Wells Fargo Announces New ‘Active Cash’ 2% Back Credit Card
After halting new applications for its Propel credit card earlier this year, it became clear that Wells Fargo was looking to shake up its rewards credit card offerings. Sure enough, the bank has stated that it’s planning an overhaul of its card line-up. Now, it’s been revealed that the first product out of the gate will be the Wells Fargo Active Cash card, which will officially arrive this July.
The new Active Cash card offers an easy rewards structure: 2% cashback on all purchases made with the card. Then, when it comes to redeeming that earned cashback, customers will be able to deposit funds into their Wells Fargo account, claim statement credits for their purchases, or even access cashback at Wells Fargo ATMs (in increments of $20 and by using a Wells Fargo debit or ATM card). Adding to the simplicity, the Active Card card will carry no annual fee.
With its flat unlimited 2% cashback earning scheme, the upcoming Active Cash card will likely draw comparisons to the ever-popular Citi Double Cash Card. However, one thing that the Wells Fargo card will offer that the Double Cash card currently does not is a welcome bonus. At launch, Active Cash customers will be able to earn a $200 cashback bonus when they spend $1,000 in purchases on the card in their first three months.
Incidentally, in addition to the Citi Double Cash card and now the Active Cash card, a couple of other flat 2% cashback entrants have joined the market in recent months. Among them, the SoFi Credit Card allows customers to earn 2 points per dollar spent on all purchases, with those points being redeemable at a rate of 1¢ per point when used to make deposits into SoFi Money or SoFi Invest accounts or to make loan payments. Elsewhere, TD Bank introduced the TD Double Up Card back in March, earning customers 1% cashback on their purchases and an additional 1% cashback when they redeem funds into an eligible TD Bank Deposit Account.
As mentioned, the Active Cash card will be the first in a refreshed line-up of cards from Well Fargo. Later this year, the bank will also launch a low-APR card called Reflect, followed by further rewards cards next year. In a statement about the upcoming new line of cards and the launch of the Active Cash card, Wells Fargo CEO Charlie Scharf said, “Today is a key step in Wells Fargo’s transformation journey, as we announce a new portfolio of industry-leading credit cards, and a new vision for growth for an important part of our consumer business. This represents Wells Fargo’s broader effort to simplify its products and services to help satisfy the financial needs of our customers, and position ourselves as a leader in consumer offerings.”
For credit card enthusiasts, the announcement of the Wells Fargo Active Cash card may be a bit underwhelming given the card’s tried-and-true structure. Nevertheless, the unlimited 2% cashback card could be a good option for credit card reward newbies who want an easy cashback solution. Plus, the existence of a welcome bonus potentially puts the Active Cash card above some similar options. Therefore, this could be a card worth getting once it makes its debut next month — and as we wait to see what other cards Wells Fargo has up its sleeve in the coming year.