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Not everything in life has to be complicated, especially when it comes to finance. While rewards credit cards that earn points or miles and offer rewards in different bonus categories can be lucrative, many people prefer the simplicity and consistency of flat-rate cash back cards.
Whether most of your purchases fall outside the typical credit card bonus categories or you’re tired of trying to remember which card rewards what, flat-rate credit cards are great for those who like to keep earning and redeeming rewards simple.
There are many flat-rate cards available at various credit levels, but the best cards offer 2 percent cash back instead of the typical 1.5 percent back. Some cards also have additional benefits, including travel perks and shopping protections.
Here are some of the best 2 percent cash back credit cards on the market.
Comparing the best 2 percent cash back cards
| Card name | Best for | Cash back highlights | Welcome offer | Bankrate score |
|---|---|---|---|---|
| Wells Fargo Active Cash® Card | Overall |
|
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months | 4.3 |
| Citi Double Cash® Card | Pairing |
|
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back. | 4.2 |
| Upgrade Cash Rewards Elite Visa® | Long-term financing |
|
$200 bonus after opening a Rewards Checking Plus account and making 3 debit card transactions* | 4.2 |
| Ally Unlimited Cash Back | Ally Bank customers |
|
N/A | 3.4 |
| Alliant Cashback Visa® Signature Card | High flat rate |
|
N/A | 3.9 |
| Apple Card | Apple customers |
|
N/A | 3.5 |
Top 2 percent cash back cards
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The Wells Fargo Active Cash Card has nearly all the key features you’d hope for on a no-annual-fee cash rewards card. You’ll earn an unlimited 2 percent cash rewards on purchases and a shot at a generous $200 cash rewards bonus after spending $500 within the first three months. Sign-up bonuses can be hard to find on flat-rate cards, so this feature is especially impressive.
On top of that, the Active Cash includes an intro APR on both balance transfers and new purchases — a rare feature for cash back cards to feature both offers. This further solidifies the Active Cash card’s position as the best overall flat-rate card.
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Pros
- This card earns one of the highest flat cash back rates available.
- You can take advantage of a welcome offer with a terrific rate of return.
Cons
- You can’t transfer rewards to airline or hotel partners to get more value out of them.
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The Citi Double Cash® Card helps you earn rewards in the most responsible way. You only receive the full 2 percent cash back when you pay off your purchases, which encourages you to keep a low or no balance. This does wonders for your overall debt and your credit score.
The card also stands out for its terrific pairing potential as part of the Citi Trifecta, which includes the Citi Double Cash, Citi Custom Cash℠ Card and the Citit Stata Premier℠ Card. With these three cards, you can earn rewards in nearly every major everyday spending category and pool points to use for travel or transfer to popular airlines and hotels, potentially at a higher-than-1-cent value.
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Pros
- Earn up to 2 percent cash back on all purchases (1 percent when you buy, plus 1 percent when you pay off purchases).
- You’ll have six months to meet the spending requirement for this card’s welcome offer.
Cons
- The full amount of your cash back rewards is gated behind a payment caveat, which can make accessing rewards a hassle when carrying a balance.
- The spending requirement for its welcome offer is three times as high as the one available on this card’s direct competitor: The Wells Fargo Active Cash card.
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The Upgrade Cash Rewards Elite Visa combines the features of a cash back credit card and a personal loan. It allows you to earn rewards on purchases as you pay them off in equal monthly installments. You can pay off purchases over installment periods as long as 60 months, making this card a good choice if you need a lot of time to chip away at expenses but still want to earn rewards.
Still, this card won’t necessarily appeal to everyone, especially if you only need a few months to pay off your purchases. Many flat-rate cash back cards offer a 0 percent intro APR on new purchases for 12 to 18 months. During that period, you could chip away at your balance while completely avoiding interest. The Upgrade Cash Reward Elite Visa, in contrast, would require you to pay at least some interest over 24 months or more.
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Pros
- Boost your cash back rate to 2.2 percent after making a monthly payment.
- No minimum spending is required to earn this card’s welcome offer — you just need to make three deposits into a qualifying Rewards Checking account.
Cons
- There’s no intro APR offer, which undermines this card’s utility for paying off purchases over time.
- While Upgrade cards might be available to people with average credit, you’ll typically need at least good credit for the best odds to get this card.
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Ally Bank has been ranked the best bank by Bankrate, and if you’re already an Ally Bank customer and want to stick with them, Ally Bank credit cards are worth a look.
The invitation-only Ally Unlimited Cash Back Mastercard is a straightforward 2 percent cash back card with no surprise fees, including no returned payment or over-limit fees. It also makes earning and redeeming rewards as simple as possible, with no limits on how much you earn, no expiration dates and no redemption minimum.
According to Ally Bank, the card may also be available with only fair credit, so if you’ve received a prescreened offer in the mail, it’s worth applying. You can also check if you’re a good fit for the card based on your credit history through CardMatch. If you’re able to get approved for this card, it could easily be the best cash back card available with an average credit score.
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Pros
- This card could be available to those with fair credit, making it a rewarding option for users with less-than-ideal credit scores.
- People new to credit or who aren’t used to navigating payment portals will appreciate that it doesn’t charge any fees for over-the-limit or returned payments.
Cons
- You’ll need to receive an online or mail offer before applying because it’s invitation-only.
