Best 2% Cash Back Credit Cards
Written by Dayana Yochim
Edited by Carolyn Kimball
Fact-checked by Andrea Coombes
A flat-rate, 2% cash back credit card is one of the most effortlessly lucrative rewards card setups, offering the average consumer who spends $1,000 a month on groceries, gas, dining, entertainment, travel, and other expenses an easy $240 in cash back per year.
It’s no coincidence that eight of the top 10 highest-paying rewards cards in investor.com’s extensive database are flat-rate 2% cards and not bonus-category cards that pay a higher rewards rate on a few select spending categories:
- Most 2% cards have no rewards spending caps, which means a cardholder’s cash back earning potential is unlimited. For comparison, most tiered-rate rewards cards pay the bonus rate only up to a certain amount in purchases each month, quarter or year.
- Tiered-rate cards (like those tempting 5% cash back cards) pay just 1% cash back on purchases outside of the defined bonus categories. Because flat-rate rewards cards have no bonus tiers, everything you buy — gas, groceries, dining, entertainment, etc. — qualifies for 2% cash back.
Our conclusion based on the research: 2% cash back on all of your credit card purchases may not sound like as good a deal as earning 3%, 4% and 5% on some of your purchases. But consumers whose monthly spending spans multiple purchase categories are often better served using a flat-rate 2% cash back card.
Best 2% Cash Back Credit Cards
Despite outward appearances, not all 2% rewards cards are alike. To find the best 2% cash back card, we compared a dozen cards in this rewards category, noting key differences among flat-rate rewards card offers. For example, some cards require customers to maintain an additional deposit or investment account at the bank to earn the 2% rewards rate; others pay a lower cash back rate on certain redemption options.
We considered ease of use, redemption rules, fees, welcome bonuses and other factors to choose the best 2% cards for different types of customers. Our picks:
- Best Overall + Sign-up Bonus: Wells Fargo Active Cash
- Best Overall, honorable mention: PayPal Cashback Mastercard
- Best for Investors: Fidelity Rewards Visa Signature Card
- Best Credit Union Card: Alliant Cashback Visa Signature Credit Card
- No-Annual-Fee Amex Card: Bread Cashback American Express Card
- Best for Business Owners: TD Business Solutions Credit Card
Why trust our best-in-class credit card picks?
Our editorial decisions are independent, impartial, and never influenced by affiliate partner relationships. (Translation: No provider can buy its way onto a recommendations list or pay for more flattering coverage.) We crunch numbers, scour fine print and rely on our on-staff topic experts to deliver guidance that enriches readers. See How We Make Money for more on how we roll.
See a credit card that’s worthy of a slot in your wallet? Take a moment to confirm card details on the issuer’s site before you apply.
Best Overall — Wells Fargo Active Cash
Wells Fargo Active Cash Card
Read review
😀 What we like: Unlimited 2% cash back on all qualifying purchases with no annual fee, sign-up bonus, 0% intro APR on purchases and balance transfers plus lots of reward redemption options.
🙁 What we don’t like: The 3% foreign transaction fee (no bueno for world travelers). Reward redemption minimums apply.
The Wells Fargo Active Cash Card is our top pick among 2% cash back credit cards, and the 2024 winner of two investor.com Annual Awards for 2024: Best No-Fee, No-Hassle Cashback Card and Best Unlimited 2% Cashback Card.
What sets the Wells Fargo Active Cash Card apart from the competition is its sign-up enticements: Spend $500 within the first three months and you’ll earn $200. (Fun with math: That’s a 40% cash back rate.) The 0% introductory APR on purchases and balance transfers for more than a year is also a sweet deal.
After the honeymoon period, the Wells Fargo card provides ongoing perks, most notably access to fancypants extras — like 24/7 concierge service and access to room upgrades and other freebies — courtesy of the card’s Visa Signature benefits. Plus, reward redemption options are plentiful and include applying it as a statement credit, using it to offset purchases, buying merchandise, gift cards and travel, and making charitable donations. Keep in mind that Wells requires cardholders to rack up $20-$25 in rewards before cashing in.
About that welcome bonus: Given the growing competition among 2% cash back cards, more issuers may try to woo customers away from Wells Fargo by offering welcome bonuses and 0% intro APRs to new cardholders, as Citi recently did with the Citi Double Cash Card. Just be sure to compare terms: For example, Citi currently offers a longer no-interest period on purchases and balance transfers than Wells, but its sign-up bonus requires a much larger spend to earn it.
