Wells Fargo Launches Active Payment Card With No Annual Fee

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Wells Fargo has launched its brand new credit card, the Wells Fargo Active Cash Card℠, which has no annual fee and earns a 2% lump sum cash reward across the board. This card comes with a generous welcome bonus of $ 200 in cash rewards after spending $ 1,000 in the first three months after opening the card.

Active Cash is a good option for people interested in a cash back card with no annual fee and no revolving bonus expense categories that require activation. the Active cash flowSM Menu Also offers a 15 month introductory period of 0% APR on qualifying purchases and balance transfers (then, a variable APR of 14.99% to 19.99% or 24.99%).

Wells Fargo Active Cash Card℠

  • Awards

    2% unlimited cash rewards on purchases

  • Welcome bonus

    $ 200 cash rewards bonus after spending $ 1000 on purchases in the first 3 months after opening the account

  • Annual subscription

  • Introduction APR

    0% APR on qualifying purchases and balance transfers during the first 15 months from account opening

  • Regular APR

    14.99% to 24.99% variable on purchases and balance transfers

  • Balance transfer fees

    3% launch fee ($ 5 minimum) for 120 days from account opening, then up to 5% ($ 5 minimum)

  • Foreign transaction fees

  • Credit needed

With the launch of the Active Cash card, Wells Fargo is building new momentum in the credit card business. While Wells Fargo is the debit card issuer number 2 in the United States, it has long lagged behind in the number of credit card accounts compared to other major retail banks like JPMorgan Chase and Citigroup.

the Active cash flowSM Menu is in direct competition with the Citi® Double Cash Card, which offers 2% cash back (1% when you buy and 1% when you pay) and a 0% introductory period for 18 months on purchases and balance transfers (after, variable from 13, 99% to 23.99%).

The biggest difference between the two products is that Citi Double Cash does not offer a welcome bonus, while the Active cash flowSM Menu launched with a cash reward of $ 200 for new applicants. Active Cash also offers benefits such as cell phone protection if you use the card to pay your cell phone bill.

Citi® Double Cash Card

  • Awards

    2% Cash Back: 1% on all qualifying purchases and an additional 1% after paying your credit card bill

  • Welcome bonus

  • Annual subscription

  • Introduction APR

    0% for the first 18 months on balance transfers; N / A for purchases

  • Regular APR

    13.99% – 23.99% Variable on purchases and balance transfers

  • Balance transfer fees

    Either $ 5 or 3% of the amount of each transfer, whichever is greater

  • Foreign transaction fees

  • Credit needed

the Active cash flowSM Menu may be a good choice for you if you don’t spend more in certain bonus categories that other cards may offer (for example, meals, groceries or gasoline) or if you don’t want to keep track of it because it offers bonuses. 2% cash rewards on purchases. It’s also good for those who prefer cash back rewards instead of airline miles and / or hotel points or for people who don’t want to learn a new rewards program.

Cash rewards can be redeemed as a statement credit, through a Wells Fargo ATM using a Wells Fargo debit or ATM card, as a direct deposit to a Wells Fargo savings or checking account, or in the form of a paper check. If you travel overseas a lot, this card might not be your best option due to the 3% overseas transaction fee.

CNBC Select has calculated how many rewards the average American can earn in a year using their Wells Fargo Active Cash card. We worked with the geolocation firm Esri, which provided us with a sample annual expenditure budget of $ 22,126. We found that in the first year of joining the card, the Active Cash card brought in $ 643 in cash, including the welcome bonus. Subtracting the welcome bonus, the card would earn an average of $ 443 based on Esri’s budget sample.

If you’re interested in other 2% flat-rate cash back cards, you may want to consider the Visa Signature® Fidelity® Rewards card or PayPal Cashback Mastercard®. However, these cards do not offer some of the benefits offered by the Active cash flowSM Menu: Neither card offers a welcome bonus or a 0% APR introductory period on balance transfers or purchases. They also both require that cash back rewards be deposited to accounts associated with their respective companies.

Our methodology

To determine which credit cards offer the best value for money, Select the popular analyzed credit cards available in the US We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fees and fees overseas transaction, as well as factors such as credit requirements and customer reviews when available. We also took into account the additional benefits, the application process and the ease with which the consumer can redeem points.

Select has partnered with a location intelligence company Esri. The company’s data development team has provided the most recent and comprehensive data on consumer spending based on the 2019 Bureau of Labor Statistics Consumer Spending Surveys. You can learn more about their methodology here.

Esri’s data team created a sample annual budget of roughly $ 22,126 in retail spending. The budget includes six main categories: groceries ($ 5,174), gasoline ($ 2,218), restaurants ($ 3,675), travel ($ 2,244), utilities ($ 4,862) and general purchases ($ 3,953) . General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, as well as other vehicle expenses.

Select used this budget to estimate how much the average consumer would save over one year, two years and five years, assuming they would try to maximize their rewards potential by earning all the welcome bonuses offered and using the card for all. applicable purchases. All total reward estimates are net of annual fees.

While the five-year estimates we’ve included are derived from a budget similar to the average American’s spending, you can earn higher or lower returns depending on your buying habits.

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.

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