What is the best 2% rewards credit card?

There are 3 types of cash back credit cards: flat-rate cash back cards, cash back credit cards with tiered rewards, and cash back credit cards with bonus categories that change.

Each type is good for different styles of spending. With a bit of organization, the right combination of these types of cash back cards could also help you maximize your rewards-earning potential.... read full answer

3 Types of Cash Back Credit Cards:

1. Flat-rate cash back credit cards give cash back rewards at a single rate for all purchases. The best flat-rate cash back cards offer at least 1.5% cash back on all purchases, plus a signup bonus, with no annual fee.
2. Tiered cash back credit cards give cash back rewards at different rates depending on the amount spent over a given interval, or based on whether a purchase qualifies for a set group of bonus categories that does not change. For instance, a tiered cash back credit card might offer 2% cash back on all purchases, up to $10,000 spent in a year, and then give 1% cash back on all other purchases for the rest of the year. Or, another type of tiered cash back credit card might offer 4% back on grocery store spending, 3% back for restaurant purchases, and 1% back on everything else.
3. Bonus category cash back credit cards give higher cash back earning rates on specific types of purchases, which may include purchases from certain retailers or purchases that fit a certain theme. The types of purchases that qualify for bonus cash back usually change once per quarter. For example, cardholders might earn 5% cash back on bonus-category purchases, up to a quarterly spending limit, and 1% back on all other purchases. Bear in mind that some credit cards using bonus categories for cash back will require cardholders to activate the new categories every quarter, which can be a hassle.

Knowing which type of cash back credit card is right for you is a matter of how you spend your money, so it’s good to consider how likely you are to organize your spending around categories. If you’d rather not worry about spending categories or using different cards for different types of purchases, a flat-rate cash back card is what you want. On the other hand, if you don’t mind activating spending categories each quarter, you could benefit from a bonus category cash back credit card.

If you can handle more than one credit card, however, your options grow. You could use one tiered card for groceries only, for example, a bonus category card for different rewards-rich opportunities, and a flat-rate cash back card for everything else. A mixture of cash back credit card types can get you to another level of rewards, but only if you’re able to use several credit cards responsibly.

The best 2% cash back credit card is the Wells Fargo Active Cash® Card because it has a $0 annual fee and gives unlimited 2% cash rewards on purchases. It also offers an initial bonus of $200 cash rewards after spending $1,000 in the first 3 months.

For a rewards credit card, 2% cash back on everything is about the best you can aim for. That’s why Wells Fargo Active Cash is one of the best credit cards on the market right now. But there are a few other great 2%+ cash back credit cards to consider when shopping for the best deal.... read full answer

Best 2% Cash Back Credit Cards

At the end of the day, Wells Fargo Active Cash is the best 2% cash back credit card because it offers an unlimited 2% cash rewards rate on all purchases. Most 2 percent cash back credit cards put a cap on the amount you can earn with a 2%+ rate. Or they only give the rate on certain categories of purchases.

One of the best credit cards with cash back bonus rewards is the Blue Cash Preferred® Card from American Express. It offers a $250 statement credit for spending $3,000 in the first 6 months, plus 6% cash back on groceries (up to $6,000 spent per year) and streaming subscriptions, 3% on gas and transit, and 1% on other purchases.

There are plenty of credit cards that give bonus cash back rewards in certain purchase categories. Cardholders may receive extra value on gas, groceries, dining, entertainment, wholesale clubs and more. Other cards have bonus categories that change every quarter and may require activation, giving you the chance to earn big on different types of purchases every few months.... read full answer

Best Credit Cards with Cash Back Bonus Rewards

Lots of credit cards with cash back bonus rewards on purchases also offer an initial cash rewards bonus for spending a certain amount in the first few months. Plus, it’s good to remember that many credit cards without cash back bonus rates still give a solid cash back rate on all purchases.