- There is no sign-up bonus for new cardholders, making this card’s first-year value less than many other 2 percent cash back cards.
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The Alliant Cashback Visa Signature Credit Card presents one of the highest flat cash back rates available. However, it isn’t typically hailed as a leader of flat-rate cards because it’s a credit union card, which restricts it to members of Alliant Credit Union. Despite this, its low APR and high flat cash back rate make it a viable option for rewards maximizers hoping to cut down on interest rates and raise the bottom line on their rewards-earning potential.
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Pros
- This card has one of the highest flat cash back rates on all purchases, making it a great choice for people who don’t mind joining a credit union.
- Its potentially low variable APR can help cardholders prone to carrying a balance cut back on interest charges.
Cons
- It lacks an intro APR, limiting its first-year value for cardholders hoping to curb interest charges on a transferred balance or new purchases.
- You can only redeem a minimum of $50 at a time, which is much higher than redemption minimums on other cards — an already uncommon restriction.
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Despite its caveats regarding rewards, the Apple Card offers a decent flat rate for Apple customers who use Apple Pay. It earns 2 percent cash back when you use Apple Pay, so you’ll want to make sure vendors you shop with accept this payment service. And you can earn up to 3 percent back when you shop at Apple and select retailers (using Apple Pay).
If you’re loyal to Apple and often shop with vendors that take Apple Pay, this card is a great choice. However, it lacks value for anyone outside of the Apple ecosystem.
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Pros
- Earn a fair rate of cash back on just about any purchase using Apple Pay, with boosted rates for Apple purchases.
- Your purchases every day will add to your cash back balance, as opposed to lump-sum earnings at the end of each billing cycle.
Cons
- Its best cash back rates are reserved for when you shop with Apple and use Apple Pay.
- This card is not particularly useful for people who own non-Apple devices and who don’t shop at Apple.
How to choose the best 2 percent cash back card for you
While the rewards rates on these cards may be similar, each of these 2 percent flat-rate cards comes with unique perks, advantages and disadvantages. Here are some questions to keep in mind when comparing cards and planning how to maximize your flat-rate cash back card:
What’s the welcome bonus?
Welcome bonuses can be hard to come by on 2 percent cash back cards, so cards that offer them are at a distinct advantage. While the presence of a bonus shouldn’t be the only reason you pick one card over another, keep in mind the outsized value of these offers: You can typically earn around $200 as part of a sign-up bonus after only a $500 to $1,500 spend, which can be a great perk as long as you don’t overspend.
Since welcome bonuses are usually only available for the first two to four months, make sure it’s achievable in the given time limit and you don’t have to stretch your budget to fulfill it.
What are the perks?
This will probably be the most important part of choosing between flat-rate cards. Along with earning cash back, the best 2 percent cash back cards come with extra benefits and protections, including perks like purchase protection, food delivery subscription credits, cell phone insurance and more. As you’re considering which card is best for you, consider which perks would be most useful to you, whether they focus on travel, shopping, credit building and more.
How can I redeem rewards?
While you may earn cash back at the same rate, the potential value of your rewards can vary, especially when factoring in the different redemption methods. While some 2 percent cash back cards only let you opt for cash back redemptions in the form of statement credits or direct deposits, others give you the flexibility to redeem for travel, gift cards, online shopping and more. The key is how much value you get for your rewards with different redemption methods.
For example, your rewards may lose a lot of value if you opt for gift card or online shopping redemptions instead of cash back. On the other hand, you may get more value for your rewards if you pair your cash back card with a higher-tier rewards card and redeem for travel (as in the Chase Trifecta).
You may also face redemption limitations. Some cards only allow you to redeem for cash back after you’ve reached a certain rewards balance or only in certain increments. You’ll have to consider these restrictions to decide whether a card is worth it.
What’s next?
Use these Bankrate tools to help you find a card that suits your needs best.
Frequently asked questions
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A 2 percent cash back rate is a solid earning rate for credit card purchases, but not necessarily the best available. Some credit cards offer higher rates on all purchases or on specific spending categories. The best cash back card for you depends on your individual spending patterns and whether you’re willing to manage several cards or pay annual fees for greater rewards.
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A 2 percent cash-back card can be valuable if you frequently use it for everyday purchases and pay off the balance each month, offsetting the higher APRs that these cards typically have. The rewards can accumulate over time, but it’s important to consider your spending habits and financial goals to determine if it’s the right choice for you.
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Several credit cards offer 5 percent cash back in select categories. You’ll want to review the options that reward 5 percent back because many of them have different rewards categories, perks and benefits. The right one for you will reward its highest cash back rate in a category you already include in your regular spending.
The bottom line
If you’re looking for a simple way to earn a high rewards rate on all your purchases, you have more options than ever, including cards that carry sign-up bonuses, intro APR offers or low fees. Just be sure to consider all the details to find the right one for you. You can also use Bankrate’s CardMatch tool to find the best 2 percent flat-rate card based on your credit profile.
When choosing the best 2 percent cash back card for you, consider factors such as welcome bonuses, perks and redemption options. With the increasing popularity of these cards, it’s important to carefully compare all the details to find the right one for your financial needs.
*All information about the Alliant Cashback Visa Signature Credit Card, Apple Card and Ally Unlimited Cash Back Mastercard has been collected independently by Bankrate and has not been reviewed or approved by the issuer.
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