Why You Should Have a 2% Cash-Back Credit Card

I think that every credit card rewards strategy could benefit from a 2 percent cash back card. Note that I didn’t say every credit card strategy, because according to the American Bankers Association, about half of active credit card accounts carry debt from month to month. If that describes you, prioritize your interest rate rather than rewards. But if you are among the group that can pay in full and avoid interest, I think a 2 percent cash back card is a phenomenal choice, either as your primary card (if you want to keep it really simple) or as a foundation. And then you get other cards that lean into certain spending categories. Like if you spend a lot on groceries or gas or dining or travel, then you can get cards that give 3, 4, 5, even 6 percent cash back in certain categories but the floor is just 1 percent. So that’s where your 2 percent card comes in. Some people really love travel cards, and I think that’s totally fine if it fits your lifestyle. But I would note that those are more complicated, they often charge higher annual fees and not everybody travels that much. But everybody could use a little more cash.