Yes, believe it or not, it is possible to get a credit card with 2% cash back. When you think about it, this is a must have for everyone. Why? Because even if you have a card that gives you higher rebates on certain categories (i.e. groceries, gas, airfare, etc) you are likely only getting around 1% (or less!) on everything else you buy. You’re basically losing easy money that you could be getting with 2% cash back credit cards.

Which cards give you 2% cash back? (or a 2% rebate?)

Over the past decade or so, there have been a very small handful. Unfortunately many of them are no longer available. For example, the popular Schwab 2% cash back card was discontinued for new applicants in 2010 (and then in 2011 existing cardholders were switched over). HSBC used to have the “weekend card” that gave 2% but only on Saturday and Sunday… that too was discontinued. Fortunately there are still a few 2% cards that are going strong in 2012…

#1 Top Choice: Capital One Venture – Let me be clear that this isn’t a true “cash back” card because if you redeem for cash, the value will be lower (so you will not be getting 2% on your spending). However if you spend your rewards on travel, it’s like earning 2% on all your spending.

You see the card gives 2 miles per dollar spent. Those miles can be redeemed to offset travel purchases you make with the credit card, at a rate of 1 mile = $0.01 credit towards the travel purchases.

Right now this is the best 2% card on the market since there are no foreign transaction fees and no limits to the amount of rewards you can earn. To learn more and to see the current promotional offer check out my Capital One Venture Rewards credit card review.

#2. Fidelity American Express – This is an excellent choice if you have a Fidelity account (unfortunately you can’t apply without one). It is a 2% cash back credit card and the rewards are deposited into your Fidelity account (brokerage account, IRA, etc.). While the Schwab card no longer in existence, this one from Fidelity is now the best brokerage affiliated cards on the market.

#3. Discover Escape – This little known gem is hard to beat. It gives 2 miles for every dollar spent. Each mile equals $0.01 that can be used to pay for virtually any travel related purchase you make. So you are essentially getting a straight 2% cash back on everything.

For example, let’s say you bought a plane ticket on Expedia… afterwords you could call up Discover and have them credit your account for the value of that purchase, using your accumulated “miles”. To learn more here is our Discover Escape card review. The only drawback is that while Discover’s domestic acceptance is now strong, using it outside of the U.S. will be tough in most parts of the world (for that reason, the Venture is a better choice).

#4. Household Bank Rewards – [2012 update: now closed to new applicants] This card was available years ago and it was re-launched in summer 2011. It gives a flat 2% on everything you buy and if you have good credit, there is no annual fee. The downside is that this card is geared towards those with mediocre credit, so don’t expect stellar service or benefits. The credit limits may not be that fabulous either. But that aside, it’s the only 2% card that doesn’t have an annual fee and anyone can apply for it. Here is a full review of the Household Bank card. Update – unfortunately this one has once again been discontinued for new applicants during late 2011.

#5. Honorable Mention: The new Blue Cash Preferred – This card is not 2% but it gets an honorable mention and here’s why – you get 3% to 6% cash back on category spending, without any spending thresholds to meet. Depending on your spending patterns, your average cash back might very well reach or even exceed 2%. To learn more check out our American Express Blue review.

This post will be updated if any new 2% cash back credit cards hit the market.