How the Wells Fargo Active Cash Card Works

What the Wells Fargo Active Cash Card Is

The Wells Fargo Active Cash Card is a cash back credit card that gives you a percentage of your spending back as cash rewards. Unlike cards that offer different cash back rates for different categories — groceries get 3%, gas gets 2%, everything else gets 1% — this card gives you the same rate on all purchases. You earn 2% cash back on everything you buy, whether that's groceries, gas, restaurants, or online shopping.

The card is issued by Wells Fargo, one of the largest banks in the United States. It's a Visa card, which means it works anywhere Visa is accepted. The cash back you earn doesn't expire as long as your account stays open, and you can redeem it as a statement credit, a deposit to your Wells Fargo bank account, or a check.

Key Takeaways

• You earn 2% cash back on all purchases with no category restrictions or bonus categories to track.
• There is an annual fee of $95, which means you need to spend enough to make the rewards worth more than the fee.
• Cash back rewards do not expire as long as your account remains open, and you can redeem them multiple ways.
• You need to may have access to for the card based on Wells Fargo's credit requirements, which typically means a good to excellent credit score.

How Cash Back Works on This Card

Every time you use the card to make a purchase, Wells Fargo tracks your spending and calculates 2% of that amount as a reward. If you spend $100, you earn $2 in cash back. If you spend $5,000 in a month, you earn $100 in cash back. The rewards accumulate in your account and you can see your balance in your online account or mobile app.

You don't have to do anything to earn the cash back — it happens automatically. You don't need to register for categories or activate bonus periods. The flat 2% rate applies to all your purchases, including online, in-store, and over the phone. The only exception is that cash advances (withdrawing cash from an ATM using your credit card) do not earn cash back.

The Annual Fee and Whether It Makes Sense for You

The Wells Fargo Active Cash Card charges $95 per year. This is a real cost you pay once every 12 months, whether you use the card or not. To make this card worth the fee, you need to earn at least $95 in cash back rewards per year. Since you earn 2% on all purchases, you need to spend at least $4,750 per year (about $396 per month) for the rewards to cover the fee.

If you spend more than that, the card starts to work in your favor. Someone who spends $10,000 per year earns $200 in cash back, which is $105 more than the $95 fee. But if you spend less than $4,750 per year, you're paying more in fees than you're earning back. Many people find that a no-annual-fee cash back card makes more sense if their spending is lower.

How to Redeem Your Cash Back Rewards

Wells Fargo gives you three main ways to use your cash back. First, you can apply it as a statement credit, which reduces your credit card balance. This is the simplest option and happens instantly when you request it. Second, you can have the cash back deposited directly into a Wells Fargo bank account you own. Third, you can request a check mailed to you.

You can redeem your cash back in any amount — you don't have to wait until you've earned a certain minimum. Some cards require you to have at least $25 or $50 before you can redeem, but Wells Fargo does not have that restriction. You can redeem as little as $1 if you want to, though most people wait until they've accumulated a larger amount.

Credit Score and Approval Requirements

To get approved for the Wells Fargo Active Cash Card, you typically need a good to excellent credit score. Wells Fargo does not publish an exact minimum score, but most people who are approved have a score of 670 or higher. If your score is lower, you may still be approved, but it depends on other factors like your income, employment history, and how much debt you already carry.

When you apply, Wells Fargo will do a hard inquiry on your credit report, which temporarily lowers your score by a few points. This inquiry stays on your report for about two years but stops affecting your score after a few months. If you're denied, you can ask Wells Fargo why and try again later if your credit improves.

How This Card Compares to Other Cash Back Options

The main trade-off with the Wells Fargo Active Cash Card is the annual fee versus the simplicity of earning. Cards with no annual fee often offer lower cash back rates — typically 1% on all purchases — or they offer higher rates only on certain categories. The Active Cash Card's 2% flat rate is higher than most no-fee cards, but you're paying $95 per year for that advantage.

If you spend a lot and want the highest possible rewards, this card can be worth it. If you prefer not to pay an annual fee and don't mind a lower cash back rate, a no-fee card might suit you better. Some people use both: a no-fee card for everyday spending and a premium card like this one for larger purchases or specific spending categories where they want higher rewards.

What Happens to Your Rewards if You Close the Account

Your cash back rewards do not expire as long as your account is open and in good standing. However, if you close the card, Wells Fargo's policy is that you forfeit any unredeemed cash back balance. This means if you have $150 in rewards sitting in your account and you close the card, you lose that $150.

Before you close the card, make sure to redeem all your accumulated cash back. You can do this through your online account or by calling the customer service number on the back of your card. Once you've redeemed it, you can close the account without losing anything.

Frequently Asked Questions

Does the 2% cash back apply to balance transfers?

No. Balance transfers — moving debt from another card to this card — do not earn cash back rewards. Only regular purchases earn the 2% rate. Balance transfers also typically come with a fee, usually 3% of the amount transferred.

Can I use this card internationally?

Yes, you can use the card anywhere Visa is accepted outside the United States. However, Wells Fargo charges a foreign transaction fee of 3% on purchases made in other currencies. This means if you spend $100 internationally, you earn $2 in cash back but pay $3 in fees, resulting in a net loss.

What if I miss a payment?

If you miss a payment, Wells Fargo will charge you a late fee and your interest rate may increase. Missing payments also damages your credit score. If you're having trouble making payments, contact Wells Fargo to discuss options like a payment plan.

Is there a sign-up bonus for new cardholders?

Wells Fargo occasionally offers sign-up bonuses for the Active Cash Card, such as extra cash back for the first few months. These offers change frequently, so check Wells Fargo's website or the card's terms when you apply to see what's currently available.

Can I earn cash back on purchases made by authorized users?

Yes. If you add an authorized user to your account, any purchases they make with their card also earn the 2% cash back. The rewards go into the same account and you control how they're redeemed.