Is The Wells Fargo Active Cash Worth It?

If you’re searching for a credit card with a simple rewards structure, you’ve likely considered a flat-rate cash back card. With this type of card, there is no need to monitor rotating bonus categories or even fixed tiered categories to earn cash back rewards. You simply swipe your card and watch the cash back rewards accumulate.

Since its release, the Wells Fargo Active Cash® Card has quickly emerged as a standout in the flat-rate category due to its unlimited 2 percent cash rewards on purchases. Here’s a look at what the card has to offer and key factors to consider when deciding if it is worth it for you.

When is Wells Fargo Active Cash worth it?

You prefer simplicity

When it comes down to it, the Wells Fargo Active Cash is a simple card for a simple cardholder. And that’s a positive aspect. If you don’t have the time to activate rotating categories or calculate spending caps on bonus categories (or simply don’t want to do either of those), this is an excellent card to consider.

It earns unlimited 2 percent cash rewards with no category limitations or quarterly activations. Plus, you can earn a $200 cash rewards bonus if you spend $500 within the first three months, and there’s no annual fee. If you’re looking for something that earns rewards with minimal effort and no spending caps, this is the card for you.

You plan to make a large purchase soon

If you are considering purchasing a big-ticket item, such as a new laptop or washing machine, but currently lack the funds to pay for it in full, the Wells Fargo Active Cash has a solid introductory APR offer: 0 percent intro APR on new purchases for 12 months from account opening (19.24%, 24.24%, or 29.24% variable APR thereafter). If 12 months is long enough to pay off your new purchase, Wells Fargo Active Cash could help you save on interest.

You want to transfer high-interest debt

Alternatively, you may have accumulated credit card debt from a high-interest card and would like to transfer that balance to a card that offers an introductory APR on balance transfers. The Wells Fargo Active Cash also offers a solid intro APR offer for qualifying balance transfers: 0 percent intro APR for 12 months from account opening on qualifying balance transfers made within 120 days of account opening (19.24%, 24.24%, or 29.24% variable APR thereafter).

You should also know there is an intro balance transfer fee of 3 percent, or a minimum of $5, for balance transfers made during the first 120 days. After that, the fee will increase to 5 percent (minimum of $5).

You want better card benefits without paying an annual fee

As if the high cash rewards rate, welcome bonus and introductory APR offers weren’t enough, this card comes with additional features typically found only on cards with annual fees. These features include cellphone protection (if you pay your monthly cellphone bill with the card; terms apply), an auto rental collision damage waiver, travel and emergency assistance services, Visa Signature Concierge Services and more. This makes the Wells Fargo Active Cash card suitable for even the most cautious cardholders.

Note that, for the cellphone protection benefit, you’ll get up to $600 per claim for damage or theft (maximum of two claims per year, minus a $25 deductible).

You like combining cards

Wells Fargo’s points-based travel cards have the ability to transfer points to travel partners through the new “Points Transfer” program. This applies to the Autograph line of cards, and it is now also possible to pool points from the Wells Fargo Active Cash card with the new Wells Fargo Autograph Journey℠ Card.

Similar to other common card combinations, like the Chase trifecta or Citi trifecta, you can now pool the rewards you’ve earned with your Active Cash and Autograph Journey cards. You can then transfer those rewards to participating partner programs for even more value.

When is the Wells Fargo Active Cash not worth it?

You enjoy rotating category bonuses

If you like earning boosted rewards in categories that rotate each quarter, this isn’t the card for you. The same applies if you enjoy boosted rewards categories of any type.

The Wells Fargo Active Cash card offers a flat 2 percent cash back on purchases, making it one of the best flat-rate cash back offers you’ll find. However, you won’t earn boosted rewards rates in specific categories. If you know your budget heavily favors groceries or dining out, for instance, you could earn more rewards with a top credit card tailored for groceries or restaurants.

You want to redeem cash rewards directly for travel

Although you can redeem your cash rewards for travel through the Wells Fargo Rewards travel portal, we’d advise against it. The travel portal isn’t nearly as robust as others, like Chase Ultimate Rewards.

Additional redemption options include cash withdrawals from a Wells Fargo ATM (in $20 increments), direct deposits to an eligible Wells Fargo checking or savings account, statement credits and gift cards.

Should you get the Wells Fargo Active Cash?

All in all, it’s a good card to have. In fact, this card’s flat-rate 2 percent cash rewards offering makes it one of the best rewards cards on the market. For credit card enthusiasts who like playing with different card combos, you could use the Wells Fargo Active Cash as an everyday spending card and redeem your cash rewards at a 1:1 ratio. To maximize your rewards, you could even pair the card with one that earns boosted rewards on certain categories of spending, like travel.

For new cardholders who don’t want too much hassle, the flat rate eases any possible headache toward maximizing bonus categories. You can simply use this card on your purchases, and the 2 percent cash rewards will add up faster than you realize. You’ll be able to redeem your rewards for physical cash, gift cards or statement credits soon enough.

The bottom line

The Wells Fargo Active Cash Card could make a lot of sense for the right person in the right circumstances. And since there’s no annual fee, there’s not much to lose. If you aren’t quite sure about this card, be sure to consider other top cash back credit cards.

You can use Bankrate’s CardMatch™ tool to check out other credit cards you might be eligible for.