How good is it to use a credit card that offers 2% cash back for every purchase?

You have a lot of different ways you could pay for purchases. One option is to pay cash, but that leaves you unprotected from fraud and obviously you won’t get any rewards. Debit cards are another choice, but again the consumer protections are minimal and rewards are often non-existent.

That leaves credit cards. Credit cards can offer great features, like extended manufacturer warranties, return protections if a product doesn’t work as expected and the merchant won’t take it back, and fraud protections if a product isn’t delivered as promised.

Credit cards also can come with rewards too, including cash back, points, or miles.  In fact, there are awesome cash back cards offering 2% cash back on every purchase. So, is it a good idea to use this kind of cash back card or are there other better options out there?

Why a 2% cash back card can be a great choice

Using a 2% cash back card for every purchase has some really substantial benefits that make it a great payment option. Here’s why you should seriously consider using one for every purchase possible. 

• You earn generous rewards. A 2% cash back rate is pretty competitive considering that you earn it on everything. While some cards offer a little higher rewards rate like 3% or 5% back, most of those cards offer the extra rewards only on a specific kind of purchase and you get just 1% back on everything else. Many also require you to jump through hoops like activating the bonus rewards or limiting the amount of bonus rewards you can earn. As a result, many people end up with more rewards by just getting 2% back on everything rather than opting for these other cards with more complicated rules. 
• It’s easy to redeem rewards. Cash back cards typically allow you to redeem your rewards by depositing the money into a bank account or by getting a statement credit. You don’t have to go through a complicated process to figure out the best way to redeem nor do you have to struggle with understanding what your rewards are actually worth.  You also don’t have to wait to amass tons of points and miles just to be able to take advantage of your rewards. 
• Your rewards won’t encourage you to spend more. Rewards that offer miles or points towards merchandise often encourage you to spend more money in order to redeem them. For example, you might have to buy more miles to afford to fly, and, of course, the act of going on a trip is expensive in its own right. With a 2% cash back, on the other hand, you simply get a 2% discount on all of the purchases you are making with no complications. 
• You’ll actually use your rewards. Cash is something everyone can use, all the time. You don’t need to take a trip to make use of it, and you won’t end up with merchandise sitting on a shelf somewhere. You will have more money left in your bank account because the cash back makes your purchases cheaper.

Sign up for a 2% cash back card to actually enjoy your card’s reward program

You just need to find the right card, start charging things, and let the rewards stack up.  Research your options to find some awesome cash back rewards cards with generous card member perks and sign up today. You may even get a new card member bonus to help you earn extra money back from the start.