The Best 2% Card Showdown

[Anonymous]

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@Anonymous wrote:

My fave is Amex Blue Business Cash - 2% on everything. Monthly statement credit. Amex offers. I use one of my 1.5% cards for back up (places that do not accept Amex, which are getting fewer).  I found that getting a new 1.5% with a sign-up bonus makes it a 1.5%+ card for a period of time. It is all math ;-)

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Another AMEX Blue Business person, I always will ask people opinion on the MR version vs the Cash version. If it weren't for having a business it would have been more popular IMO.

[Anonymous]

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@imaximous wrote:

Here's my personal opinion and experience with the 2% cards I got: Penfed, Paypal MC, Citi DC & Amex BBP. I have others that do better than 2% but require relationship, another card to bump up the value, etc.

Penfed: If you're not military, you need to keep money in a checking account to get the 2%. I think it's $500. For some, it's no big deal. For others, it can be annoying to have an extra checking account they don't want or having to park $500 for the extra 0.5%. It's almost like a fee. Credit limit policies have changed and I think it only goes to $25k now. That might be plenty for most people -- not for some. 

If you can live with that, it's a good card and decent service. 

Paypal MC: It's a SYNCB card. That's good and bad. I personally haven't had issues, but I've read plenty of bad stories. They can be very unpredictable -- particularly with reporting, AA or CLDs. But, the card just works and does what it does. No FTF and easy redemptions. Very basic site.

This is a personal feeling, but they don't inspire a lot of trust. I might never have an issue, but it's something I just can't shake, and that's very important to me. I need to feel like the bank is going to have my back if I ever need them for something important -- whether it be to fight fraud, theft, extended warranty, etc. Again, I could be completely wrong, but I don't have the same peace of mind as when I charge something on an Amex or other bank, for instance. That's the biggest reason I don't use it much.

Citi DC: This card was SDed for a long time until Citi made it a TYP card. That changed everything, but only because I also have other TYP cards that enhance its value. With Premier (PCed from Prestige), I get an extra 25% value by using their travel portal (till the upcoming change), and since I also have the Rewards+ card, I get 10% back on redeemed points. 

Many don't like TYPs, but I've been able to get great value from transferring to some partners, and they run bonus promotions on transfers too. 

As a cashback card strictly, it's no better than the others. But, if you're into redeeming for travel and transferable points, it's much better than the previous two by far. The only thing that bothers me is the FTF. So I can't use it when I travel abroad, but I have better options anyway.

Amex BBP: Saving it for last because it's a business card and not really cashback card. 2% limited to $50k per year then 1%. That can be a major downside -- particularly since it's meant for business use. Limit can grow fast and Amex allows us to charge well beyond its limit. 

MRs are much more valuable than cashback if you can make the transfers work, but if not, there's a newer cashback version of the same card. 

Unfortunately, this card also has a FTF.

Amex Offers can give you a ton of value if they work for you!

I think it comes down to your spending level, whether you want cashback or use points for travel, and also if you're invested in any points ecosystem.

I personally prefer the Citi DC because it has a dual purpose, no limit on earnings, plus the enhanced value from other TYP cards. I switch between points and cashback because there's only so much you can do with travel points -- more so nowadays. I don't have an unlimited number of vacation days either, so once I have too many points in all ecosystems, I switch my strategy to balance earnings and I'm not stuck with points I can't use. I still end up giving them away to family members. However, it's easier for me to earn all different kinds of rewards points because I spend a ton for business, and that gives me an advantage in this game.

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Surprised you would prefer the DC over the Penfed. I agree with your mindset of the PPMC, which actually pushes me away for DC. I like that its TY conversions, but boy how I wish the days of the benefits were still here. Also hey the pathfinder is still a thing wanting to see the updates with that. 

[Anonymous]

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@kerplunk wrote:

Here's another perspective for those of you who are focused on the 2% cash back part of the equation:

My biggest reward/benefit ever during a year with credit cards was not 2, 3, or 5 percent cash back. It was the extended warranty protection that my Chase Freedom Visa credit card had that literally resulted in a $1,900 check when my very expensive TV crapped the bed at 13 months of ownership.

While I may have only earned 1% (at the time) instead of 2% on my $20,000 spend for that year, the math definitely worked out in my favor. 

Citi Double Cash used to have an amazing 2 year extended warranty, but they nerfed all benefits, so to me, that card is not worth much. I am currently using Navy Federal Flagship Rewards for my 2% spend.

Besides the extended warranty benefit, there are many other protections and insurances that exist on cards that you should pay attention to. They may result in a nice return. Just something to keep in mind when selecting your uncategorized spend card.

