Carlina Teteris/Getty Images
With so many rewards cards strategies to consider — like bonus categories, travel points and miles valuations and more — some cardholders opt to go the simpler route. A flat-rate cash back card lets you earn a consistent, unlimited rewards rate for every purchase you make. Redemption options are simple, too, usually in the form of a statement credit, direct deposit or gift card.
Other cardholders pair a flat-rate cash back card with another bonus category rewards card. Their bonus category card might only offer 1 percent on non-bonus purchases, so they use a flat-rate card for those purchases instead to earn 1.5 or 2 percent. Here are a few of the best flat rates you’ll find.
Comparing the best cards for flat-rate cash back
| Card name | Best for | Annual fee | Recommended credit score | Flat rewards rate | Welcome bonus |
|---|---|---|---|---|---|
| Wells Fargo Active Cash® Card | Highest flat-rate with an intro APR | $0 |
|
|
|
| Citi Double Cash® Card | Highest flat rate if you pay on time | $0 |
|
|
|
| Capital One Quicksilver Cash Rewards Credit Card | Flexible rewards redemption | $0 |
|
|
|
| Bank of America® Unlimited Cash Rewards credit card* | Current Bank of America savers | $0 |
|
|
|
| Upgrade Cash Rewards Visa® | Financing over time | $0 |
|
|
|
| Chase Freedom Unlimited® | Flat-rate and bonus categories | $0 |
|
|
Top cards for flat-rate cash back
-
The Wells Fargo Active Cash® Card is one of the highest-earning flat-rate cash rewards cards on the market, letting you earn 2 percent on every purchase without having to track or activate categories. The card also comes with generous benefits for no annual fee, including cellphone protection, auto rental collision damage waiver, roadside assistance and Visa Signature perks.
It also comes with a 0 percent APR intro offer for 12 months, in case you need to make a big purchase or carry a balance. After that, a 19.24%, 24.24%, or 29.24% Variable APR applies.
-
Pros
- Tap into the highest flat-rate out there by using this card for every purchase or as a supplement for your non-bonus category purchases.
- You could apply for this card in time for a big purchase, like an appliance, wedding costs or a cosmetic procedure, to earn the welcome bonus and cash back while buying yourself time to pay it off interest-free.
Cons
- The travel options with Wells Fargo are more limited than with other issuers, so you won’t get as much bang for your buck by transferring points.
-
Comparable to the Wells Fargo Active Cash card, the Citi Double Cash® Card offers 2 percent cash back on every purchase. But you’ll get 1 percent when you make the purchase and the other 1 percent when you pay it off, making this card a good option if you consistently pay your balance on time.
With a lengthy 0 percent intro APR offer on balance transfers — 18 months — you could also use this card to consolidate any other credit card debt while earning rewards. Just keep in mind there’s a There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. Ideally, you’ll want to zero out your balance by the end of the intro period. After the intro period the APR becomes 18.24% – 28.24% (Variable).
-
Pros
- With the highest flat-rate on the market and a nice welcome bonus, this card is great for everyday spending or for pairing with a bonus category card.
- The card has a better rewards rate than some other cards that offer a balance transfer option.
Cons
- If you don’t pay off the balance, you won’t get half of the rewards cash back.
-
The Capital One Quicksilver Cash Rewards Credit Card offers a solid rewards rate, welcome bonus, balance transfer option and intro APR for cardholders who may want to stick with Capital One. You’ll earn 1.5 percent cash back with no strategizing required, and you can redeem that cash back as a check, statement credit, gift card or online purchase or convert it to miles if you have a Capital One travel card.
-
Pros
- Earn easy cash back and a $200 welcome bonus by spending $500 on your card in the first three months.
- If you have a travel card in the Capital One family, you can convert your cash back into miles that are redeemable with Capital One Travel or transfer partners.
Cons
- This card’s flat rate isn’t as high as the comparable cards above.
-
For everyday cardholders, Bank of America® Unlimited Cash Rewards credit card‘s 1.5 percent cash back rewards rate is on par with other flat-rate cards. But Bank of America Preferred Rewards members with at least $20,000 across their accounts can reap a boosted 1.87 to 2.62 percent cash back. The card also offers a 0 percent intro APR for the first 15 billing cycles (then a 18.24% – 28.24% Variable APR on purchases and balance transfers) and any balance transfers made within the first 60 days (don’t forget the balance transfer fee: 3% for 60 days from account opening, then 4%.
-
Pros
- You can earn a decent rewards rate and welcome bonus for no annual fee, and even more rewards if you currently bank and save with Bank of America.
- Transfer a balance or pay off a purchase interest-free for a relatively long intro period (then 18.24% – 28.24% Variable APR on purchases and balance transfers)
Cons
- The spending requirement for the welcome bonus is higher than average, and the savings minimum to reach Preferred Rewards status is also high.
