The Math Doesn't Lie. This 2% Card Beats Most Rewards Cards Over Time
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Most credit card users earn far less than they should.
In fact, the average cash back rate across credit cards is just 1.17%, according to WalletHub's 2025 Credit Landscape Report. That means someone spending $10,000 a year is only getting $117 in rewards.
Now compare that to a card like the Wells Fargo Active Cash® Card (rates and fees), which offers unlimited 2% cash rewards on all purchases. That same $10,000 in spending earns you $200 -- nearly double the average of everyone else.
The numbers speak for themselves, and the gap only widens as you scale up your spending.
Where a 2% cash rewards card shines: "everything else"
Many popular rewards cards offer higher rates in specific categories -- like 5% on travel or 3% on dining. But they fall flat usually with just 1% back on general spending.
Here's how the math might play out for someone spending $3,000/month ($36,000/year) across mixed categories:
| Category | Annual Spend | Rewards (1%-5%) |
|---|---|---|
| Travel | $4,000 | 5% = $200 |
| Dining | $3,000 | 3% = $90 |
| Gas | $2,000 | 2% = $40 |
| Everything else | $24,000 | 1% = $240 |
| Total | $36,000 | $570 |
Earning $570 in cash rewards is nothing to sneeze at.
But, if instead we switch this to using a flat-rate 2% cash rewards card across all $36,000 in spending, it would earn $720 total in a year.
High reward category cards can be great. But only if you perfectly optimize your spending across those niche spending areas.
Most people don't, of course. And that's where a flat-rate cash back card becomes the clear winner. You don't need to activate offers, track bonus calendars, or do mental math at checkout.
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Intro APR 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers
Purchases: 0% intro APR on purchases for 12 months from account opening
Balance Transfers: 0% intro APR for 12 months from account opening on qualifying balance transfers
Regular APR
18.99%, 23.99%, or 28.99% Variable APR
Rewards Earn unlimited 2% cash rewards on purchases.
2% cash rewards
Annual Fee
$0
Welcome Offer Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
$200 cash rewards
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This card’s unlimited 2% cash rewards on purchases is the highest we’ve seen for a flat-rate rewards card with no annual fee. It also has an incredibly easy-to-earn $200 welcome bonus after spending $500 in purchases in the first 3 months. The intro APR is decent too -- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers (18.99%, 23.99%, or 28.99% Variable APR applies after). We simply haven’t come across this combination of top perks in one card before.
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- Unlimited 2% cash rewards
- Long 0% intro APR offer
- Generous cash rewards welcome bonus
- No annual fee
- Cellphone protections
- No bonus categories
- Foreign transaction fees
- Balance transfer fee
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- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.99%, 23.99%, or 28.99% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
No annual fee means more money in your pocket
Another thing to consider is that most top-tier rewards cards charge annual fees. This can be $95 per year, or way higher for luxury cards.
So even if you do manage to earn $570 in rewards, your net benefit might only be $475 after fees.
The Wells Fargo Active Cash® Card has a $0 annual fee, which means every dollar you earn in cash rewards is pure upside.
There's no break-even point to worry about, especially for folks with low spending.
A welcome offer that's easy to earn
This is just icing on the cake. The Wells Fargo Active Cash® Card has a welcome offer for new applicants…
Earn $200 cash rewards after spending $500 in the first 3 months.
That's a really easy spending requirement, which most people can hit by buying regular stuff.
Combined with the 2% cash rewards rate, and the first year value with this card is pretty amazing.
Boost your rewards with a two-card combo
The Wells Fargo Active Cash® Card works great as a standalone rewards card. But if you already have a favorite rewards card, it can act as a great companion to fill in the gaps.
Here's how a simple two-card strategy works:
- Use your primary card in its high-earning categories (like a travel card for booking travel)
- Use the Wells Fargo Active Cash® Card for everything else to lock in 2% cash rewards
It requires a little more effort than just using a single card everywhere, but gives you the best of both worlds.
And since Wells Fargo Active Cash® Card charges no annual fee, there's no downside to keeping it in your wallet -- even if it's your "backup" swipe.
Want to dig deeper? Read our full review of the Wells Fargo Active Cash® Card here to explore all the perks.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.