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I still cry at night about DC losing its benefits. Also true that benefits should be very important as well when trying to find that unicorn of choice. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

My fave is Amex Blue Business Cash - 2% on everything. Monthly statement credit. Amex offers. I use one of my 1.5% cards for back up (places that do not accept Amex, which are getting fewer).  I found that getting a new 1.5% with a sign-up bonus makes it a 1.5%+ card for a period of time. It is all math ;-)

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Another AMEX Blue Business person, I always will ask people opinion on the MR version vs the Cash version. If it weren't for having a business it would have been more popular IMO.

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Easy card to get. 1 yr. 0% APR, hidden tradeline, $500 SUB, 2% cashback, I have no idea why more people have not jumped on this card!

[notmyrealname23]

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@longtimelurker wrote:

Not too surprising, but no love in this thread for the Fidelity card!   When it was the Fidelity Amex, it was really the only widely available 2% cashback card, and becoming a Visa made it somewhat more attractive.   But then the competition arrived, the $50 redemption threshold and the need for a Fidelity account (for max value) has made this an also-ran....

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I've had a Fidelity account from long before I had the credit card (the Fidelity Cash Management Account for the depository account on the Visa is considerably less onerous a requirement than keeping a balance or direct deposit into some random credit union to get THEIR 2% card). That makes this card a no-brainer forever card for me. The only thing I would really want as an improvement is eliminating the 1% FTF. If it had that I could pretty much eventually use this card as my "backstop" card in conjunction with AMEX and Discover- right now Capital One has to be in my wallet for those times I spend weeks outside the US, or buy things not denominated in USD from merchants that won't take AMEX/Discover.

[longtimelurker]

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@notmyrealname23 wrote:

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@longtimelurker wrote:

Not too surprising, but no love in this thread for the Fidelity card!   When it was the Fidelity Amex, it was really the only widely available 2% cashback card, and becoming a Visa made it somewhat more attractive.   But then the competition arrived, the $50 redemption threshold and the need for a Fidelity account (for max value) has made this an also-ran....

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I've had a Fidelity account from long before I had the credit card (the Fidelity Cash Management Account for the depository account on the Visa is considerably less onerous a requirement than keeping a balance or direct deposit into some random credit union to get THEIR 2% card). That makes this card a no-brainer forever card for me. The only thing I would really want as an improvement is eliminating the 1% FTF. If it had that I could pretty much eventually use this card as my "backstop" card in conjunction with AMEX and Discover- right now Capital One has to be in my wallet for those times I spend weeks outside the US, or buy things not denominated in USD from merchants that won't take AMEX/Discover.

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I agree, the Cash Management account is a pretty good account, with no fees and ATM reimbursement.   It looks like you can open one without having to open a brokerage account (as was the case at one time).   I have the Fidelity card, but don't use it, as see no need for a $50 min or the small FTF.   The one time I did dispute recently was on this card, and it was eventually denined (To be fair, probably correctly).   My DC was just closed for non-use, expect this to go soon as well!

(And, BTW, that's why the $50 min redemption is a pain.   I could put small transactions to keep it alive, but need to spend $2500 before I could redeem)

[imaximous]

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@Anonymous wrote:

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@imaximous wrote:

Here's my personal opinion and experience with the 2% cards I got: Penfed, Paypal MC, Citi DC & Amex BBP. I have others that do better than 2% but require relationship, another card to bump up the value, etc.

Penfed: If you're not military, you need to keep money in a checking account to get the 2%. I think it's $500. For some, it's no big deal. For others, it can be annoying to have an extra checking account they don't want or having to park $500 for the extra 0.5%. It's almost like a fee. Credit limit policies have changed and I think it only goes to $25k now. That might be plenty for most people -- not for some. 

If you can live with that, it's a good card and decent service. 

Paypal MC: It's a SYNCB card. That's good and bad. I personally haven't had issues, but I've read plenty of bad stories. They can be very unpredictable -- particularly with reporting, AA or CLDs. But, the card just works and does what it does. No FTF and easy redemptions. Very basic site.

This is a personal feeling, but they don't inspire a lot of trust. I might never have an issue, but it's something I just can't shake, and that's very important to me. I need to feel like the bank is going to have my back if I ever need them for something important -- whether it be to fight fraud, theft, extended warranty, etc. Again, I could be completely wrong, but I don't have the same peace of mind as when I charge something on an Amex or other bank, for instance. That's the biggest reason I don't use it much.

Citi DC: This card was SDed for a long time until Citi made it a TYP card. That changed everything, but only because I also have other TYP cards that enhance its value. With Premier (PCed from Prestige), I get an extra 25% value by using their travel portal (till the upcoming change), and since I also have the Rewards+ card, I get 10% back on redeemed points. 

