Credit cards offer a variety of unique benefits that entice cardholders to choose them over their competitors. Different cards may provide reward points, travel miles, and other novel benefits. Many consumers, however, prefer to use a cash-back credit card. Anyone can earn while they spend with a 2% cash-back card, making their budget go further.
Here are some of the best 2% cash-back credit cards available today, as well as the information you need to make the best decision for you.
1. Alliant Cashback Visa Signature Card
The Alliant Cashback Visa® Signature credit card is an appealing option because it offers cash back with no upper limit and has no annual fee. This card does not provide 2% cash back, but rather 2.5% on the first $10,000 in eligible spending. Any additional spending earns 1.5% cash back.
The card has attractive rates beginning at 13.74% APR. With support for Google Pay, Samsung Pay, and Apple Pay, cardholders will have no trouble accessing their other payment methods and digital wallets.
One of the best aspects of this card is that it does not limit cash back to specific spending categories. While many other credit cards only offer cash back at specific stores or for specific purchases such as groceries or gas, the Alliant Cashback Visa® Signature credit card does not.
However, in order to obtain the card, you must first join Alliant Credit Union. To get this card, cardholders must first open an Alliant Checking account and then qualify for Alliant High-Rate Checking to earn the most rewards. To qualify for the maximum rewards of 2.5% in the following quarter, you must maintain an average daily balance of at least $1,000 in this account for each month of the preceding calendar quarter. This may appear to be a constraint, but it is ideal for anyone looking to connect their services.
Pros
- Excellent 2.5% cash back on the first $10,000 spent.
- There are no annual fees.
- APR that is appealing
Cons
- A checking account with Alliant is required.
- Each month, a minimum of $1,000 in average daily balance is required.
- There is no special welcome offer.
2. Citi® Double Cash Card
The Citi® Double Cash card offers 2% cash back in an unusual way. Citi describes the bonus as receiving 1% cash back twice rather than just 2% cash back. Cardholders earn 1% cash back on purchases and 1% cash back on debt repayment.
In practise, this provides cardholders with the same benefits as any other 2% cash-back credit card, but it also provides a small incentive to pay off the balance sooner. Cardholders can also earn a $200 cash back bonus after spending $1,500 on purchases in the first six months for a limited time.
The card is extremely flexible, with no mandatory purchase categories in order to earn cash back. There is no cap on cash back earnings, so you can use the card for virtually any type of spending.
The Citi® Double Cash card is also extremely useful. You can redeem your cash back points for gift cards, travel, or shopping at Amazon.com and other online retailers in addition to receiving them as a statement credit, direct deposit, or mailed check.
The variable APR for the card ranges from 16.24% to 26.24% — nothing out of the ordinary. The card does not have an annual fee, but it does charge a 3% foreign transaction fee. New cardholders can benefit from an introductory APR offer. The Citi® Double Cash card has an introductory APR of 0% for the first 18 months on balance transfers completed within four months of account opening, followed by a variable APR of 16.24% – 26.24%.
Pros
- Welcome gift
- 2% cash back if you don’t carry a balance
- There is no annual fee.
- Balance transfer introductory APR
Cons
- The APR offer is only available for balance transfers, not purchases.
- Fee for foreign transactions
3. Bread Refund Credit Card from American Express
If you’ve been looking into more traditional credit card issuers, you might not have come across Bread Financial. The one-of-a-kind financial technology firm focuses on co-branding, creating credit cards with specific benefits for customers.
The Bread Rebate The American Express® credit card differs from the company’s usual category and brand-specific cards. It offers an unlimited 2% cash back on all purchases, with no restrictions on where, what brands, or what categories you shop in.
The variable APR ranges from 16.99% to 28.49%, which is slightly worse than some of the other options on this list.
However, it is the only American Express, FDIC-insured option. The company generally avoids these types of offers, making the Bread Cashback American Express® credit card a rare opportunity to enjoy American Express’s security and other benefits in a cash-back card with no annual fee.
Another advantage is that you have complete control over your cash back earnings. You can have the rewards credited to your statement or deposited directly into your bank account.
Pros
- There are no category restrictions for the unlimited 2% cash back.
- American Express benefits and security
- There is no annual fee.
Cons
- There is no welcome offer.
- Competitiveness is lower. APR
4. Capital One Spark Cash Plus
Unlike many of the other cards on this list, Capital One Spark Cash Plus is marketed specifically to businesses. The versatile card has a number of business-oriented features, such as no spending limits and no cap on its 2% cash back.
Because the Spark One Cash Plus is a charge card, you cannot carry a balance or make payments over time. Because the full balance must be paid each month, there is no APR. While this may be an issue for some, it is a perfectly reasonable agreement for this type of business card.
A welcome offer adds some extra incentive to choose this card and helps to offset the $150 annual fee. A cash bonus of up to $1,000 is available for meeting spending thresholds in the first six months: $500 if you spend $5,000 within three months, and another $500 if you spend $50,000 within six months.
Because this is a business card, it also provides free cards to employees, resulting in 2% cash back on all company spending. These employee cards aren’t just for making transactions easier; they also allow managers to track and monitor expenses.
