Best 2% Cash-Back Credit Cards: Which Is Best for You?
Credit cards have plenty of unique incentives to make cardholders choose them over their competition. Different cards can offer rewards points, travel miles and other innovative perks. However, a cash-back credit card is the preferred option for many consumers. With a 2% cash-back card, anyone can earn while they spend, ultimately making their budget go further.
Here are some of the top 2% cash-back credit cards available today — and the details you need to make the choice that’s right for you.
1. Alliant Cashback Visa® Signature Credit Card
The Alliant Cashback Visa® Signature credit card is an attractive option that provides cash back with no upper limit and doesn’t charge an annual fee. This card doesn’t give precisely 2% cash back but instead provides 2.5% on the first $10,000 in eligible spending. Any spending after that earns 1.5% cash back.
The card offers attractive rates starting from % APR. Cardholders will have no problem accessing their other payment methods and digital wallets with support for Google Pay, Samsung Pay and Apple Pay.
One of the best features of this card is that it doesn’t restrict cash back to certain categories of spending. While many others only give cash back at certain stores or for certain purchases like groceries or gas, the Alliant Cashback Visa® Signature credit card carries no such restrictions.
However, getting the card does require joining Alliant credit union. Cardholders will need to set up an Alliant Checking account to get this card, and then qualify for Alliant High-Rate Checking to earn maximum rewards. For that, you must maintain an average daily balance of at least $1,000 in this account. This might seem restrictive, but it is optimal for anyone looking to link their services together.
Pros
Great 2.5% cash back on the first $10,000 in spending
No annual fees
Attractive APR
Cons
Requires checking account with Alliant
No special welcome offer
2. Citi® Double Cash Card
The Citi® Double Cash Card provides 2% cash back but does so in a unique way. Citi describes the bonus not as simply getting 2% cash back but as receiving 1% cash back twice. Cardholders receive 1% cash back when they make a purchase and 1% cash back when they pay it off.
In practice, that gives cardholders the same gains as any other 2% cash-back credit card, but it also adds a little incentive to pay off the balance sooner.
The card is very unrestrictive — it doesn’t have any mandatory purchase categories in order to get cash back. There’s no cap on cash back earnings, either, so you can make the most of the card for essentially any kind of spending.
The Citi® Double Cash Card is also very versatile. In addition to receiving cash back points as a statement credit, direct deposit or mailed check, you can redeem them for gift cards, travel or shopping at Amazon.com and other online retailers.
The APR for the card ranges from — nothing out of the ordinary. The card doesn’t have an annual fee but does have a foreign transaction fee of 3%. New cardholders can take advantage of an introductory APR offer. The Citi® Double Cash Card offers 0% for the first 18 months on balance transfers.
Pros
2% cash back as long as you don’t carry a balance
No annual fee
Introductory APR for balance transfers
Cons
APR offer is only for balance transfers, not purchases
Charges foreign transaction fee
3. Bread Cashback American Express Credit Card
You might not have heard of Bread Financial before if you’ve been exploring more conventional credit card issuers. The unique financial tech company focuses on co-branding, developing credit cards that offer specific benefits for consumers.
The Bread Cashback American Express credit card is a bit of a change from the company’s usual category- and brand-specific cards. It provides unlimited 2% cash back on any purchases, with no restrictions on which outlets, brands or categories you shop.
The APR ranges from variable, which is marginally worse than some of the other choices on this list.
However, it’s also the only American Express option. The company generally shies away from these types of offers, making the Bread Cashback American Express® credit card a rare opportunity to enjoy the security and other benefits that American Express has to offer in a cash-back card with no annual fee.
Another benefit is the control you have over cash back earnings. You can choose between having the rewards credited to your statement or direct deposited to a bank account.
Pros
Unlimited 2% cash back with no category restrictions
American Express security and benefits
No annual fee
Cons
No welcome offer
Less competitive APR
4. Capital One Spark Cash Plus
Unlike many of the other options on this list, Capital One Spark Cash Plus specifically pegs itself as a business card. The versatile card includes a number of features geared towards business use, including having no spending limits and no limit on its 2% cash back.
Spark One Cash Plus is a charge card, so you can’t carry a balance or pay for purchases over time. That means there isn’t any APR because the full balance must be paid every month. While this might be a deal-breaker for some, it’s a perfectly reasonable agreement for this type of business card.
A welcome offer provides a bit of additional incentive to choose this card and makes up for the $150 annual fee. There is a cash bonus of up to $1,000 for meeting spending thresholds in the first six months. You receive $500 if you spend $5,000 within three months and another $500 for spending $50,000 within six months.
Because this is a business card, it also provides free cards for employees so that all company spending earns 2% cash back. These employee cards aren’t just for facilitating transactions; they also give managers ways to track and monitor expenses.