Many don't like TYPs, but I've been able to get great value from transferring to some partners, and they run bonus promotions on transfers too. 

As a cashback card strictly, it's no better than the others. But, if you're into redeeming for travel and transferable points, it's much better than the previous two by far. The only thing that bothers me is the FTF. So I can't use it when I travel abroad, but I have better options anyway.

Amex BBP: Saving it for last because it's a business card and not really cashback card. 2% limited to $50k per year then 1%. That can be a major downside -- particularly since it's meant for business use. Limit can grow fast and Amex allows us to charge well beyond its limit. 

MRs are much more valuable than cashback if you can make the transfers work, but if not, there's a newer cashback version of the same card. 

Unfortunately, this card also has a FTF.

Amex Offers can give you a ton of value if they work for you!

I think it comes down to your spending level, whether you want cashback or use points for travel, and also if you're invested in any points ecosystem.

I personally prefer the Citi DC because it has a dual purpose, no limit on earnings, plus the enhanced value from other TYP cards. I switch between points and cashback because there's only so much you can do with travel points -- more so nowadays. I don't have an unlimited number of vacation days either, so once I have too many points in all ecosystems, I switch my strategy to balance earnings and I'm not stuck with points I can't use. I still end up giving them away to family members. However, it's easier for me to earn all different kinds of rewards points because I spend a ton for business, and that gives me an advantage in this game.

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Surprised you would prefer the DC over the Penfed. I agree with your mindset of the PPMC, which actually pushes me away for DC. I like that its TY conversions, but boy how I wish the days of the benefits were still here. Also hey the pathfinder is still a thing wanting to see the updates with that. 

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Like I said, I like the dual purpose. I can use it for simple cashback or convert to TYPs as needed. Can't do that with Penfed.

I also value TYPs much higher because I've been able to get great flight redemptions and additional bonuses on the transfers when Citi runs promos. Plus, having additional TYP cards enhance the value even further.

It's not for everyone, though.  

[notmyrealname23]

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@longtimelurker wrote:

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@notmyrealname23 wrote:

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@longtimelurker wrote:

Not too surprising, but no love in this thread for the Fidelity card!   When it was the Fidelity Amex, it was really the only widely available 2% cashback card, and becoming a Visa made it somewhat more attractive.   But then the competition arrived, the $50 redemption threshold and the need for a Fidelity account (for max value) has made this an also-ran....

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I've had a Fidelity account from long before I had the credit card (the Fidelity Cash Management Account for the depository account on the Visa is considerably less onerous a requirement than keeping a balance or direct deposit into some random credit union to get THEIR 2% card). That makes this card a no-brainer forever card for me. The only thing I would really want as an improvement is eliminating the 1% FTF. If it had that I could pretty much eventually use this card as my "backstop" card in conjunction with AMEX and Discover- right now Capital One has to be in my wallet for those times I spend weeks outside the US, or buy things not denominated in USD from merchants that won't take AMEX/Discover.

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I agree, the Cash Management account is a pretty good account, with no fees and ATM reimbursement.   It looks like you can open one without having to open a brokerage account (as was the case at one time).   I have the Fidelity card, but don't use it, as see no need for a $50 min or the small FTF.   The one time I did dispute recently was on this card, and it was eventually denined (To be fair, probably correctly).   My DC was just closed for non-use, expect this to go soon as well!

(And, BTW, that's why the $50 min redemption is a pain.   I could put small transactions to keep it alive, but need to spend $2500 before I could redeem)

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I am perfectly fine with sending regular-ish bill action to that card that is unbonused spend that I don't need to shotgun blast at a SUB, given that I don't have cards that would be sweet for utilities like a US Bank Cash+.  My new iPhone SE went there (via a Citizens Bank "loan" that will get paid via the card, plus S&H/taxes- 0% loan) because Apple wouldn't approve me for the Apple Card last year, and I didn't want to apply this year and nerf my 5/24 for 6 months.

I can wait for the $2500 to build up (and last year before I went into the SUB game that card got things like my kid's college tuition... which they don't charge a fee for paying on a credit card... and the 529 account's at Fidelity, so paying the bill's pretty easy).

You make a good point about keeping cards alive and large redemption amounts being annoying though. My 1.5% CB cards that are all "you can cash out for a penny statement credit if you like" are all getting small monthly recurring bills just for that reason (I can cash out for small amounts while keeping the account open). I figure losing the .5% on a $10-30 monthly bill is a cost of business for keeping the CL open...

[Aim_High]

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@Anonymous wrote:

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@pinkandgrey wrote:

Aside from slightly-lesser-known CU cards, I think the Citi DC and the PPMC are going to be the main players here. I personally have the DC and have been extremely happy with it! 

