When a rewards program or credit card is offering 1.5% cash back, it means that for every $1 you spend you will earn 1.5 cents ($0.015) in the form of cash back.
You can calculate 1.5% cash back multiplying 0.015 by the amount you plan on spending. So if you spend $1,000, 1.5% back would be $1,000 x 0.015 which is $15. You can use the cash back calculator below to calculate total cash back based on spend.
Use the 1.5% Cash Back Calculator to calculate 1.5% cash back based on the value entered.
| Redemption | Average Dollar Value |
|---|---|
| Total Cash Back: | $1.50 |
What's The Best 1.5% Cash Back Card?
There are many 1.5% cash back credit cards on the market and while the overall return might be the same, there are cards that offer additional benefits that makes them better than others. This includes things like:
- Travel Insurance
- Purchase Insurance
- Cell Phone Protection
- Ability To Convert Cash To Other Rewards
- Ways To Earn Bonus Cash Back
- Synergy with Other Cards in the Program
These are all important and should be considered when choosing any kind of credit card, especially if you plan on having more than one rewards card.
Should You Get A 1.5% Cash Back Card?
I recommend having at least one flat rate earning card. The best use of 1.5% cash back credit cards will usually come from pairing them with other credit cards that fall under the same rewards program or bank (a.k.a credit card synergy).
For example, take a look at the cash back earning rates for the Capital One SavorOne Cash Rewards Credit Card and Capital One Quicksilver Cash Rewards Credit Card listed below.
SavorOne Card
- 3% Dining
- 3% Entertainment
- 2% Grocery
- 1% Everything Else
Quicksilver Card
- 1.5% All Purchases
If you were to have both cards, you would use the SavorOne Card for dining, entertainment, and grocery purchases and use the Quicksilver Card for everything else.
This is because the SavorOne will only earn you 1% back on all purchases whereas the Quicksilver would earn you 1.5%. You may think that a 0.5% difference is not that big, but it adds up... real quick.
For example, $2,000 in miscellaneous purchases per month would be $24,000 per year. At 1% that is a total of $240 in cash back, but at 1.5% that is a total of $360 in cash back. I don't know about you, but the $360 sounds significantly better.
There are many credit cards that work well together. I recommend looking at some of the top cash back credit card combinations as they can earn you a solid return on your spend!
Are There Cards That Are Better Than 1.5% Cash Back?
There's a good handful of credit cards that earn more than 1.5% cash back, so why would you get a 1.5% cash back card when you know you can earn a higher rate with another card? The answer to that depends on many factors:
- How much do you plan on spending on the card?
- Do you like the bank?
- Do you plan on using the card internationally?
- Does the card have useful benefits that you'll use?
You have to take all of this into consideration when selecting a credit card. For example, I own the Citi® Double Cash Card which earns 2% cash back (1% on purchase and 1% when you pay off the purchase) and the Capital One Quicksilver Cash Rewards Credit Card which earns 1.5% cash back on all purchases. The reason I own both is based on my international travel.
The Citi Double Cash Card has a 3% foreign transaction fee which means that if I use the card outside of the States, I'll be charged a fee 3 cents on the dollar. Since the card earns 2% back (which is 2 cents on the dollar), I would be technically losing rewards which is not good.
On the other hand, the Quicksilver Card has a 0% foreign transaction fee which means I can use the card internationally and not have to worry about a fee.
So basically, I use the Citi Double Cash for purchases in the U.S. to get 2% back on my purchases and I take the Capital One Quicksilver with me when I travel internationally to earn an easy 1.5% back on purchases.
FAQ
What is 1.5% cash back?
1.5% cash back means you will earn 1.5 cents ($0.015) for every $1 spent.
Are 1.5% cash back credit cards good?
Yes. 1.5% cash back credit cards typically have no annual fee and offer a great return on your spend. They're best used when paired with other credit cards.
Aren't 2% cash back cards better?
Yes, 2% cash back (and higher) credit cards will earn you more cash back, but most tend to have an annual fee and will require you to focus all of your spend across the card to make it worth the fee. There are some cards that earn 2% and higher that have no fee which will do you better than a 1.5% cash back card.
How much cash back will I earn with a 1.5% cash back card?
It depends on how much spend you run through the card and whether or not the card has an annual fee. You can use the 1.5% Cash Back Credit Card Calculators on this page to calculate total cash back based on your spend.
What's the best 1.5% cash back card?
While there are 1.5% cash back credit cards that are better than others, there's no card that is merely "The Best". You'll want to take into account card benefits, other credit cards in the program, fees, and much more when looking for a great 1.5% cash back credit card.
Are there 1.5% points and miles cards?
There are lots of 1.5% cash back credit cards that are disguised as points and miles cards. For example, the Discover it Miles card earns 1.5 Discover Miles per $1 spent. The miles are worth 1 cents each so you're just looking at a 1.5% return.
How do I know what's the best credit card for my spend?
You can use the Credit Card Finder Tool to get a list of the best credit cards based on your spend across categories.