Read our full Wells Fargo Active Cash Card review.
Best Overall, Honorable Mention — PayPal Cashback Mastercard
😀 What we like: Unlimited 2% cash back rate on all purchases for no annual fee. 3% unlimited cash back with e-tailers that offer PayPal as a payment option.
🙁 What we don’t like: No welcome bonus or introductory 0% APR on purchases or balance transfers. 3% foreign transaction fee.
Among the handful of cards that pay 2% cash back on all purchases, the PayPal Cashback Mastercard, issued by Synchrony Bank, is one of the few that doesn’t require cardholders to jump through a bunch of hoops to earn it. The only thing that’s required to apply and redeem rewards is a PayPal account, which I encourage you to use in tandem with this card because…
The PayPal Cashback Mastercard’s special sauce is the bonus rewards rate offered on Paypal-enabled purchases — 3% unlimited cash back vs. the standard 2%. Here’s how it works: Link the PayPal Cashback Mastercard to your PayPal account in the app, designate it as your preferred payment method, and choose “PayPal” as your option when checking out at retailers that offer the option.
The drawback of choosing the PayPal Cashback Mastercard over the Wells Fargo Active Cash Card is that you’ll pass up the chance to earn a welcome bonus and 0% introductory APR on purchases and balance transfers. On the plus side, the card has no minimum reward redemption requirements, and cash back earnings are transferable within three days of making a purchase.
» Credit card cage match!: See PayPal vs. Wells Fargo to compare the pros and cons of each 2% rewards card.
Editor's note: The SoFi Unlimited 2% Credit Card was also in the running for an "honorable mention" in this category, especially since it did away with the requirement to deposit earnings into a SoFi account to up the 1% cash back rate to 2%. Like the PayPal Mastercard, the SoFI credit card offers a 3% rewards tier: But it only applies to SoFi Travel Portal purchases which isn't as universally appealing as PayPal's 3% back on PayPal-enabled purchases.
Read our full PayPal Cashback Mastercard review.
Best for Investors — Fidelity Rewards Visa Signature Card
😀 What we like: Easy way to pad your investment accounts with rewards card earnings. Qualified cardholders eligible for a rewards rate boost (earning up to 3% unlimited cash back). Allows redemptions to be deposited in a loved one’s Fidelity account.
🙁 What we don’t like: 2% rate applies only if rewards are redeemed as a deposit into a qualifying Fidelity account. High-ish reward redemption minimums (5,000 points/$2,500 spend). No welcome bonus or 0% introductory APR on purchases or balance transfers.
The Fidelity Rewards Visa Signature Card practically forces cardholders to put their cash back earnings to good use. It ties its 2% unlimited rewards rate to just one redemption option: depositing earnings directly into an eligible Fidelity account — your own, or a friend or family member’s. You’ll earn a much lower rewards rate if you choose to use your cash back for a statement credit, gift cards, merch or travel option.
The card really pays off for Fidelity Rewards+ Wealth Management clients. If you have at least $250,000 in assets with Fidelity, you can qualify for a higher unlimited cash back rate of 2.25% and up to 3% on all purchases for those who maintain higher investment account balances. Eligible accounts include most nonretirement accounts (e.g., Fidelity brokerage account) as well as traditional IRAs, Roth IRAs, rollover IRAs, SEP IRAs, Fidelity Charitable Giving Accounts, Fidelity HSAs, and Fidelity-managed 529 college savings plans.
Read our full Fidelity Rewards Visa Signature Card review.
Best Credit Union Card — Alliant Cashback Visa Signature Credit Card
Alliant Cashback Visa Signature Credit Card
Read review
😀 What we like: 2.5% cash back on up to $10,000 in purchases per month and an unlimited 1.5% on higher amounts. Comes with Visa Signature perks, no foreign transaction fees and the feel-good vibes from banking with a credit union.
🙁 What we don’t like: Requires maintaining an Alliant high-yield checking account to qualify for the 2.5% cash back rate after first 100 days of card ownership.