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Thats what I originally thought it would be the DC and PPMC just battling it out. No, appears we got fan of CU here.

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As some have stated, all the 2% or better cards have their own quirks, advantages, and disadvantages.  They also may be appropriate for different profiles and credit histories.   As a veteran, I really like my PenFed Power Cash Rewards and a banking relationship with PenFed but I know it's not for everybody.  I understand the appeal of the DC and conversion to TYP's if that's your priority with CITI.  The PPMC seems to be easier to be approved for than some of the other 2% options, so it may be a best fit for some people.

The most important thing is to do your research and know how the card works.  Read the fine print and do comparisons.  Don't be surprised later by minimum redemption values, fees, interest rates, expiration of rewards, or redemption options.

I think the DC and PPMC are most popular for a few reasons.  Both are well advertised.  Both are from larger national banks than some of the other options.  The underwriting on DC and PPMC is fairly lenient compared to many credit unions.  Both are available nation-wide without geofences or requirements to maintain banking accounts or memberships, other than having created a PayPal account. 

IMO, the credit union cards like PenFed, SDFCU, PSECU, RBFCU, SDFCU or cards from banks like FNBO offer more favorable terms once you get into the fine print but they may be harder to pass underwriting.  They often require not only having an account but having Direct Deposit or a minimum balance to get the full 2% back.  As mentioned, there is an "opportunity cost" to maintaining a banking account if it's not your primary account anyway.  You may lose the ability to have that money invested in a higher-earning account elsewhere.  Others, like the Alliant FCU or Navy FCU FS cards charge an AF which means your returns are lowered, depending on your spending.  Still others like the Bank of America Premium Rewards card offer a great return but require deposits of at least $20K if not $100K to get the better rates.  These other stipulations add hurdles that some aren't willing or able to pass.  

There's been some great input on this thread but remember that old threads on My Fico have covered similar topics and can be a wealth of knowledge. Just go to the forum search bar and look for feedback and discussion about 2% cards, specific cards and features, or specific lenders. 

[Anonymous]

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@Aim_High wrote:

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@Anonymous wrote:

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@pinkandgrey wrote:

Aside from slightly-lesser-known CU cards, I think the Citi DC and the PPMC are going to be the main players here. I personally have the DC and have been extremely happy with it! 

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Thats what I originally thought it would be the DC and PPMC just battling it out. No, appears we got fan of CU here.

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As some have stated, all the 2% or better cards have their own quirks, advantages, and disadvantages.  They also may be appropriate for different profiles and credit histories.   As a veteran, I really like my PenFed Power Cash Rewards and a banking relationship with PenFed but I know it's not for everybody.  I understand the appeal of the DC and conversion to TYP's if that's your priority with CITI.  The PPMC seems to be easier to be approved for than some of the other 2% options, so it may be a best fit for some people.

The most important thing is to do your research and know how the card works.  Read the fine print and do comparisons.  Don't be surprised later by minimum redemption values, fees, interest rates, expiration of rewards, or redemption options.

I think the DC and PPMC are most popular for a few reasons.  Both are well advertised.  Both are from larger national banks than some of the other options.  The underwriting on DC and PPMC is fairly lenient compared to many credit unions.  Both are available nation-wide without geofences or requirements to maintain banking accounts or memberships, other than having created a PayPal account. 

IMO, the credit union cards like PenFed, SDFCU, PSECU, RBFCU, SDFCU or cards from banks like FNBO offer more favorable terms once you get into the fine print but they may be harder to pass underwriting.  They often require not only having an account but having Direct Deposit or a minimum balance to get the full 2% back.  As mentioned, there is an "opportunity cost" to maintaining a banking account if it's not your primary account anyway.  You may lose the ability to have that money invested in a higher-earning account elsewhere.  Others, like the Alliant FCU or Navy FCU FS cards charge an AF which means your returns are lowered, depending on your spending.  Still others like the Bank of America Premium Rewards card offer a great return but require deposits of at least $20K if not $100K to get the better rates.  These other stipulations add hurdles that some aren't willing or able to pass.  

There's been some great input on this thread but remember that old threads on My Fico have covered similar topics and can be a wealth of knowledge. Just go to the forum search bar and look for feedback and discussion about 2% cards, specific cards and features, or specific lenders. 

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Should link your old thread so people can get more information on other options. That way it gets brought back up again (if another 2% comes into play), we can help people decide on what fits right for there needs. 

When applying for CU I believe you have to think more about the banking relationship. Sadly, I applied thinking about just getting the card and calling it a day. Experience with the AOD, changed that aspect.