Mr Credit Card
Flat Rate credit cards allows you to earn a constant reward rate for all purchases. You can either earn rewards as cash back, reward points or even in cryptocurrencies. In the past, most generic cash back or rewards credit cards offer 1% flat rate rewards. Gradually, more credit cards offered 1.5% flat rate credit cards. More recently, there has been an increase in the number of flat rate credit cards offering 2% cash back for all purchases. This has essentially set the benchmark for flat rate credit cards because if you do not even offer 2% cash back or rewards, then it is probably not worth considering. Below is list of 2% flat rate cash back credit cards which are worth considering.
KEY FEAUTURES
The Citi Double Cash is the standard bearer in the flat rate cash back credit card space offering cardholders 1% cash back on all purchases and 1% cash back when they pay their bills, making it a total of 2% cash back. Though there are a couple of other cards which allow you to earn more than 2% cash back, the Citi Double Cash remains the benchmark because you do not need to open a Citi checking account. Citi allows you to redeem your cash back into your own checking account even if it is not a Citi bank account. This feature alone distinquishes it from other cards in this category.
If you do not wish to redeem your rewards for cash back, you can redeem your rewards as ThankYou Points. Cardholders who also own a Citi ThankYou Premier card can merge their ThankYou accounts. By having a Citi Premier Card, your ThankYou points becomes more valuable because you can transfer them to airline partners. Having a Citi Double Cash card that can contrinute to earning transferable points to airline partners is another reason why this is such a popular card.
SHORTCOMINGS
Like most cash back credit cards, the Citi Double Cash charges foreign transaction fees so this is not the best card to use when you travel abroad.
KEY TERMS
Annual Fee - $0
Regular APR - 13.99% - 23.99%
Flat Rate Cash Back - 2%.
Foreign Transaction Fee - 3%
Redemption Methods - To any checking account.
Read our review of the Citi Double Cash
KEY FEAUTURES
The BlockFi is another popular card which we also recommend for those who want a flat rate credit card that earns cryptocurrency as rewards rather than cash back. BlockFi is a crypto exchange. With their credit card, you can earn 1.5% back in crypto rewards for up to $50,000 in annual spending. When your annual spending exceeds $50,000, you can earn 2% back. This card has no annual fee and is one of the rare flat rate cards with no foreign transaction fee as well. Since BlockFi is a crypto exchange, you can easily transfer the cryptos you earned into an external wallet if you want. Though this card only allows you to earn 1.5% rewards, we have included this here because it is the only flat rate cryptocurrency credit card available to consumers today.
SHORTCOMINGS
If only we had a flat rate cryptocurrency credit card in say 2013, you would have been so much better off earning crypto rewards than cash back or miles. Having said that, crypto currencies can be volatile relative to fiat currencies like the USD. However, if you are a long term crypto investor, then this should not be an issue for you. This card also does not allow any balance transfers or cash advance.
KEY TERMS
Annual Fee - $0
Regular APR - 14.99% - 24.99%
Flat Rate Cash Back - 1.5% rewards in cryptocurrencies for first $50,000 in annual spending. Earn 2% in cryptocurrencies when annual spending exceeds $50,000.
Redemption Option - Crypto rewards are deposited into your BlockFi wallet.
Foreign Transaction Fee - 0%
Read our review of the BlockFi Rewards Visa
KEY FEAUTURES
The SoFi credit card requires you to have a relationship with SoFi either through a loan or a savings and investment account. If you do, you can apply for a SoFi credit card which allows you to earn 2% cash back on all purchases. You can redeem the cash back into your savings or investments account and even to help pay off your SoFi Loan. SoFi also has a crytocurrency investment account where you can redeem your cash back to and purchase cryptocurrencies. In addition, they do not charge any foreign transaction fee and even have cell phone loss and damage protection for card members.
SHORTCOMINGS
You do need to have an account or loan with SoFi to get this card.
KEY TERMS
Annual Fee - $0
Regular APR - 12.99% - 24.99%
Flat Rate Cash Back - 2%.
