The holy grail of cash back rewards cards are those that pay two percent on all purchases. We’re not talking about rotating categories, like the 5% cards. And we aren’t talking about rewards that are capped (5% rotating category cards cap the rewards you can earn). We are talking about true 2% cash back credit card offers.
I use just such a card virtually every day, but I knew that there were others. So I did some research, and my findings are below. One key thing to keep in mind is that with all cards that pay two percent cash back, points or miles, there is always a catch. As an example, the card I use (listed first below) pays 2%, but only if you use the rewards for travel.
With that said, here’s the list:
Card #1: The Capital One® Venture® Rewards Credit Card is my primary credit card. I also use the business card version, called the Capital One Spark card. With these cards you earn 2 points for every $1 spent. If you use the points for travel, they are worth $0.01 each, making the card a true two percent card. If, however, you use the points for anything other than travel, the points are worth half that. My family and I travel enough to use all of our points on travel.
The beauty of this card is how you use the points. We book travel through various services (Priceline, Kayak, directly with airlines) and pay with our Venture card. Once the charges hit our account, we just log into Capital One and redeem points to pay for the travel. Capital One lists those charges that qualify as travel, and paying for them with points is as easy as selecting a check box. We’ve paid for everything from airfare and hotels to car rentals and even subway fare.
Card #2: The Fidelity Rewards American Express Credit Card is actually three different cards, each of which pays 2% cash back. So what’s the catch? The rewards are deposited into your Fidelity account, which is required to get the card. The difference between each card is the type of account. You have a choice between a retirement account, a 529 account, and a taxable investment account. And you can actually split the rewards to be deposited in multiple accounts.
Card #3: This card actually pays 2.2% when you redeem for travel as you get a 10% bonus. Any guesses which card pays so much? Hint: It was named the credit card ‘Best for Travel Rewards’ by Money Magazine.
If you know of other cards that pay as much or more in rewards on all purchases, leave a comment below.