The difference between earning 2% versus 2.5% cash back may not sound like much, but that 25% rewards rate bump can add up over time. A consumer who spends $1,000 a month using the Alliant Cashback Visa Signature card will get an additional $60 in cash back per year than with any of the other 2% flat-rate cards recommended on this page.
Here’s the catch: Qualifying for the Alliant Cashback Visa’s 2.5% rewards rate requires maintaining a $1,000 average daily balance in an Alliant high-yield checking account and completing one deposit per month; otherwise, all purchases will earn the 1.5% base rate. And, like all credit unions, membership is required.
But wait! Alliant makes it easy to qualify for credit union membership by making a $5 donation on your behalf to its foundation, which supports digital access resources for underserved communities. (Kudos to Alliant!) Plus, there’s no minimum monthly deposit requirement to the companion high-rate checking account, and it can be completed via direct deposit, ATM/mobile check deposit, or setting up an automatic monthly transfer (any amount) from another bank account.
Read our full Alliant Cashback Visa Signature card review.
Best No-Annual-Fee Amex card: Bread Cashback American Express Card
😀 What we like: Unlimited 2% cash back on all purchases without the annual fee. Charges no foreign transaction fees; no redemption minimums. Offers access to American Express dining, travel and shopping benefits.
🙁 What we don’t like: No welcome bonus or 0% introductory APR on purchases or balance transfers.
There are a few key differences between Bread’s 2% cash back Amex, issued through Comenity Bank, and its close competitors — the Wells Fargo Active Cash Card and the PayPal Cashback Mastercard. The most noteworthy is its lack of foreign transaction fees. Avoiding that 3% fee the other cards charge will save travelers some serious coin when spending outside of the U.S. or making purchases from foreign-based retailers.
Another plus is Bread Amex’s no-fuss reward redemption rules. There are no redemption minimums (Wells Fargo’s start at $20, depending on how you redeem) nor extra steps to get your hands on the cash (PayPal requires cardholders to transfer rewards cash to a linked bank account to use earnings outside of the payment service).
I wish Bread offered a sign-up bonus or 0% introductory APR on purchases and balance transfers, but neither is currently on offer. However, its partnership with American Express does provide cardholders access to some valuable travel and dining discounts and other Amex-curated offers throughout the year.
Read our full Bread Cashback American Express Card review.
Best 2% Cash Back Card for Business Owners — TD Business Solutions Credit Card
😀 What we like: Unlimited 2% cash back on all purchase categories for no annual fee. Offers a healthy sign-up bonus and other value adds for new cardholders.
🙁 What we don’t like: 3% foreign transaction fee, no 0% intro APR on purchases or balance transfers, $25 reward redemption minimum.
Unlike other 2% cash back business credit cards, the TD Business Solutions Credit Card doesn’t cap the amount of cash back cardholders are eligible to make. The unlimited rewards-earning potential — and a competitive welcome bonus — make it a compelling offer for small businesses seeking an easy-to-manage rewards card.
In addition to a traditional welcome bonus, the TD Business Solutions Card has been known to pitch valuable sign-up goodies to woo new cardholders. A recent offering: A whopping 5% cash back on up to $10,000 in eligible purchases — up to $500 in extra earnings — during the first six months of card membership.
Read our full TD Business Solutions Credit Card review.
Which credit cards offer 2%?
Here’s a snapshot of credit cards that pay 2% cash back (or more) on purchases and what type of cardholder each is best suited for.
