Have you ever found yourself confused by the rewards programs offered by the most prestigious rewards credit cards? Whether cash back or travel points, the most valuable lucrative rewards programs tend to be convoluted, making it difficult to figure out how to earn and redeem points.
By comparison, a good 2% cash-back credit card can be like a breath of fresh air. The rewards may not be as generous as some other cards, but it’s nice to get a consistent 2% reward – in cash – on all purchases, and without any additional thought or effort on your part.
With that in mind, here are ten of the best 2% cash-back credit cards available today.
Table of Contents
- Advantages of a 2% Cashback Credit Card
- 10 Best 2% Cashback Credit Cards
- 1. Citi Double Cash Card
- 2. Wells Fargo Active Cash Card
- 3. PenFed Power Cash Rewards Visa Signature Card
- 4. PayPal Cashback Mastercard
- 5. Fidelity Rewards Visa Signature Card
- 6. SoFi Credit Card
- 7. American Express Blue Business Cash™
- 8. Capital One Spark Cash Plus Card
- 9. Synchrony Premier World MasterCard
- 10. Bread Cashback American Express Credit Card
- Final Thoughts
Advantages of a 2% Cashback Credit Card
There are a couple of reasons a person would get a 2% cash back credit card when other cards pay up to 5% and more.
The first one is cost. Many 2% cash back cards don’t charge an annual fee, whereas cards with the highest rewards often have annual fees in the hundreds of dollars.
There’s also the simplicity factor. 2% cash back credit cards don’t make you jump through hoops to qualify for rewards. More prestigious cash-back cards limit their highest rewards to specific spending categories, which can change every few months.
With a majority of 2% cash back credit cards, you’ll earn unlimited 2% cash back on all eligible purchases.
10 Best 2% Cashback Credit Cards
Below is our list of the ten best 2% cash back credit cards. We’ve included a summary of the basic features of each card in the following table. More detailed information is provided for each card in the descriptions that follow.
| Credit Card | Annual Fee | Credit Required | Best For |
|---|---|---|---|
| Citi Double Cash Card | $0 | Good or Excellent | 0% introductory offer on balance transfers |
| Wells Fargo Active Cash Card | $0 | Good or Excellent | 0% introductory offer on purchases |
| PenFed Power Cash Rewards Visa Signature Card | $0 | Good or Excellent | Low APR |
| PayPal Cashback Mastercard | $0 | Good or Excellent | 3% cash back on PayPal purchases |
| Fidelity Rewards Visa Signature Card | $0 | Good or Excellent | Fidelity Investment customers |
| SoFi Credit Card | $0 | Good or Excellent | SoFi customers |
| Amex Blue Business Cash Card | $0 | Good or Excellent | Small business owners |
| Capital One Spark Cash Plus Card | $150* | Excellent | Travel rewards for small business owners |
| Synchrony Premier World MasterCard | $0 | Excellent | MasterCard Travel and Lifestyle Services |
| Bread Cashback American Express Credit Card | $0 | Good or Excellent | Easy rewards redemption |
1. Citi Double Cash Card
Cash Back Rewards: Unlimited 1% of eligible purchases + 1% upon payment.
Redemption Options: Statement credit, direct deposit, check, gift cards, travel, and Shop with Points at Amazon.com.
Sign-Up Bonus: N/A.
0% Introductory Offer: 0% introductory APR on balance transfers for 18 months.
Balance Transfer Fee: The greater of $5 or 3% of the balance transferred.
Foreign Transaction Fee: 3%.
The Citi Double Cash Card takes top honors with balance transfers at 0% for 18 months (transfers must be completed within four months of account opening.) It also has one of the simplest cashback arrangements possible, paying 1% at the time of purchase, then 1% of your monthly payments.
The card also has one of the most flexible rewards redemption options. It provides no fewer than six ways to redeem points, including statement credits and cash back via check or direct deposit into a linked bank account.
2. Wells Fargo Active Cash Card
Rewards: Unlimited 2% cash rewards on all eligible purchases.
Redemption Options: Offset eligible purchases, ATM cash back, gift cards, statement credit, deposit into your checking account, or apply toward a Wells Fargo mortgage.
Sign-Up Bonus: $200 cash rewards after spending $500 in purchases within three months of account opening.
