Since the average American has four credit cards, many have a card specifically for travel, groceries, or gasoline. While this covers a wide variety of categories, it is difficult to have a card for every buying situation you may come across for maximum revenue. This is where your Catchall 2% cashback credit card comes in. Today, the Citi® Double Cash Card and Wells Fargo Active Cash℠ Card are competing for a spot in your wallet in a 2% credit card showdown.

Consider the Citi® Double Cash Card for:

2% cashback profit structure

Citi Double Cash uses their 2% credit card differently than most. You earn unlimited 1% cashback when you make a purchase and 1% when you settle your balance. If you charge your card an average of $ 1,000 per month and pay it off in full each month, you will receive $ 240 in cashback every year. With this or any other credit card, it is imperative that you settle your balance in full each month in order to avoid monthly interest charges. Accruing monthly interest fees will wipe out your income and a lot more.

0% introductory APR offer

0% introductory APR on balance transfers for 18 months. Thereafter, the standard variable APR is 13.99% – 23.99%, based on creditworthiness. There is also an initial balance transfer fee of either $ 5 or 3% of the amount of each transfer, whichever is greater and which is completed within the first 4 months of the account being opened. Thereafter, the fee is 5% of each transfer (minimum $ 5). You must complete your fund transfer within the first four months of opening your account to receive the promotional offer, and transfers will not be rewarded. This promotion is a great option for short term debt consolidation, especially when the consolidated debts have a much higher interest rate.

Redemption options

A withdrawal of at least $ 25 is required to redeem your cashback. This means that you must spend and deposit $ 1,250 on the card before you can redeem it. Rewards can be in the form of bank statement credits, a direct deposit, or a check in the mail. As a bonus, you can also convert rewards into Citi Thank You Points, which gives you access to travel credit and various gift card options when you combine them with another thank you trading card.

Various advantages

As a cardholder, Citi offers credit management tools including a free FICO score. This helps to keep your general creditworthiness profile and can lead to an early detection of errors in your report. In addition, Citi Entertainment is also accessible and has access to pre-sale tickets for events such as music festivals or professional sporting events.

Consider the Wells Fargo Active Cash for:

Welcome offer

Credit cards with large and small welcome offers are becoming more and more popular. Unfortunately, Citi Double Cash does not offer a welcome offer. The Wells Fargo Active Cash, on the other hand, offers a welcome bonus: $ 200 cash reward bonus after spending $ 1,000 on purchases in the first 3 months.

2% cashback profit structure

This card has a more traditional earnings structure where you simply return 2% cash on all purchases. Again, it is important to ensure that the credit card balance is paid in full, as paying interest can quickly wipe out the 2% cashback earned.

0% introductory APR offer

Wells Fargo Active Cash takes a different approach to its 0% introductory offer compared to Citi Double Cash. An offer of 0% introductory APR for 15 months from account opening for purchases and qualifying credit transfers, then a variable APR of 14.99% to 24.99% applies. Funds transfers made within 120 days qualify for the introductory rate and 3% fee. Balance transfers made after this point in time will be charged a fee of up to 5%, min .: 5 USD

Redemption options

You can redeem them for as little as USD 1 in rewards. You can use rewards to offset purchases made on the card as credit towards a qualifying Wells Fargo mortgage or loan, as cash from a Wells Fargo ATM ($ 20 minimum), or gift cards.

Various advantages

Active Cash offers $ 600 cell phone protection against damage and theft when you use this card to pay your monthly cell phone bill (subject to a $ 25 deductible). Concierge service is available 24/7 to cardholders for their travel, dining and entertainment needs. You can also enjoy a number of benefits at Visa Signature Collection hotels and accommodations when paying with your credit card. Please note that fees for international transactions are charged for both cards. So, consider both cards to be US-only cards.

Do not consider the Citi Double Cash or the Wells Fargo Active Cash if:

2% cash back credit cards can be “too” easy

Some people like simplicity and there’s nothing wrong with that. Both programs are pretty straightforward with an effective cashback of 2% on all purchases. However, it is possible to maximize rewards earnings by taking a closer look at your spending habits and choosing one or more cards that synchronize bonus categories with your highest spending categories. Cards with transferable rewards such as Chase Ultimate Rewards or American Express Membership Rewards may also offer higher value.

You want a bigger welcome bonus or more benefits

Another good credit card for everyday life is the Capital One Venture Rewards credit card. This card comes with an annual fee of $ 95 but has a number of benefits with every purchase that go beyond the 2 miles per dollar. It comes with a generous welcome offer: 60,000 miles if you spend $ 3,000 on purchases within 3 months of opening your account.This welcome offer is far more valuable than that from Wells Fargo Active Cash and don’t forget that Citi Double Cash is not a welcome offer at all.

The Venture Card is intended for travelers to use as $ 100 credit towards their TSA PreCheck or Global Entry application fee, with no overseas transaction fees. And best of all: you can redeem miles for more than just cash. Capital One works with many travel programs so that you can transfer the miles you have earned to them. This flexibility automatically increases the value of your miles.

Bottom line

Due to its simplicity, the 2% Cashback card is generally one of the first credit cards that you should have in your portfolio. None of these cards have an annual fee. Even if the card isn’t used a lot, one of them could make a fantastic card to keep for years to improve your average credit age and otherwise earn 2% cashback on unused purchases. With different options for redeeming rewards, each card could fit into your consumer lifestyle and form a good foundation for future credit card options. Just make sure you are aware of the restrictions on the cards.