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Best 2% Cashback Credit Cards

Best 2% Cashback Credit Cards

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated Mar 03, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

If you want a straightforward approach to earning credit card rewards and prefer earning cash back over miles and points, a flat-rate cash back credit card should be on your radar.

There are currently a handful of credit cards available that offer a flat rate of 2% cash back on every purchase. Along with $0 annual fees – at least during the first year of card membership – these cards offer a variety of benefits, including purchase protection and zero fraud liability.

Based on our research of cards available through CompareCards, as well as top cards offered by major issuers, here are the best 2% cash back credit cards based on the following categories:

Best 2% cashback business credit card: Capital One Spark Cash for Business

If you’re a small business owner who wants to earn a generous amount of cash back without keeping track of spending caps and bonus categories, the Capital One Spark Cash for Business is a great option. Along with a generous sign-up bonus, the card offers one of the highest flat cashback rates among business credit cards.

Rewards rate: Earn unlimited 2% cash back for your business on every purchase, everywhere.

Sign-up bonus: Earn a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening.

How to redeem your cashback rewards

Cash back can be redeemed at any time with no minimum. You can receive your cash back upon request in the form of a statement credit or a check. Or, you can set up one of the following automatic redemption preferences: at a set time each calendar year or when you reach a specified amount ($25, $50, $100, $200, $500 or $1,500).

Cash back can also be redeemed for credits to cover previous purchases.

To redeem your cashback rewards, log in to your account or contact the Capital One Rewards Center.

Additional Capital One Spark Cash for Business benefits:

  • Employee cards at no-cost
  • Global Entry or TSA Precheck credit
  • Complimentary business management tools
  • Zero fraud liability
  • Extended warranty and purchase protection
  • Car rental collision coverage

What to look out for

Unlike the other cashback cards in this post, the Capital One Spark Cash for Business comes with an annual fee of $0 intro for first year; $95 after that.

Best 2% cashback balance transfer credit card: Citi® Double Cash Card – 18 month BT offer

If you’re struggling under the weight of credit card debt, you should consider a card that lets you transfer your balance without incurring interest charges for a specific time period, like the Citi® Double Cash Card – 18 month BT offer. Along with offering cash back on every purchase, the Citi® Double Cash Card – 18 month BT offer comes with one of the longest introductory APRs on balance transfers currently available: 0% for 18 months on balance transfers, then a regular APR of 13.99% – 23.99% (variable) applies.

Rewards rate: Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. Note, you must pay at least the minimum amount due by the first day of your next billing cycle in order to earn cash back for purchases that are posted to your account during that billing cycle.

Sign-up bonus: No bonus.

How to redeem your cash back

You can redeem cash back for a check, statement credit or credit to a linked account once your cash rewards balance equals $25 or more. You can also convert cashback rewards to ThankYou® points when you have a minimum cash rewards balance of $1.

To redeem your rewards, visit citi.com or call (855) 473-4583.

Additional Citi® Double Cash Card – 18 month BT offer benefits:

  • $0 annual fee
  • Special access to ticket presales and exclusive events through Citi Entertainment
  • 24/7 fraud protection
  • Citi Identity Theft Solutions provides assistance if your identity is stolen
  • The Lost Wallet Service replaces your card, usually within 24 hours, if it’s lost or stolen
  • $0 liability for unauthorized charges
  • 24/7 access to customer service representatives

What to look out for

Although the Citi® Double Cash Card – 18 month BT offer comes with an intro APR on balance transfers for more than a year, you will incur a balance transfer fee of 3% of each balance transfer; $5 minimum. So, for example, if you transfer $5,000 to your Citi® Double Cash Card – 18 month BT offer, you will incur a balance transfer fee of $150, which will be added to your transferred balance.

Additionally, you must complete your balance transfer within the first four months of opening the card to take advantage of the introductory APR period.