Redemption Options - Cryptos credited to SoFi Crypto Accounts, Fractional Shares credited to SoFi Invest Account, Cash Deposited into SoFi Money Account, Cash back applied to SoFi personal loans or student loan refinance.
Foreign Transaction Fee - 0%
Read our review of the SoFi Credit Card
KEY FEAUTURES
The AOD (Annistan Ordinance Depot) FCU Visa Signature is a Federal Credit Union credit card that has the highest flat rate rewards at 3%. You can earn unlimited 3% cash back for all purchases. Your cash back will be automatically redeemed as a statement credit each month. This is card is also one of the rare flat rate cash back credit cards that does not charge any foreign transaction fee. AOD Visa Signaure also has no balance transfer fee though there is no 0% APR teaser deal. The APR is between 7.49% to 19.47% which means you could potentially get a very low APR.
SHORTCOMINGS
One of the shortcomings of this card is that you can only redeem it as a statement credit. This will disappoint those who prefer to redeem cash back as a deposit to their checking accounts. You also have to join the AOC credit union (based in Alabama - please read our review on how to join).
Annual Fee - $0
Regular APR - 7.49% - 19.49%
Flat Rate Cash Back - 3%.
Redemption Option - Statement credit.
Foreign Transaction Fee - 0%
Read our review of the AOD Visa Signature
KEY FEATURES
The Bank of America Unlimited Cash Rewards allows you to anywhere from 1.5%, 1.825%, 2.25% or 2.635% cash back for every purchase you make. The level cash back you earn depends on how much you have with your Bank of America checking account. You can redeem cash back as deposits into your BOA checking or savings account, statement credits, Merrill Lynch Cash Management Account (CMA) or a Merrill Lynch 529 account. You would need to have a Bank of America account and/or Merrill Lynch account to get this card.
SHORT COMINGS
You would need to have a checking account with Bank of America to get this card. In fact, you would need to have at least $100,000 in the checking account in order to qualify for a Platinum Honors Preferred Rewards status, which will allow you to earn 2.625% cash back on all purchases on this card. Unlike other brokerage credit cards like Fidelity, you cannot redeem cash back as a deposit to your Merill Lynch IRA or 401k accounts.
KEY TERMS
Annual Fee - $0
Regular APR - 22.9%
Less Than $20,000 in checking account - Earn 1.5% cash back on all purchases
$20,000 - $50,000 in checking account - Gold Preferred Rewards Member - Earn 1.825% cash back
$50,001 - $100,000 in checking account - Platinum Preferred Rewards Member - Earn 2.25% cash back
More than $100,000 in checking account - Platinum Honors Preferred Rewards Member - Earn 2.625% cash back
Redemption Options - Deposit into checking account, Merill Lynch CMA account or Merrill 529 account and statement credit.
Foreign Transaction Fee - 3%
Read our review of the Bank of America Unlimited Cash Rewards
KEY FEATURES
The Alliant Cash Back Visa allows you to earn 2.5% cash back on all purchases for up to $10,000 in monthly spending. The cash back can be redeemed as a cash deposit into your Alliant checking account or through a statement credit. The Alliant Cash Back Visa is one of the rare cash back credit cards that does not charge any foreign transaction fee.
SHORT COMINGS
To get this card, you have to join the Alliant Credit Union and open a checking account. You then have to qualify for a "high rate" version making a electronic transfer into your checking account every month. Furthermore, you need an average daily balance of $1,000 in your checking account. If you meet these requirements, you will be able to earn 2.5% cash back. If not, you will only earn 1.5% cash back.
KEY TERMS
Annual Fee - $0
Regular APR - 12.24% - 22.24%
Cash Back - 2.5% if you have a "high rate" checking account and maintain an average daily balance of $1,000 in your checking account.
Redemption Options - Deposit into Alliant checking account or statement credit.
