Is 2% rewards good?

Question

Two percent cash back simply means that you will earn 2 cents in rewards for every dollar you spend with your credit card. One of the best 2% cash back credit cards is the Wells Fargo Active Cash® Card. The card also offers an initial bonus of $200 cash rewards after spending $1,000 in the first 3 months.

There are also several other great 2%+ cash back credit cards to consider when shopping for the best deal.... read full answer

Best 2%+ Cash Back Credit Cards

Rates & FeesOverall: Wells Fargo Active Cash® CardWells Fargo Active Cash® CardLearn MoreLearn Moreon issuer's website
Flat Rate Cash Back: Citi® Double Cash Card – 18 month BT offerCiti® Double Cash Card – 18 month BT offerLearn MoreLearn Moreon issuer's website
Rates & FeesTerms Apply Travel, Dining & Drugstores: Blue Cash Preferred® Card from American ExpressBlue Cash Preferred® Card from American ExpressLearn MoreLearn Moreon issuer's website
Cash Back With No Annual Fee: Chase Freedom Unlimited®Chase Freedom Unlimited®Learn MoreLearn Moreon issuer's website
Rates & FeesCategories of Your Choice: U.S. Bank Cash+® Visa Signature® CardU.S. Bank Cash+® Visa Signature® CardLearn MoreLearn Moreon issuer's website

You can also take a look at our editors’ latest picks for the best cash back credit cards to weigh your options.

How 2% Cash Back Works

The way 2% cash back works is simple: You make purchases on your card, and then rewards equaling 2% of those purchases appear in your account, which can sometimes take one to two billing periods. For example, if you spend $1,000 on purchases eligible for 2% cash back, you get $20 in rewards. Then, you can usually redeem that cash back as a statement credit or a deposit to a bank account, and sometimes for a check. Some issuers might even let you redeem your cash back directly for gift cards, travel or merchandise.

It’s important to note that some credit cards that are advertised as cash back cards actually give rewards in the form of points. However, you’ll be able to trade those points for cash back, usually at a rate of 1 point = 1 cent.

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Answer 1 · 2023-02-03 19:18:55

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Milvionne Chery Copeland, Writer

@milvionne_copeland • 02/03/23 This answer was first published on 07/27/22 and it was last updated on 02/03/23.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Yes, 2% rewards is good for a credit card, especially if you're earning at least 2% back on all purchases, as the average rewards card offers just 1% back. Several credit cards offer either 2% cash back on all purchases or points/miles worth 2% back, while many more cards offer 2% back only on certain types of purchases.

Credit Cards with 2% Back on Purchases

Wells Fargo Active Cash® Card
Citi® Double Cash Card – 18 month BT offer
PayPal Cashback Credit Card
Synchrony Premier World Mastercard®
PNC Premier Traveler® Visa Signature Credit Card (when you redeem for travel)
Capital One Venture Rewards Credit Card (when you redeem for travel)

Even though 2% rewards is above-average for a credit card, you can maximize your rewards by looking for cards that offer more in specific categories. To see more options, check out WalletHub’s editors’ list of the best rewards cards overall.

Is 2% rewards good?

Milvionne Chery Copeland, Writer

Credit Cards with 2% Back on Purchases

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