But keep in mind that we recommend paying off your balance transfer in full within the promotional period before focusing on earning cashback rewards.

Best 2% cashback card for PayPal users: PayPal Cashback Mastercard®

If you frequently make purchases using your PayPal account, you should take a look at the PayPal Cashback Mastercard®. The card offers a flat rewards rate on every purchase and can be used anywhere Mastercard is accepted.

Rewards rate: 2% cash back on every purchase.

Sign-up bonus: None.

How to redeem your cashback rewards

Unlike cashback credit cards that allow you to redeem rewards for statement credits, checks and more, the PayPal Cashback Mastercard® only allows you to redeem cash back through your PayPal account. That said, you can use your PayPal account to shop online, send money and pay bills.

To redeem your rewards, log in to your PayPal account and click on “PayPal Mastercard.” You will be taken to Synchrony Bank’s site, where you can select “Rewards” from the “Rewards & Offers.” Next, enter the amount of cash back you want to redeem to your PayPal account and click “Redeem.”

Additional PayPal Cashback Mastercard® benefits:

  • $0 annual fee
  • Foreign transaction fees: None
  • Access special discounts from a variety of merchants
  • Identity theft protection
  • Microchip technology
  • 24/7 assistance through Mastercard Global service

What to look out for

You must have a PayPal account in order to apply for the PayPal Cashback Mastercard®. If you don’t currently have one, you can set one up.

Additionally, the card does not offer an introductory APR on purchases or balance transfers and charges a very high ongoing APR of 22.24%, 26.24% or 29.24% variable, so this isn’t a card you want to revolve a balance on.

Best 2% cashback credit card for investing: Fidelity® Rewards Visa Signature® Card

If you’d prefer to invest your cashback rewards instead of redeeming them for statement credits, checks or travel, you should take a look at the Fidelity® Rewards Visa Signature® Card. The Fidelity® Rewards Visa Signature® Card offers cash back on every purchase and allows you to deposit your rewards into an eligible Fidelity account, including retirement accounts and college funds. You can also deposit cash back into the eligible Fidelity accounts of family members and friends.

Rewards rate: Unlimited 2% cash back on everyday purchases.

Sign-up bonus: Receive 10,000 Bonus Points—which equals $100 cash back, when deposited into an eligible Fidelity account—after you make at least $1,000 in eligible purchases within the first 90 days of account opening.

How to redeem your cashback rewards

You can redeem your points for cash deposits, starting at 5,000 points, into the following Fidelity accounts: brokerage account, Fidelity Cash Management Account, Fidelity-managed 529 College Savings Plan, retirement account, Fidelity Go account, Fidelity Charitable Giving Account and Fidelity HSA.

Points can also be redeemed for travel, gift cards and statement credits, starting at 2,500 points.

To access the rewards center, log in to your account at Fidelity.com, and select “Manage Reward Points.” Or call 888-551-5144.

Additional Fidelity® Rewards Visa Signature® Card benefits:

  • $0 annual fee
  • $0 fraud liability
  • Auto rental collision damage waiver
  • Lost luggage reimbursement
  • Roadside dispatch
  • Special offers and discounts on shopping and travel purchases
  • 24/7 access to complimentary Visa Signature Concierge

What to look out for

It’s important to note that the 2% cashback value only applies to rewards redeemed for a deposit into an eligible Fidelity account. If you redeem your rewards for travel, gift cards or statement credits, the rewards value is only equivalent to 1% cash back.

Which 2% cashback credit card should you choose?

Ultimately, the right 2% cashback card for you comes down to how you plan to use the card. For example, if you want to transfer a balance from a different credit card and then use the card to earn a solid cashback rate on future purchases, the Citi® Double Cash Card – 18 month BT offer may be your best bet.

But if you want to earn 2% cash back for your business on every purchase, everywhere, and you don’t mind paying an annual fee after the first year, the Capital One Spark Cash for Business may be the best fit.

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