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In recent times, the financial landscape has witnessed a surge of 2% cash back credit cards launched by major issuers. These cards, designed to reward every card purchase, have entered the market with a fresh perspective, offering a notable advantage: no annual fees. Simultaneously, a wave of new cash back credit cards has emerged, catering to individuals aiming to build or rebuild their credit history. This development is great news for consumers.
In a world still grappling with the aftermath of the global pandemic, air travel slow to rebound to pre-pandemic levels, making cash back cards an enduring preference among consumers. The competition for consumer attention has intensified, driven by the introduction of various 2% cash back credit cards over the past two years.
While Capital One’s Quicksilver Card, famously endorsed by Samuel L. Jackson, is credited with pioneering flat cash back earnings for purchases exceeding 1% in the mass market, an array of issuers has now ventured into the competitive 2% cash-back landscape, without burdening customers with annual fees.
Fintechs enter the arena: Tailoring Cash Back Cards for average credit scores
As customers revel in the convenience of a flat 2% or higher cash back on purchases, the simplicity of this earning structure has not gone unnoticed. While most major credit card issuers target prime credit score holders (670+), several fintech companies such as Upgrade, Inc. have rolled out cash back cards offering up to 3% cash back card to customers with average credit scores. These cards not only enhance credit scores but also deliver cost saving options for making large purchases..
Chart of Market Leading Cash Back Credit Cards broken out by Targeted Credit Score
Can consumers with less than perfect credit get cash back credit cards?
The short answer is yes. Those with credit scores of 600 or higher can embrace the Upgrade Triple Cash credit card, which offers 3% cash back on auto, home, and health-related purchases. Alternatively, the Upgrade Cash Rewards card guarantees 1.5% cash back on all purchases, presenting remarkable options for individuals with less-than-perfect credit.
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Harnessing Combined Power: Maximizing Cash Back Opportunities
Beyond the allure of a flat 2% cash back, there exist cash back cards boasting higher than 2% earnings in specific categories, often capped at a monthly or quarterly spend. For enthusiasts of cash back rewards, an effective strategy involves coupling a 2% cash back card with one featuring bonus categories, yielding more than 2% cash back for select expenditures such as dining, groceries, fuel, and home improvement. In the following sections, we delve into a comprehensive discussion of strategically pairing cards to amplify cash back potential.
Our top recommendations: Unveiling the Premier 2% Cash Back Cards
After a meticulous review, Credit and Cents is proud to present our curated selection of no annual fee 2% cash back cards. These recommendations cater to individuals across the nation and typically do not necessitate membership for application. While certain credit unions offer similar no annual fee cards, exclusions are made due to the membership prerequisite. The article also encompasses supplementary cash back cards deserving of consideration. For our discerning readers, we extend our analysis to encompass recommended 2% cash back credit cards tailored for small businesses.
Wells Fargo Active CashSM Credit Card – a new vanguard of 2% earn cards
Wells Fargo’s introduction of the Active Cash credit card last year challenged the dominance of Citi’s Double Cash, historically the leader in the 2% cash back domain. With immediate 2% earnings at the close of each billing cycle, the Active Cash card surpasses its competitors in terms of earning simplicity.
Lets take a look at the current offer and structure of the Wells Fargo card:
Intro Offer
The card entices customers with a $200 cash rewards bonus upon $1,000 worth of purchases in the initial three months, further sweetened by an introductory 0% APR for Purchases and Balance Transfers, extending to 15 months from account opening.
Earn
2% cash rewards are earned for every net purchase dollar, free from caps or complexities.
For APRs and Credit Scores needed please see Table 1 below.
Features and Benefits to be aware of:
FX Fee
3% (unfortunately this will cost the cardholders when using the card outside the US or for non-US $ purchases). For overseas travel, you can pair the Active Cash card with the Upgrade Triple Cash card or the Upgrade Cash Rewards card. The Upgrade cards have no annual fees and no foreign transaction fees. Click here to apply or to learn more.