0% Introductory Offer: 0% on both purchases and balance transfers within 15 months of account opening.
Balance Transfer Fee: The greater of $5 or 3% of each balance transferred within 120 days of account opening, then the greater of $5 or 5% of the balance transferred thereafter.
Foreign Transaction Fee: 3%.
The Wells Fargo Active Cash Card currently offers 0% APR on balance transfers and purchases for 15 months. It’s a straightforward cashback rewards card, paying unlimited 2% on all eligible purchases. It includes six cashback redemption options, including offsetting eligible purchases, ATM cash, or as a credit to your Wells Fargo home mortgage.
The card also comes with a $200 cash rewards bonus, which is easy to qualify for, and Visa Signature Hotels Collection benefits.
3. PenFed Power Cash Rewards Visa Signature Card
Rewards: Unlimited 2% cash back on all eligible purchases if the primary cardholder is a United States military member; otherwise, unlimited 1.5% cash back on all eligible purchases.
Redemption Options: Statement credit, deposit into your PenFed deposit account, or transfer to another financial institution.
Sign-Up Bonus: $100 statement credit when you spend at least $1,500 within 90 days of account opening.
0% Introductory Offer: 0% APR on balance transfers for 12 months on transfers completed within the first 90 days of account opening.
Balance Transfer Fee: 3% of the balance transferred.
Foreign Transaction Fee: 0%.
The PenFed Power Cash Rewards Visa Signature Card tops our list as the lowest APR card, at 17.99%. Combining this with no annual fee and the card benefits, it’s one of the better offers in this space.
However, to be eligible for unlimited 2% cash-back rewards, the primary applicant must be a United States military member. Otherwise, the rewards are limited to 1.5% of eligible purchases. Also, PenFed, which is a credit union, requires you to open a checking account.
The card’s redemption options are interesting. You can redeem your rewards for a statement credit or deposit them into your PenFed deposit account. You can also schedule monthly redemptions into an account at another financial institution.
4. PayPal Cashback Mastercard
Rewards: Unlimited 3% cash back on PayPal purchases + 2% on all other eligible purchases.
Redemption Options: Apply toward your PayPal balance.
Sign-On Bonus: N/A.
0% Introductory Offer: N/A.
Balance Transfer Fee: N/A.
Foreign Transaction Fee: 3%.
If you’re an avid PayPal user, you’ll love the PayPal Cashback Mastercard, which pays unlimited 2% cash back on all eligible purchases and unlimited 3% cash back on all eligible PayPal purchases. The cashback is credited to your account daily on completed purchases.
Unfortunately, there is no sign-up bonus or introductory APR. And the card does not offer balance transfers at all. You can redeem your rewards toward your PayPal balance.
5. Fidelity Rewards Visa Signature Card
Rewards: Unlimited 2% cash back on all eligible purchases.
Redemption Options: Travel, merchandise, gift cards, statement credit, or deposit to your Fidelity account.
Sign-Up Bonus: N/A.
0% Introductory Offer: N/A.
Balance Transfer Fee: The greater of $5 or 3% of each balance transferred.
Foreign Transaction Fee: None
You probably know Fidelity for their investment brokerage services. But the Fidelity Rewards Visa Signature Card is a top cash back card that offers five different ways to redeem rewards, including a direct deposit into a Fidelity investment account.
✨ Related: Best Cash Back Credit Cards
6. SoFi Credit Card
Rewards: Earn two points per dollar spent (each point is worth $0.01), or unlimited 3% cash back rewards when you use the card to book travel through SoFi Travel by Expedia.
Redemption Options: Credits to your SoFi Money, personal loan, and student loan refinance accounts; .5 cents per point when applied toward a statement credit.
Sign-Up Bonus: N/A.
0% Introductory Offer: N/A.
Balance Transfer Fee: The greater of $5 or 3% of each balance transfer.
Foreign Transaction Fee: 0%.
SoFi account holders can redeem the full value of each point by applying them as a credit to their SoFi account. You will be limited to a statement credit of just .5 cents per rewards point if you don’t have an account.
You’ll earn two points per dollar spent on eligible purchases and 3% when you book travel through SoFi Travel powered by Expedia.
According to SoFi’s Terms of Service, you can also earn points for any of the following activities:
- Logging into the SoFi mobile app.
