Is Wells Fargo or Citi Better For Cash Back Cards?

Trying to find the best flat-rate cash-rewards card? You’ve probably come across the Wells Fargo Active Cash® Card and the Citi® Double Cash Card. These two credit cards are standouts and both offer attractive rewards programs. Let’s compare Wells Fargo Active Cash and Citi Double Cash to see which comes out on top.

Reward programs

Let’s start by comparing the reward programs of these two cards. The Wells Fargo Active Cash and the Citi Double Cash both offer simple and lucrative rewards, allowing you to earn 2% cash back on your purchases. However, the way these rewards are applied differs. With the Active Cash, you receive the 2% cash rewards whenever the balance is paid, while the Double Cash provides 1% cash back when you make the initial purchase and then the other 1% when you pay it off.

Although the difference in reward application may initially be confusing, it shouldn’t have much impact if you pay off your balance in full each month. Additionally, neither card charges an annual fee, enabling you to pair them with other cards that offer greater rewards in specific spending categories, thereby maximizing your overall rewards potential.

Welcome bonus

When it comes to welcome bonuses, the Wells Fargo Active Cash emerges as the clear winner. Unlike the Citi Double Cash, which doesn’t offer any welcome bonus, the Active Cash rewards you with a $200 cash bonus when you spend $500 on purchases in the first three months of opening your account. This is a valuable offer that gives the Active Cash an edge in this category.

Other perks

Moving on to additional card perks, once again, the Wells Fargo Active Cash outshines the Citi Double Cash. While the Double Cash only provides standard fraud protections, the Active Cash offers a range of extra benefits. These include cell phone protection against damage or theft, roadside assistance, and various hotel and travel benefits through Visa Signature concierge and Visa Signature Luxury Hotel Collection. Although these additional perks may not be extensive, they still offer more value than the Double Cash card.

Intro APR offers

Next, let’s delve into the introductory APR offers. The Wells Fargo Active Cash grants cardholders a 0% introductory APR on purchases and qualifying balance transfers for 15 months from the account opening (after which, the variable APR ranges from 19.99% to 29.99%). On the other hand, the Citi Double Cash provides an introductory 0% APR for balance transfers for 18 months (variable APR ranging from 18.99% to 28.99%), but balance transfers must be completed within four months of account opening.

Considering that both cards are primarily designed for earning rewards on new purchases, the introductory purchase APR is more relevant. Here, the Active Cash takes the lead with its 15-month 0% APR offer, allowing you to finance a significant planned purchase and pay it off without incurring any interest charges.

However, if your priority is to tackle existing credit card debt, the Citi Double Cash Card is the better choice due to its longer introductory balance transfer offer of 18 months. Just remember not to make new purchases on the card until you’ve repaid the transferred debt.

Both cards come with an introductory balance transfer fee of 3% (with a $5 minimum) for the first four months from account opening. After this period, the balance transfer fee increases for both cards; the Citi Double Cash raises it to 5%, while the Active Cash raises it up to 5% (with a $5 minimum) after 120 days from account opening.

Bottom line

Both the Wells Fargo Active Cash and the Citi Double Cash offer solid flat-rate cash back rewards. However, the Active Cash emerges as the better value card, thanks to its welcome bonus, additional card perks, and 0% introductory purchase APR. For those looking to pay off credit card debt, the Citi Double Cash provides a longer window for balance transfers. Ultimately, the choice between these two cards depends on your specific financial goals and spending habits.