When a rewards program or credit card is offering 2% cash back, it means that for every $1 you spend you will earn 2 cents ($0.02) in the form of cash back. You can calculate 2% cash back multiplying 0.02 by the amount you plan on spending. So if you want to know how much cash back you'll earn spending $1,000, it would be $1,000 x 0.02 which equals $20. You can use the 2% Cash Back Calculators towards the bottom of this page to calculate how much you can earn based on your spend across different categories.
What's The Best 2% Cash Back Card?
There's no cash back credit card that is considered to be "The Best", but there are credit cards that are better than others. There's not as many 2% cash back credit cards as there are 1.5% cash back credit cards so your options are a little more limited. The most popular 2% credit cards are:
- Citi Double Cash Card
- PayPal CashBack Mastercard
- AMEX Blue Business Cash Card
- Capital One Spark Business Visa
- Capital One Venture Card - 2% Return w/ Annual Fee
- Capital One Spark Miles Card - 2% Return
There's also a handful of credit cards that earns more than 2% cash back. These credit cards typically have an annual fee which requires you to run a good amount of spend through the card. These cards can be better than 2% cash back cards if you plan on focusing the majority of your spend (or at least a lot of it) through a single card.
- Alliant CashBack Visa - 2.5% Cash Back Card w/ Annual Fee
- AOD Visa Signature Card - 3% Cash Back Card
Should I Get A 2% Cash Back Card
Yes, I believe that you should always have at least one credit card that earns a 1.5%-2% return on all purchases. Many credit cards that feature bonus categories typically earn a 1% return on non-category spend. This is where 1.5%-2%+ cards come in handy to pick up the slack and maximize your rewards.
Are 2% Cash Back Cards With Annual Fees Worth It?
In my opinion, they're not typically worth the hassle unless the card is offering additional perks and benefits that a non-annual fee card may not have. From a spending standpoint, 2% cash back cards with no annual fee such as the Paypal Cashback Mastercard and Citi Double Cash will always earn you a better return than 2% cash back cards with an annual fee. For cards that offer higher rewards for an annual fee such as the Alliant Cashback Visa Card which earns 2.5% cash back, it will depend on how much spend you're going to run through the card. You would have to run more than $20,000 a year through the Alliant Cashback Visa to make it better than the Citi Double Cash and PayPal Cashback Mastercard for instance. So it can be worth it at times, but you'll want to run the numbers to make sure.
You can use the rewards calculator to calculate how many points, miles, or cash back you can earn based on your spend per category. This calculator will also give you the dollar value of the card based on the value of the rewards earned and how much each benefit is worth to you, minus the annual fees. You can click the Compare A Card button to compare this card side by side any other card featured on the site within the same calculator.
Note! All category spend entered in the primary card's column (first column when comparing cards) will carry over to all credit card calculators on the site. This means you will not have to re-enter the same information again and again when browsing during the session.
What is 2% cash back?
2% cash back means you will earn 2 cents ($0.02) for every $1 spent.
Are 2% cash back credit cards good?
2% cash back credit cards are among the best rewards cards you can have.
Are there cards that earn higher than 2%?
How much cash back will I earn with a 2% 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 2% Cash Back Calculator on this page to calculate total cash back based on your spend.
What's the best 2% cash back card?
Are there 2% points and miles cards?
How do I know what's the best credit card for my spend?
You can use the Search For Credit Cards By Spend calculator to get a list of the best credit cards based on your spend across categories.