Maximizing your cash back – the difference between 1.5% and 2%

Think quick!  Is it better to earn 2% cash back with a $100 introductory bonus, or 1.5% with a $150 introductory bonus?

Here’s a hint: it’s a trick question! So let’s break it down:

2% is $20 on every $1000, or $200 on every $10,000. (+ $100 bonus = $300)
1.5% is $15 on every $1000, or $150 on every $10,000. (+ $150 bonus = $300)

With these calculations, each with their respective introductory bonuses, at $10,000 in spending… news flash: they are essentially the same!

Hmm. Did you guess right?

Here are a few examples:

Capital One Quicksilver Rewards – 1.5%

Chase Freedom Unlimited – 1.5%

– Wells Fargo Cashwise – 1.5% – now has a $200 introductory bonus

– Paypal Cashback 2%*

– Citi Double Cash Card– 2%

*Does not have a new card member bonus

Maximizing your cash back – the difference between 1.5% and 2%