

On top of the basic Visa Traditional features like auto rental collision damage waiver coverage, zero liability for unauthorized purchases and roadside dispatch, you’ll also qualify for Visa Signature benefits. These include travel perks like Visa Signature Concierge Services and additional perks at Luxury Hotel Collection properties. You’ll also get extra peace of mind from travel and emergency assistance services, extended warranty protection and online product registration for easier claim filing.

Part of what makes the Wells Fargo Active Cash so enticing is its low ongoing cost and well-rounded zero-interest offers. There is no annual fee, no penalty APR and a generous intro APR period for purchases and qualifying balance transfers from account opening. 

Depending on your creditworthiness, the card’s ongoing 19.49 percent, 24.49 percent, or 29.49 percent variable APR can be lower than the current average interest rate. Only a few rewards cards offer zero-interest on both purchases and qualifying balance transfers at the moment, so the Active Cash is one of your better options if you want to transfer a balance to a Wells Fargo card or if you have a big purchase coming up.

Just keep in mind there’s an intro 3 percent balance transfer fee ($5 minimum) for the first 120 days from account opening, then up to 5 percent ($5 minimum). It’s also worth being aware of the 3 percent foreign transaction fee if you plan to travel with your card.

The Wells Fargo Active Cash is an excellent cash rewards credit card for people looking for a no-frills card with a generous sign-up bonus, no annual fee and a simple rewards structure — but experienced credit card users may find it lacking additional benefits typically found on highly rewarding cash back cards. Or they may feel a flat-rate card isn’t the best way to maximize earnings if they’re used to earning boosted rates in key purchase categories.

Given this, it may be worthwhile to compare the Active Cash card to some of the best cash rewards cards on the market to decide which would be the right choice for you.

Wells Fargo Active Cash vs. Capital One Quicksilver Cash Rewards

The Capital One Quicksilver Cash Rewards Credit Card is one of the most popular no-annual-fee cards for straightforward rewards, but the Wells Fargo Active Cash beats its 1.5 percent flat-rate cash back and perhaps is as low maintenance. However, the Capital One Quicksilver card has a more attainable welcome offer, requiring you to spend $500 in the first 3 months to earn the same $200 offer. Plus, it earns boosted cash back, up to 5 percent back on hotels and rental cars booked through Capital One Travel.

You can’t set automatic redemption intervals with the Active Cash like you can with the Quicksilver, although the Active Cash lets you withdraw cash back from issuer ATMs. Still, the Active Cash card removes much of the fine print you’ll find on other cards that earn unlimited 2 percent cash rewards.

Wells Fargo Active Cash vs. Citi Double Cash

While the Citi Double Cash card is the most popular 2 percent cash back card, you might earn less than 2 percent rewards. You’ll only earn 1 percent back until you pay off your purchase, and carrying a balance would eat through those extra rewards anyway.

However, the Double Cash card has a slightly longer intro APR period for balance transfers (18 months) and a potentially lower ongoing interest rate (18.49 percent to 28.49 percent variable APR). Still, it doesn’t carry a zero-interest purchase APR — which is more helpful for a flat-rate card focused on new spending. However, the Double Cash does have a slight advantage over the Active Cash when it comes to benefits because of its network’s higher-tier World Elite Mastercard perks.

Best cards to pair with the Wells Fargo Active Cash

The beauty of flat-rate cash rewards cards is that they pair well with almost any card you might already use. The best way to maximize your flat-rate cash back card is to pair it with a card that earns a higher rewards rate on your most significant specialized spending categories, such as groceries, dining or gas. Then, use the Wells Fargo Active Cash to earn more rewards on spending outside those categories.

For example, you can use a card like the Blue Cash Preferred® Card from American Express to earn cash back on your U.S. supermarket, select U.S. streaming subscription, transit and U.S. gas station spending. The Active Cash would cover everything else or any U.S. supermarket purchases not eligible for the Blue Cash Preferred card’s full cash back rate.

In short: Yes, wholeheartedly. The Wells Fargo Active Cash Card has debuted as one of the market's best flat-rate cash rewards credit cards. It’s a low-maintenance rewards card anyone can manage with top-rate rewards potential, paired with redemption options that make it easily fit any rewards strategy.