A 2% cashback card is definitely worth it if you pay off the balance in full each month. Otherwise, the 2% you earn in rewards will be canceled out many times over by the interest charged on the amount you owe. There are other benefits and drawbacks of 2% cashback cards: Pros of a 2% cashback card: Makes it easy to earn extra money on the things you’re going to buy anyway. Requires little-to-no rewards management — no rotating bonus categories to track or opt into each month or quarter. Available without paying an annual fee. For example, the Wells Fargo Active Cash card highlighted above offers unlimited 2% cash back, a sign-up bonus and an intro 0% APR deal, all for no annual fee. Makes a good supplemental rewards card. Use your bonus category card to earn higher rewards rates on specific purchases (like gas, groceries, travel) and whip out the 2% cashback card for everything else. May offer a sign-up bonus or balance-transfer deal which can pad your wallet even more. Cons of a 2% cashback card: Higher APR than non-rewards credit cards on debt carried over from month to month. General rule-of-thumb: The sweeter a card’s rewards, the worse the terms on debt. Can be less rewarding overall than a tiered-rate (or bonus-category) card that pays a higher cashback rate on certain purchases, especially if the bulk of your spending falls into those buckets. May charge an annual fee. There are plenty of no-annual-fee 1.5% cashback cards, the pickings are slimmer when it comes to issuers offering 2% cashback. Stricter approval standards mean that those with a FICO credit score that’s less than 670 or a VantageScore of less than 661 may not qualify for a 2% flat-rate cashback card. (Here’s more on credit score ranges.)