-
If you need to make a large purchase and want to pay lower-interest installments over a longer period of time — all while earning a flat 1.5 percent cash back on purchases — the Upgrade Cash Rewards Visa® is an option. It offers up to a $25,000 credit limit and offers fixed repayments in a set timeframe like a personal loan. And you might be able to secure a lower interest rate of 14.99% – 29.99%.
-
Pros
- Earn a standard flat-rate reward rate on every purchase and welcome bonus for no annual fee.
- With excellent credit, you could secure a lower interest rate and plenty of time to pay off a large purchase, similar to a personal loan.
Cons
- The rewards redemption options are limited, and you won’t be able to transfer for travel points or miles.
-
While the Chase Freedom Unlimited® is technically a bonus category cash back card, it offers a competitive catch-all rate of 1.5 percent on non-bonus categories. Plus, you’ll earn 5 percent on Chase Travel and Lyft purchases and 3 percent on dining and drugstore purchases. For credit card minimalists, this card could be the only one you keep in your wallet, or you could pair it with a travel card.
-
Pros
- Earn as much cash back on everyday purchases as you would with some flat-rate cards, while also reaping extra rewards on bonus categories.
- You can redeem your rewards with Chase Travel purchases or a transfer partner, or as a statement credit, gift card or other cash back option.
Cons
- Earning and redeeming rewards with this card gets more complicated than with a standard flat-rate card.
How to choose a flat-rate cash back card
Before getting pre-approved or applying for a flat-rate cash back card, consider these factors to pick the right one.
- Rewards rate: If you’re simply trying to earn the highest possible flat rate, one of the 2 percent cards is the way to go — unless you happen to have $50,000 or more in Bank of America accounts, which can earn you at least 2.25 percent with the Unlimited Cash Rewards card. With the highest flat-rate cards, you don’t have to pay attention to spending categories, redemption options or other card perks. As long as you pay your balance on time, you’ll get easy cash back for every purchase.
- Welcome bonus spending requirement: While the cards above offer similar amounts of cash back as a welcome bonus ($200-$300), the spending requirements range from $500 to $1,500 in a set timeframe. You’ll want to make sure you can reach the requirement for the card you want so you don’t miss out on free money.
- Redemption options: Some cash back cards only offer redemption options like statement credits, direct deposit or gift cards. And notably, half of rewards cardholders (50 percent) prefer cash back rewards, according to Bankrate’s 2024 Credit Card Rewards Survey. But travel points or miles tend to be worth more. If you choose a cash back card from the same issuer as your travel card, you may be able to convert cash back to points or miles.
- Financing needs: A perk of several cards on this list is a 0 percent intro APR offer or the Upgrade Cash Rewards Visa’s low-interest installment option. If you need to finance a large purchase for 12 months or more without paying interest, look for a card with that type of offer.
Comparing rewards earned with a flat-rate card vs. bonus category card
Let’s crunch the numbers on the cash back you can earn with a flat-rate cash back card, like the Wells Fargo Active Cash card, compared to a cash back offering bonus rewards on certain categories, like the Blue Cash Everyday® Card from American Express.
Note that the Wells Fargo Active Cash card offers 2 percent cash rewards on all purchases, while the Amex Blue Cash Everyday card offers 3 percent cash back at U.S. supermarkets, U.S. gas stations and U.S. online retail purchases (on up to $6,000 per year in each category, then 1 percent back) and 1 percent cash back on all other eligible purchases.
Neither card charges an annual fee to subtract from your earnings.
| Spending category | Annual spending | Cash rewards earned with the Wells Fargo Active Cash Card | Cash back earned with the Blue Cash Everyday Card from American Express |
|---|---|---|---|
| Groceries | $6,000 | $120 | $180 |
| Dining | $2,500 | $50 | $25 |
| Gas stations | $2,000 | $40 | $60 |
| Transportation and rideshare | $800 | $16 | $8 |
| Travel | $2,000 | $40 | $20 |
| Entertainment | $1,500 | $30 | $15 |
| Online shopping | $2,400 | $48 | $72 |
| Household utilities | $4,000 | $80 | $40 |
| Drugstores | $1,200 | $24 | $12 |
| Total | $22,400 | $448 | $432 |
What’s next?
Frequently asked questions
The bottom line
For responsible credit cardholders, it makes sense to earn cash back rewards on everyday spending. If you’re too busy for a complicated rewards strategy, a flat-rate cash back card can be just right for your wallet. Or you can swipe it for those non-bonus categories that your other rewards cards earn less for. With no annual fee, you’ll have little to lose and much to gain with one of the cards above — as long as you pay your balance on time to avoid accruing interest.
*All information about the Bank of America® Unlimited Cash Rewards credit card has been collected independently by Bankrate and has not been reviewed or approved by the issuer.
Read the full article here