Redemption
Cash redemptions through a Wells Fargo ATM or a rewards redemption to an eligible Wells Fargo account from a Wells Fargo ATM are redeemable in $20 increments only.
Additional Noteworthy Benefit
Cell Phone Ins – Cellular Telephone Protection (which is a supplemental coverage) can reimburse the eligible Wells Fargo credit card customer for damage to or theft of a cell phone. Reimbursement is limited to the repair or replacement of your original cell phone, less a $25 deductible with an allowable maximum of two paid claims per 12 month period. Each approved claim has a benefit limit of $600. Also, important to note that this protection is only available when cell phone bills are paid from the Wells Fargo Active Cash credit card (or their other consumer credit cards).
Bottom-line
The Wells Fargo Active Cash Card is a market-leading cash back card for customers with a good credit score (>670). For cash back enthusiasts however, there are opportunities to pair the Wells Fargo Active card with the Upgrade credit cards for higher cash back on certain merchant categories, as well as for no foreign transaction fees for non-US dollar purchases.
Best feature (s) – simplicity of earning 2% straight and cell phone insurance.
The ideal scenario is for the cash back enthusiasts to use one of the above bonus category cards for those (higher earn) categories and the 2% card for everything else.
Citi Double Cash Card – effortless cash back earnings
In 2014 when Citi introduced the Citi Double Cash, it created a market leader in the cash back arena with the high earn and an above average 0% intro offer for Balance transfers.
Earn
While not a traditional 2% cash back card, the Citi Double Cash Card offers unlimited 1% earnings upon purchase and an additional 1% upon payment, rendering it an appealing choice for cash back enthusiasts. Ideal for those with a credit score of 670 and above, the card stands out with its straightforward approach.
Noteworthy Features
The appealing 18 month 0% intro offer applies to Balance Transfers only and not to purchases.
FX Fee
The card has a 3% foreign transaction fee. If you use this card for frequent non US dollar (i.e. foreign) purchases, the costs can add up.
Penalty APR
Your APR may jump to 29.99% (i.e. the card has penalty APR) for any missed or late payments. Setting up auto pay for paying the monthly credit card bill is highly encouraged with this card.
Bottom-line
The Citi Double Cash is a solid option for those seeking to earn unlimited 2% without having to manage merchant categories bonuses. Can be paired with the Upgrade Triple Cash credit card for higher bonus category earn.
PayPal Cashback Mastercard®: empowering online shoppers
Designed for PayPal account holders, the PayPal Cashback Mastercard® offers an impressive 2% cash back on purchases, without annual fees or foreign transaction charges. The card’s integration with PayPal accounts streamlines cash back redemptions, enabling swift transfers to linked bank accounts.
Although, you can’t redeem your cash back as a statement credit or in the form of a paper check, you can deposit the cash back earned into your PayPal Cash or PayPal Cash Plus account and then transfer to your bank account (or debit card) linked to your PayPal account.
There are no intro APR offers and no intro bonus being offered at this time.
Table 1 – Summary of key features of the industry leading cash back cards
| Wells Fargo Active Cash | Citi Double Cash | Paypal Cash Back Mastercard | Upgrade Triple Cash | |
| Category Bonus | None | None | None | Yes (Auto, Home, Health) |
| APR1 | 17.24%-27.24% (Var) | 16.24%-26.24% (Var) | 16.49%-28.49% (Var) | 14.99%-29.99% |
| Foreign Transaction Fee | 3% | 3% | None | None |
| Approximate Credit Score For Approval | 670-850 | 670-850 | 670-850 | 620-850 |
| Ability to convert credit limit into a fixed rate loan | No | Yes | No | Yes |
| Late Fees Apply for Late Payments | Yes | Yes | Yes | No |
| Penalty APR for missed or late payments | No | Yes | No | No |
1APRs are as of Sep 23, 2022. Please check issuer sites for updated rates.