- Spending on your SoFi World Debit Mastercard.
- Linking your non-SoFi accounts to SoFi Relay
- Signing up for SoFi Relay Credit Score Monitoring.
- Setting up direct deposit to your SoFi Checking, SoFi Savings, or SoFi Money account.
- Activating your SoFi Money Debit Card or your SoFi World Debit Mastercard.
- Recurring direct deposits into your SoFi Checking, SoFi Savings, or SoFi Money account.
- Setting up Billpay from your SoFi Money or SoFi Checking account.
7. American Express Blue Business Cash™
Rewards: 2% cash back on up to $50,000 in eligible purchases per calendar year, then unlimited 1% cash back on all eligible purchases thereafter.
Redemption Options: Cash back rewards are automatically credited to your statement each month.
Sign-Up Bonus: N/A.
0% Introductory Offer: 0% on purchases made using the card for the first 12 months.
Balance Transfer Fee: The greater of $5 or 3% of each balance transferred.
Foreign Transaction Fee: 2.7%.
American Express Blue Business Cash Card is designed specifically for business customers. It offers 2% cash back on the first $50,000 in eligible purchases each year and an unlimited 1% cash back on all eligible purchases thereafter.
There is no annual fee, and cash-back rewards are automatically credited to your monthly card balance. The card also has a 0% introductory APR on purchases for the first 12 months.
You can add employee cards, and their spending will increase your rewards. The card also comes with car rental loss and damage insurance, a benefit no longer offered on many popular credit cards.
8. Capital One Spark Cash Plus Card
Rewards: Unlimited 2% cash back on all eligible purchases, plus unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.
Redemption Options: Statement credit or check payment.
Sign-Up Bonus: $1,200 cash bonus after spending at least $30,000 using the card within three months of account opening
0% Introductory Offer: N/A.
Balance Transfer Fee: Not allowed.
Foreign Transaction Fee: 0%.
The Capital One Spark Cash Plus Card is designed for business owners and pays enhanced travel rewards. You’ll earn 2% cash back on all eligible purchases and 5% when you book hotels and rental cars through Capital One Travel. And like with the Amex Blue Card, you can provide cards to your employees.
It’s important to note that the Capital One Spark Cash Plus is a charge card, not a credit card. That means there is no preset credit limit, but your balance must be paid in full each and every month. It also means there’s no interest. And because it is a charge card, there is no option for balance transfers.
✨ Related: Best No Annual Fee Credit Cards with a Welcome Bonus
9. Synchrony Premier World MasterCard
Rewards: Unlimited 2% cash back on all eligible purchases.
Redemption Options: Statement credit.
Sign-Up Bonus: N/A.
0% Introductory Offer: N/A.
Balance Transfer Fee: The greater of $10 or 4% of the balance transferred.
Foreign Transaction Fee: 3%.
The Synchrony Premier World MasterCard offers unlimited 2% cash back on all eligible purchases, which can be redeemed as a statement credit. There is no annual fee, and the card comes with MasterCard Travel and Lifestyle Services.
Rewards redemptions are limited to a statement credit that’s automatically applied to your account balance. Note that the card requires you to have an excellent credit score, making this one of the more difficult cards to qualify for.
10. Bread Cashback American Express Credit Card
Rewards: Unlimited 2% cash back on all eligible purchases.
Redemption Options: Statement credit or a direct deposit into your bank account.
Sign-Up Bonus: N/A.
0% Introductory Offer: N/A.
Balance Transfer Fee: The greater of $10 for 5% of the balance transferred.
Foreign Transaction Fee: 0%.
The Bread Cashback American Express Credit Card offers unlimited 2% cash back on all eligible purchases and easy rewards redemption options, including a statement credit or direct deposit into your bank account.
The card has no annual fee and no foreign transaction fee. However, it does not offer a sign-up bonus.
Final Thoughts
If you’ve had enough of credit cards that require a flowchart to figure out how to earn and redeem rewards, you may want to consider a more straightforward 2% cash-back credit card.
While other credit cards pay higher rewards in certain categories, a 2% cash-back credit card offers generous rewards on all purchases.
If you’re struggling to decide which credit card to apply for, consider the redemption options. Some cards limit you to statement credits, while others provide several different ways to enjoy your rewards.