| Card | Best for | Cash back rate | Good to know | Annual fee | Welcome bonus |
| Alliant Cashback Visa Signature Credit Card | Credit union members | 2.5% cash back on up to $10,000 in purchases per billing cycle when you maintain an Alliant checking account | 1.5% unlimited rate for customers who don’t meet checking account requirements | $0 | N/A |
| Ally Unlimited Cash Back Mastercard | Those invited to apply | Unlimited 2% cash back on all purchases | Requires an invitation to apply | $0 | N/A |
| American Express Blue Business Cash Card | Small businesses | 2% cash back on up to $50,000 in purchases each year | Charges 2.7% foreign transaction fee | $0 | $300 |
| Apple Card | Apple Pay users | 2% unlimited cash back on transactions using Apple Pay | Non-Apple Pay purchases earn 1% | $0 | N/A |
| Bank of America Unlimited Cash Rewards | B of A/Merril Edge customers with Platinum or Platinum Honors Preferred Rewards status | 2.25%-2.62% unlimited cash back for qualifying Preferred Rewards members | 1.5% cash back rate applies to non-Preferred Rewards cardmembers | $0 | $200 |
| Bread Cashback American Express Card | No-annual-fee Amex | 2% unlimited cash back on all qualifying purchases | Charges no foreign transaction fees | $0 | N/A |
| Capital One Spark 2% Cash Plus | Pay-in-full small businesses | 2% unlimited cash back on all qualifying purchases | Balances must be paid in full each month | $150 | Up to $3,000 |
| Citi Double Cash Card | Pay-in-full cardholders | 2% unlimited cash back (eventually) | Pays 1% when you buy and 1% when you pay off your balance | $0 | $200 |
| Fidelity Rewards Visa Signature Card | Investors | 2% cash back when points are redeemed in an eligible Fidelity account | Lower rewards rate on other redemption options | $0 | N/A |
| PayPal Cashback Mastercard | Best overall and for PayPal users | 2% unlimited cash back; 3% unlimited on PayPal purchases | Requires PayPal account to redeem rewards | $0 | N/A |
| PenFed Power Cash Rewards | Members of the military | 2% unlimited cash back for PenFed Honors Advantage members | 1.5% cash back applies to non-military members who do not maintain a PenFed checking account | $0 | $100 |
| SoFi Credit Card | SoFi account holders | 2% cash back on all purchases when redeemed as a statement credit or in a SoFi account | 3% cash back on purchases in the SoFi Travel Portal | $0 | N/A |
| TD Business Solutions Credit Card | Business owners | 2% unlimited cash back on all qualifying purchases | $25 reward redemption minimum applies | $0 | $250 |
| Wells Fargo Active Cash Card | Best 2% card overall | 2% unlimited cash back on all qualifying purchases | $25 reward redemption minimum applies | $0 | $200 |
Is 2% cash back a lot?
Some rewards card ninjas may scoff at “settling” for 2% cash back on all purchases instead of using a bonus category card that pays a higher rate on certain spending categories like gas, groceries, travel and dining. But mathematically speaking, a flat-rate 2% cash back card is more profitable overall for many consumers for one simple reason: Tiered-rate cards pay a lowly 1% cash back on all purchases that don’t qualify for the bonus category cash back rate.
We rank-ordered the cash back credit cards in our database based on how much each pays out per year based on average consumer expenditure data from the U.S. Bureau of Labor Statistics. The result: 10 out of 10 of the top-paying credit cards were flat-rate, no-annual-fee rewards cards offering 2% to 2.62% unlimited cash back.
investor.com Quick Tip: Dynamic duos
Talk about power couples: Pairing a 2% cash back credit card with a bonus category card is the key to maximizing your rewards earning potential. Use the tiered-rate card solely for purchases that qualify for the bonus rewards rates (like gas, groceries, dining, travel). Then whip out your 2% cash back card to pay for non-bonus category items that would otherwise earn just the 1% base rate with your bonus card.
What credit score do I need for a 2% cash back credit card?
To qualify for a rewards credit card you typically need “good” to “excellent” credit. Translation: a minimum credit score of 670 points on the FICO scale and 661 on the newer VantageScore model.
Some banks state upfront that only applicants with “excellent” credit scores are likely to be approved for the card. The higher bar for “excellent” credit means a FICO score above 740 and a VantageScore higher than 781.
investor.com Quick Tip: Check your odds of approval
Some credit cards offer “preapproval” — the opportunity to see if a potential customer is likely to qualify for a particular card. Filling out this type of application will not impact your credit score like a regular application will. (It may, however, open you up to a barrage of marketing emails.) If that option isn’t available, check your own credit score for free. Doing so has zero effect on your score. Plus, it lets you know if you need to work on improving your credit score.
Is 2% cash back really worth it?
Earning 2% back on all purchases is one of the best credit card rewards programs out there — yes, even in a world where cards are offering 3% to 5% cash back on a range of qualifying purchases.
Three things make flat-rate 2% cash back cards outshine the the competition:
- The same rewards rate applies to all purchases, regardless of spending category. Tiered-rate cards pay a measly 1% cash back on spending that falls outside of the chosen bonus categories.
- The cash back rate is unlimited, meaning all purchases — not just a certain dollar amount per month, quarter or year — earn 2%.