Foreign Transaction Fee - 0%
Read our review of the Alliant Cash Back Visa
KEY FEATURES
The Fidelity Rewards Visa Signature was the first credit card to have a 2% flat rate credit card back in 2004. You need to set up or already have a Fidelity account to get this card. But if you do, the 2% cash back that you earn can be deposited into up to 5 eligible Fidelity accounts automatically.
SHORTCOMINGS
You do need a Fidelity account to get this card.
KEY TERMS
Annual Fee - $0
Regular APR - 13.99%
Cash Back - 2% cash back
Redemption Options - Redeem cash back into eligible Fidelity accounts which include Brokerage account, Fidelity® Cash Management Account, Fidelity®-managed 529 College, Savings plan, Retirement account, Fidelity Go® account, Fidelity Charitable® Giving Account®, Fidelity HSA®.
Foreign Transaction Fee - 1%
Read our review of the Fidelity Cash Rewards Visa Signature.
KEY FEATURES
The PayPal 2% Mastercard allows PayPal account holders to earn 2% cash back on all purchases. The cash back you earn can be deposited into the your PayPal Balance Account if you have one. If not, the cash back can be redeemed and deposited into your linked bank account or debit card in your PayPal account. This card is one of two 2% flat rate credit cards we know of that allows you to redeem your cash back into your own bank checking account outside of the issuer (the other being Citi Double Cash).
SHORT COMINGS
You do need a PayPal account to get this credit card.
KEY TERMS
Annual Fee - $0
Regular APR - 16.74%, 20.74% or 23.74%
Cash Back - 2%
Redemption Options - Redeem to Paypal Balance Account or to your checking accounts linked to Paypal.
Foreign Transaction Fee - 3%
Read our review of the PayPal 2% Mastercard.
KEY FEATURES
The Wells Fargo Active Cash is a 2% flat rate credit card that will appeal to those with either a Wells Fargo checking account or a Wells Fargo Mortgage. You can redeem your cash back with a deposit into your Wells Fargo checking account, a statement credit or a principal credit to your Wells Fargo Mortgage. Wells Fargo also allow you to redeem your cash back via ATM withdrawal with your debit card. In fact, they are the only issuer that allows you to redeem cash back this way. Aside from these various redemption options, this card also offer cell phone protection insurance if you charge your monthly cellular bills to the card.
SHORTCOMINGS
Like most of the cards listed here, you need to either having a Wells Fargo checking account or mortgage to benefit from this card.
KEY TERMS
Annual Fee - $0
Regular APR - 14.99% - 24.99%
Cash Back - 2%
Redemption Option - Deposit into Wells Fargo checking account, via Wells Fargo ATM, principal payments to Wells Fargo Mortgage, Statement credits, gifts, Pay with Rewards (PWR)
Foreign Transaction Fee - 3%
Read our review of the Wells Fargo Active Cash.
KEY FEATURES
The TD Double is a 2% flat rate cash back credit card that is only available to those with a TD checking account. You will earn 1% cash back on all purchases and an additional 1% when you redeem the cash back as a deposit into your TD checking account, making it a total of 2% cash back (1% when you make a purchase and another 1% when you redeem into your TD checking account). You can also redeem your cash back for statement credits, gift cards, merchandise and travel. However, these do not earn you the additional 1% cash back. In fact, TD DoubleUp also allows you to redeem into any other US based checking account but once again, redeeming your cash back this way will only earn you 1% cash back and not 2%.
SHORTCOMINGS The key shortcoming of this card is that like most other flat rate cards, you have to redeem your cash back to the issuers checking account (in this case TD Bank) to earn 2% cash back. TD Bank is also not a particularly big or well known credit card issuer in the US so many potential customers might be wary because of this.
KEY TERMS
Annual Fee - $0
Regular APR - 14.99% - 24.99%
Cash Back - 1% cash back, additional 1% when you redeem into TD checking account (total of 2%)
Redemption Options - Get 2% cash back when you redeem as deposit into TD account. If you redeem as statement credit or into your own checking account outside of TD, you only get 1% cash back.
Foreign Transaction Fee - 3%
Read our review of the TD Bank DoubleUp.