Key takeaways
- A 1.5 percent cash back card can help you earn rewards on every purchase while enjoying benefits like extended warranties, travel insurance and no foreign transaction fees.
- But not all 1.5 percent cash back cards are created equally, varying by annual fee, welcome bonus, additional cash back categories and redemption opportunities.
- Carefully weigh each card against your spending habits, credit rating and financial goals when comparing these flat-rate cards.
Cash back credit cards earn rewards in several different ways, with some offering a generous flat cash back rate on all purchases and others offering more cash back in specific or rotating categories.
Cards that earn a flat rate of 1.5 percent cash back on all general purchases can fall into either category, meaning that they can give the cardholder a boosted flat rate of rewards plus rotating category rewards or simply the flat rate of 1.5 percent on its own.
These types of flat-rate rewards cards can come with intro APR offers and welcome bonuses, both of which can make their offers even more valuable. And many 1.5 percent cash back credit cards also come with no annual fee. If you’re interested in one of these cards, check out our guide for how to choose the right 1.5 percent cash back card for you.
How to choose the right 1.5 percent cash back card for your wallet
Before you start looking at credit card applications, follow these steps to narrow down your options:
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The best rewards credit cards require good to excellent credit, yet you can find 1.5 percent cash back cards for consumers with fair credit, poor credit or no credit as well. Ultimately, it’s helpful to know your credit score before you apply so that you put your energy toward those with a higher chance of approval.
You can check your credit score for free by using Experian’s free credit monitoring service, which provides your FICO 8 credit score in exchange for sending you personalized offers and ads, or by using a free service through another bank or credit card issuer. Capital One, Discover and American Express all offer ways to check your credit score for free, even if you’re not a cardholder. -
The strongest cash back credit cards are designed for people with good to excellent credit, offering 0 percent intro APR offers for purchases and balance transfers as a perk. These offers can typically last 12 months or longer. Not only can these intro APRs help you save interest as you pay down large purchases, but they can also help you consolidate existing debt and pay it down faster.
If you want a card with a 0 percent intro APR offer, you’ll have to keep that in mind when shopping for a 1.5 percent cash back card.
If you don’t have any debt to consolidate or a large purchase planned, the importance of this may be reduced for you. With CardMatch, you’ll receive personalized offers that align with your credit score range. Once you determine if you’re preapproved, you can make a more informed decision about whether to apply for the card. When selecting a 1.5 percent cash back credit card, it’s essential to consider various factors such as rewards, welcome bonuses, credit requirements, and annual fees. Here are some top picks from major issuers:
1. American Express Cash Magnet® Card:
– Rewards: 1.5% cash back on all purchases (terms apply)
– Welcome bonus: Earn a $150 statement credit after spending $1,000 or more in purchases within the first 3 months
– Credit required: Good to excellent
– Annual fee: $0
2. Bank of America® Unlimited Cash Rewards credit card:
– Rewards: 1.5% cash back on all purchases (up to 2.62% based on Preferred Rewards)
– Welcome bonus: $200 online cash rewards bonus after spending $1,000 in the first 90 days
– Credit required: Good to excellent
– Annual fee: $0
3. Capital One Quicksilver Cash Rewards Credit Card:
– Rewards: 1.5% cash back on all purchases and 5% cash back on select bookings
– Welcome bonus: Earn a $200 cash bonus after spending $500 within 3 months
– Credit required: Good to excellent
– Annual fee: $0
4. Chase Freedom Unlimited®:
– Rewards: 5% cash back on travel, 3% back on dining and drugstores, and 1.5% cash back on other purchases
– Welcome bonus: Earn extra cash back on up to $20,000 spent in the first year
– Credit required: Good to excellent
– Annual fee: $0
When comparing these cards, consider your spending habits and financial needs to choose the best fit. Some cards offer higher rewards in specific categories, while others provide a flat rate with no annual fee. Additionally, there are cards with a 2 percent cash back rate to consider if you prefer a higher reward rate. Compare the rewards rates, features, and fees to find the ideal cash back card for you.
It’s essential to note that the information provided about the American Express Cash Magnet® Card and Bank of America® Unlimited Cash Rewards Secured credit card is independently gathered by Bankrate and has not been reviewed or approved by the issuer. The Bank of America content was last updated on August 8, 2024.