You can get a higher flat rate
The Capital One Quicksilver Cash Rewards Credit Card set the 1.5% standard for an entire generation of cash-back credit cards. But nowadays, there are a growing number of cards on the market that offer a flat rate of at least 2% back.
For example, the Wells Fargo Active Cash® Card pays an unlimited 2% cash back on purchases. It also features a sign-up bonus as well as an introductory interest-free period on purchases and balance transfers: 0% intro APR on Purchases for 15 months and 0% intro APR on Balance Transfers 15 months from account opening on qualifying balance transfers, and then the ongoing APR of 20.24%, 25.24%, or 29.99% Variable APR.
Limited opportunities for bonus rewards
The card only earns more than 1.5% for a very specific type of purchase through the issuer: 5% cash back on hotels and rental cars booked through Capital One Travel. Otherwise, it earns 1.5% on everything. Flat-rate rewards are ideal for people with varied spending habits. However, if you spend a significant chunk of your budget in specific spending areas, like gas and groceries for example, consider a card that specifically rewards these types of transactions. The $0-annual-fee Blue Cash Everyday® Card from American Express, for instance, earns 3% cash back at U.S. supermarkets, at U.S. gas stations and on U.S. online retail purchases (on up to $6,000 per year in spending in each category). Other purchases earn 1% back. (Terms apply — see rates and fees.)
If you spend a lot at the supermarket, take a look at the Blue Cash Preferred® Card from American Express. It charges a $0 intro annual fee for the first year, then $95. Still, it packs richer rewards: 6% cash back at U.S. supermarkets, on up to $6,000 a year in spending (then 1%); 6% cash back on select U.S. streaming subscriptions; 3% cash back at U.S. gas stations and on transit; and 1% cash back on all other purchases. These cards also include welcome offers for new cardholders and 0% introductory APR periods. (Terms apply — see rates and fees.)
Alternatively, if you don't mind logging into your account every quarter to opt into bonus rewards categories, you may want to opt for a 5% rotating bonus category card like the Chase Freedom Flex℠ or the Discover it® Cash Back.
Both of these cards earn 5% cash back in categories that change every three months; you have to opt in to the category each time it changes. The 5% cash back is good on up to $1,500 per quarter in spending. All other spending earns 1% cash back. The current bonus categories for both cards can be found here.