- It’s easy to find a rewards card in this category that charges no annual fee, meaning there are no out-of-pocket costs to carrying a 2% card in your wallet.
Mathematically speaking, the difference between what the average consumer can earn on a tiered-rate rewards card versus a flat-rate one has turned me into a flat-rate cash back credit card evangelist. When we ran average consumer spending data through our credit card calculator, eight of the 10 highest-paying rewards cards were 2% cash back cards.
If gas, groceries, dining or travel are typical big-ticket purchases in your household, a card that pays 5% cash back on one of those spending categories makes a good companion for a flat-rate 2% credit card.
Methodology: How we chose the best 2% cash back credit cards
We chose the best 2% cash back credit cards based on data from the investor.com credit card rewards calculator and research into each card’s rewards program and terms and conditions by our in-house subject matter experts.
Our evaluations include:
- Cash back program requirements
- Reward redemption options
- Bonus spending caps
- Fees
- Welcome bonuses and balance-transfer offerings
See more on how we test.
For a customized cash back rewards estimate, enter how much you spend each month into the credit card calculator (or business card database) to see exactly how much you would earn in rewards from all the flat-rate and bonus category cards in our database.
Popular Credit Card Guides
- Best Credit Cards for Foodies 2024: Go Big on Dining & Groceries
- Credit Card Rewards Calculator 2024
- Best Gas Rewards Cards 2024: Tank Up, Road Warriors
- Best 5% Cash Back Credit Cards
- Best Cashback Credit Cards of 2024
- Best Flat-Rate Cashback Credit Cards 2024: Low Hassle, Easy Money
Popular Credit Card Reviews
- BMO Harris Bank Cash Back Mastercard Review
- Capital One Quicksilver Rewards for Good Credit Card Review
- Alliant Cashback Visa Signature Card Review
- Bread Cashback American Express Card Review
- Prime Visa Review
- Bank of America Customized Cash Rewards Card Review
- Fidelity Rewards Visa Signature Card
- Sam's Club Mastercard Review
- Truist Enjoy Cash Card Review
- Ally Everyday Cash Back Mastercard Review
- Sallie Mae Evolve Card Review
- Blue Cash Everyday from American Express Card Review
- SoFi Unlimited 2% Credit Card Review
- American Express Cash Magnet Card Review
- PayPal Cashback Mastercard Review
- Venmo Credit Card Review
- Credit One Platinum Rewards Visa with No Annual Fee Card Review
- Citi Double Cash Card Review
- Capital One SavorOne Rewards Card Review
- Chase Freedom Flex Card Review
- Navy Federal cashRewards Credit Card Review
- Upgrade Triple Cash Rewards Card Review
- Ally Unlimited Cash Back Mastercard Review
- Costco Anywhere Visa Card by Citi Review
- Capital One Spark 1.5% Cash Select Card Review
- PNC Cash Rewards Visa Card Review
- Bank of America Unlimited Cash Rewards Card Review
- Chase Freedom Unlimited Card Review
- Apple Card Review
About the Editorial Team
Dayana Yochim has been writing (articles, books, podcasts, stirring speeches) about personal finance and investing for more than two decades, focusing on bringing clarity and the occasional comedic aside to what is often a murky, humorless topic. She’s written for NerdWallet, The Motley Fool, HerMoney.com, Woman’s Day, Forbes, Newsweek and others, and been a guest expert on "Today," "Good Morning America," CNN, NPR and wherever they’ll hand her a mic.
Carolyn Kimball is Managing Editor for Reink Media Group and the lead editor for content on investor.com. Carolyn has more than 20 years of writing and editing experience at major media outlets including NerdWallet, the Los Angeles Times and the San Jose Mercury News. She specializes in coverage of personal financial products and services, wielding her editing skills to clarify complex (some might say befuddling) topics to help consumers make informed decisions about their money.
Andrea Coombes has 20+ years of experience helping people reach their financial goals. Her personal finance articles have appeared in the Wall Street Journal, USA Today, MarketWatch, Forbes, and other publications, and she's shared her expertise on CBS, NPR, "Marketplace," and more. She's been a financial coach and certified consumer credit counselor, and is working on becoming a Certified Financial Planner. She knows that owning pets isn't necessarily the best financial decision; her dog and two cats would argue this point.