While the Capital One Spark Cash Plus is only available to businesses, it is ideal for that purpose.
Pros
- All purchases earn 2% cash back.
- Employee identification cards
- Welcome gift
Cons
- Only for companies
- The annual fee is $150.
Important Information
One of the most important things to remember about 2% cash-back credit cards is that you must pay off your balance each month in order to reap the greatest benefit. A single month’s interest on a higher-rate card, in particular, can cancel out your cash back reward.
5. Synchrony Premier World Mastercard
Synchrony Bank offers a variety of partnered credit cards for retailers such as Lowe’s, Ashley Furniture, Living Spaces, and Pep Boys. Among its products is the Synchrony Premier World Mastercard, a 2% cash-back credit card that may provide the benefits you seek.
The card has no annual fees and a reasonable variable APR range of 14.74% – 27.74%. As a World Mastercard, the card is protected against everything from fraud to identity theft. This includes regular identity monitoring by Mastercard, making it an excellent choice for travellers.
This card has few restrictions, including no cap on total cash back and no spending category restrictions, so you never have to opt in to receive rewards or additional benefits.
The card also includes additional discounts for services such as DoorDash, Lyft, and Hello Fresh.
Pros
- 2% cash back is simple.
- There is no annual fee.
- A variety of one-of-a-kind offers and bonuses
Cons
- Fee for international transactions
6. SoFi Credit Card
SoFi is a newcomer to the credit card industry. The online personal finance company provides a wide range of credit products, including credit cards and student loan refinancing, and it now also offers banking services.
The SoFi credit card offers 2% cash back as well as many of the perks that customers have come to expect from online finance, such as extra benefits from Lyft and DoorDash. There are no spending category restrictions on the card, and there are no annual fees.
You must enrol in other SoFi financial products to take advantage of the 2% cash back offer. Every dollar spent earns two reward points, which are only worth their full value if deposited into a SoFi checking, savings, cryptocurrency, investment, or loan account.
For a limited time, you can earn an extra 1% cash back, up to 36,000 points, by setting up and maintaining a qualifying direct deposit each month.
The SoFi credit card has an APR range of 14.49% to 26.49% variable, which is potentially not too bad for those with good credit. Cardholders who make 12 consecutive on-time monthly payments and meet the minimum requirements may have their APR reduced by 1%.
Pros
- All purchases earn 2% cash back.
- For a limited time, earn 3% cash back with direct deposit.
- There is no annual fee.
Cons
- Additional SoFi accounts are required to receive the full 2%.
7. PayPal Cashback Mastercard®
With the PayPal Cashback Mastercard®, online shoppers may have discovered their best cash back offer. This unique offering includes a bonus that increases cash back to 3% on PayPal purchases. Anyone who already uses PayPal may benefit greatly from this offer.
In addition to the unique benefits offered for PayPal payments, the card offers 2% cash back on all non-PayPalm purchases. There are no additional category limitations, and the cash back is unlimited.
Through the end of August, PayPal is offering an additional $100 cash back on the first $500 spent within 90 days of opening an account. This card is worth keeping an eye on with this bonus and great new features. It’s worth noting that the APR for this card is slightly higher than that of some of its competitors, ranging from 16.49% to 28.49%.
Pros
- 2% cash back on all purchases
- PayPal purchases earn 3% cash back.
- There is no annual fee.
Cons
- Competitiveness is lower. APR
8. Fidelity® Rewards Visa Signature® Card
The Fidelity® Rewards Visa Signature® Card is a cash-back credit card that can be used in conjunction with Fidelity’s various savings and investment products. To take advantage of the 2% offer, you must deposit your funds into a qualifying Fidelity account, either your own or that of a loved one. You can return all of your funds to a single account or divide them among up to five different accounts.
Points can also be redeemed for a variety of other rewards, such as travel and merchandise, at a reduced rate. Because this card allows you to deposit the full 2% into IRAs, 529 college savings plans, and other investment accounts, it’s best used to supplement long-term savings and investments.
The card has a variable APR of 16.24%. There is no annual fee and only a 1% foreign transaction fee. Because this is a Visa Signature card, cardholders are entitled to a number of additional benefits. These include car rental collision damage waivers, reimbursement for lost luggage, travel accident insurance, and roadside assistance.
Pros
- 2% cash back in any location
- Visa Signature Advantages
- There is no annual fee.
Cons
- 2% only on deposits made into Fidelity accounts
How to Select the Best Cash Back Card
These cards are all excellent choices for specific people. Consider your own specific requirements to determine which is the best fit. Consider your spending habits, whether you’ll be able to meet the requirements for any bonus offers, and whether you’ll be able to make payments on time to avoid paying interest.
Almost all of these cards offer additional benefits in some areas, so it’s worth investigating what these extras mean to you.
Last Words
Take the time to thoroughly research these fantastic 2% cash-back credit cards to ensure you’re getting the most out of your everyday spending. Different cards suit different types of spenders, so it’s critical to do your homework before making a decision.
