The answer depends on how actively you want to manage to maximize your rewards and the types of purchases you most frequently make. Compared to tiered-rate or rotating-rate rewards credit cards, a flat-rate cash-back card is a better choice if you don’t want to bother with keeping track of which card in your wallet offers the best rewards rate depending on what you’re buying or where you’re shopping. Three Types of Rewards Credit Cards Flat-rate rewards cards pay a single, set percentage rate on all purchases. Tiered-rate (bonus category) credit cards pay a higher rewards rate on purchases that fall under specific spending categories (e.g., dining, groceries, gas, travel, etc.). All other purchases earn a base rewards rate, usually 1% - 1.5%. Rotating rewards credit cards pay a higher rewards rate on certain spending categories, some or all of which may rotate monthly or quarterly. The pros of flat-rate cashback cards: No shuffling cards at the cash register to figure out which card offers the biggest payout. You know exactly how much money you’ll get back with every swipe, regardless of what you’re purchasing. It’s basically a cashback card in “easy mode.” No active rewards management required, like picking a bonus category, opting into an issuer’s monthly or quarterly rotating roster of bonus categories (looking at you, Chase Freedom Flex), or keeping up with ever-changing rewards structures. No pesky spending caps that limit how much cashback you can earn. All but one of the top flat-rate cards we recommend above provide unlimited cashback potential. Even then, the outlier — the Alliant Cashback Visa Signature Card — has a pretty heady $10,000 monthly rewards spending cap. All purchases are eligible for cashback. Tiered-rate cards pay a lower rewards “base rate” — 1% to 1.5% — on purchases that don’t fall neatly under their bonus spending categories. (Bill payments, campground fees and exorcisms are a few purchases that come to mind.) Flat-rate cards pay the same rate on everything you charge. The drawbacks of flat-rate rewards cards: Lower rewards earning potential. Most flat-rate credit cards offer a 1.5% to 2% cashback rewards rate. And that’s it, unless you’re willing to jump through a few hoops (such as maintain a bank account with the issuer) to qualify for a higher rate. (We describe those hoops above.) No bonus rewards categories. Unlike tiered-rate cards that offer 2%-5% cashback rates on dining, gas, travel, groceries and entertainment purchases, a flat-rate card applies one cashback rate to everything. Depending on your spending habits, you could be leaving potential cash back on the table. Higher rates require better credit. If you have less-than-stellar credit, you’re unlikely to qualify for a 2% flat-rate cashback card. There are, however, issuers that offer no-annual-fee rewards cards for credit builders, such as the Petal 2 Visa (1%-1.5% cashback on all purchases, depending on your payment history) and the Credit One Platinum Rewards Visa (2% cashback on groceries, gas, and cell/’net/cable bills and 0% on everything else). The bottom line: The answer to the flat-rate vs. bonus-category card question comes down to money (how much you could earn) and your personality (how actively you want to manage your cards). Use the credit card rewards calculator to see which cashback cards are most profitable based on your spending habits, then decide how much work you’re willing to expend maximizing your rewards. tips_and_updates investor.com tip: Get the best of both worlds Pairing a flat-rate credit card with a tiered-rate card can amp up your rewards. And it might not be as big of a hassle to juggle cards as you think. Here’s how it works: Use the flat-rate card for all purchases except in the specific spending categories where the tiered-rate card pays a higher cashback rate. (Typical bonus categories are groceries, dining, gas, entertainment and travel.) Affix a “Use Me for [spending categories]” Post-it note on the tiered-rate card as a reminder to use that card for certain purchases.