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Other Cash Back cards offering 2% include:
TD Bank
The recently introduced TD Double Up Credit Card allows you to earn 1% cash back on purchases, plus 1% cash back when you redeem rewards into an eligible TD Bank deposit account. It is currently being offered with a $150 sign up bonus, and an intro APR of 0% for 15 months for Balance Transfers. After the intro period, APR ranges between 14.99% and 24.99% (variable, based on the cardholder’s credit worthiness). There is a 3% foreign transaction fee for non US dollar purchases. Overall, this card may make sense for existing TD Bank customers, as without a TD bank account, you can earn only 1%.
First National Bank of Omaha (FNBO)
FNBO offers 2% cash back on every purchase with the Evergreen by FNBO Rewards Visa Card. It is open to applications nationwide, and currently offers a $200 bonus. The card also comes with an 0% intro APR for 12 months for Purchases and Balance Transfers. APR range (14.99% – 23.99% variable, based on creditworthiness of the cardholder) is comparable to similar cash back cards. There is also a 3% FX fee.
Bonus feature – you don’t need an FNBO bank account to apply for the card.
For Apple Pay users
The no annual fee Apple Card actually offers 3% cash back on Apple purchases and certain retailers, and offers 2% cash back on all other purchases only if you make your purchases via Apple Pay on your iPhone, otherwise its only 1% cash back if the physical Apple Card is used. Not all merchants in the US accept Apple Pay which is a major disadvantage for this card’s earn. One notable feature however, is that when it comes to earning and redeeming cash back, rewards are credited daily and can be used more or less immediately. Cash back earned can be redeemed thru the Apple Pay app and deposited into your bank account.
This card does not charge a foreign transaction fee for non US dollar purchases, and does not have a late fee. This card is currently not offering any intro APRs or a sign up bonus.
Apple Card is issued by Goldman Sachs Bank USA.
For Fidelity customers
With the no annual fee Fidelity® Rewards Visa Signature® Card you earn 2 points for every eligible dollar spent, which equals 2% cash back when deposited automatically into a linked Fidelity Investments regular brokerage account, individual retirement account or 529 college savings plan.
The card does not offer a sign up bonus or an intro APR. FX fee is 1%.
The Fidelity Rewards Visa Signature card is issued by Elan Financial Services.
Small Business Owners: Capitalizing on 2% cash back gains
While the article predominantly delves into personal credit cards, it also offers insights into recommended small business cards featuring 2% earnings.
American Express Blue Business Cash
This no annual fee credit card offers 2% earn on the first $50,000 spend annually. Beyond the $50,000 spend, the earn rate drops to 1%. Currently there is a $250 introductory bonus offer. The card offers 0% introductory rate for purchases for 12 months. APRs vary between 13.24%-19.24% (variable). Foreign transaction fee is 2.7%. Notable feature is that cash back earned is credited automatically as statement credit.
American Express Blue Business Plus
The difference between this card and the Cash version is that this no annual fee card provides 2x Membership Rewards points on the first $50,000 annual spend, after that it is 1x. Currently there is a 15,000 Membership Points as an introductory bonus. The 0% intro for 12 months and 13.24%-19.24% (variable) APR with 2.7% foreign transaction fee. The Membership Rewards points can be redeemed for travel, gift cards and statement credit.
Given that there is more flexibility with redeeming Membership Rewards points with the Amex Blue Business Plus card, we prefer this card over the Amex Blue Business cash card.
Capital One Spark 1% Classic
Since building credit for business is a goal for many new small businesses, we are including this card as an option to build credit for your small business. Although this card offers 1% in cash back, this no annual fee, and no foreign transaction fee cash back card can be good option particularly for new businesses.
In Conclusion: Crafting your cash back strategy
In the realm of 2% cash back credit cards, options abound for every profile and preference. By strategically pairing cards or opting for specialized offers, you can leverage the power of cash back rewards to enhance your financial journey. Explore our array of recommendations and seize the opportunities that best align with your goals and aspirations.
The cash back credit cards analysis, review or recommendations shown here are those of the author only and have not been reviewed, approved or endorsed by any third party. The APRs and any introductory bonus offers are valid as of January 31, 2022, and are subject to change at the discretion of the issuers.
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