While the Capital One Spark Cash Plus is strictly for businesses, it’s perfect for that use.
Pros
2% cash back on all purchases
Employee cards
Welcome bonus
Cons
Only for businesses
$150 annual fee
One of the most important things to keep in mind about 2% cash-back credit cards is that you must pay off your balance each month to get the most benefit. With higher-rate cards in particular, a single month’s interest can cancel out your cash back reward.
5. Synchrony Premier World Mastercard
Synchrony Bank provides a wide range of partnered credit cards for brands like Lowe’s, Ashley Furniture, Living Spaces and Pep Boys. Among its offerings is the Synchrony Premier World Mastercard, another 2% cash-back credit card that might have the benefits you’re looking for.
The card has no annual fees and offers a reasonable APR range of . As a World Mastercard, the card carries a variety of protections, from fraud to identity theft. This includes Mastercard’s regular identity monitoring, making this a great pick for travelers.
There are very few restrictions on this card, with no limit on the total cash back and no restrictions based on spending categories, so you never have to opt in to receive rewards or additional benefits.
The card also features a variety of additional discounts for services like DoorDash, Lyft and Hello Fresh.
Pros
Straightforward 2% cash back
No annual fee
A variety of unique offers and bonuses
Cons
Foreign transaction fee
High credit score requirements
6. SoFi Credit Card
SoFi is a relative newcomer to the credit card space. The online personal finance company offers a wide range of credit products, from credit cards to student loan refinancing, and it now even provides banking services.
The SoFi credit card rewards you 2% cash back plus many of the perks that consumers have come to expect from online finance, such as added benefits from brands like Lyft and DoorDash. The card doesn’t have any restrictions based on spending categories, and there are no annual fees.
In order to take advantage of the 2% cash back offer, you must enroll in other SoFi financial products. Every dollar spent accrues two reward points, which only provide their full value if you deposit them into a checking, savings, cryptocurrency, investment or loan account with SoFi.
For a limited time, you can earn an additional 1% cash back, for a maximum of 36,000 points, when you set up and maintain a qualifying direct deposit each month.
The SoFi credit card carries an APR range of , potentially not too shabby for those with the credit to enjoy the lower end. Cardholders who make 12 monthly payments in a row on time and meet minimum requirements can have their APR lowered by 1%.
Pros
2% cash back on all purchases
Earn 3% cash back with direct deposit for a limited time
No annual fee
Good APR
Cons
Additional SoFi accounts needed to receive full 2%
7. PayPal Cashback Mastercard®
Online shoppers might just have found their best cash back offer with the PayPal Cashback Mastercard®. This unique offering provides a bonus that ups cash back to 3% on purchases made through PayPal. Anyone who already uses PayPal could stand to gain a lot from this offer.
In addition to the unique benefits offered for PayPal payments, the card provides 2% cash back on all purchases not made through PayPal checkout. There are no further category restrictions, and the cash back is unlimited.
PayPal is currently offering an additional $100 cash back on the first $500 spent within 90 days of opening an account. With this bonus and great new features, this card is worth keeping an eye on.
Pros
2% cash back everywhere
3% cash back on PayPal purchases
No annual fee
Cons
Currently unavailable
Cash back only goes to their PayPal account
8. Fidelity® Rewards Visa Signature® Card
The Fidelity® Rewards Visa Signature® Card is a cash-back card that works with Fidelity’s various savings and investment products. To take advantage of the 2% offer, you must deposit your cash back into a qualifying Fidelity account — yours or a loved one’s. You can deposit all your cash back into a single account or divide it among up to five different accounts.
You can also redeem points for a variety of other rewards, including travel and merchandise, but at a reduced rate. With eligibility to deposit the full 2% into IRAs, 529 college savings plans and other investment accounts, the best way to use this card is to supplement long-term savings and investments.
There’s no annual fee and a low foreign transaction fee of 1%. This is a Visa Signature card, so cardholders receive a number of additional benefits. These include auto rental collision damage waivers, lost luggage reimbursement, travel accident insurance and roadside dispatch.
Pros
2% cash back anywhere
Visa Signature benefits
No annual fee
Cons
2% only when deposited in Fidelity accounts
How To Choose the Right Cash Back Card
These cards are all great options for specific individuals. To figure out which is the perfect fit, consider your own unique needs. Almost all of these cards provide additional benefits in some areas, so it makes sense to take a closer look at what these bonuses mean to you.
Take the time to study these great 2% cash-back credit cards carefully to make sure you’re getting the most out of your everyday spending. Different cards work best for different types of spenders, so it’s important to research the options before making a selection.
Daria Uhlig contributed to the reporting for this article.
Rates and fees are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of July 14, 2022.
Editorial Note: This content is not provided by the financial institutions mentioned. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by the financial institutions mentioned.
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