1.5% cash back credit cards options

Quick insights

• Cash back credit cards allow cardmembers to earn a percentage back from purchases they make with their cards.
• Cash back may vary between credit cards and/or spending categories.
• Chase Freedom Rise^® and Chase Freedom Unlimited^® are two examples of 1.5% cash back credit cards.

Many consumers choose their credit cards based on the potential rewards they can earn with them—including cash back. Cash back credit cards can be popular options due to their rewards structure. Typically, these credit cards allow cardmembers to earn a certain percent of cash back either at a flat rate, on tiered categories or on rotating categories.

Read on to learn whether a 1.5% cash back credit card could be a good option for you, which 1.5% cash back credit card might be right for you how to earn and redeem cash back rewards.

Understanding how cash back credit cards work

Cash back is a type of reward that credit card customers can earn when they use their card on eligible purchases. The cash back a cardmember earns on purchases can usually be redeemed for statement credits, a direct deposit, gift cards or travel.

Depending on your specific credit card, you can earn cash back on different spending categories. Common cash back categories include grocery stores, gas stations and restaurants (note that these categories may differ depending on your specific credit card and current offers).

Calculating 1.5% cash back credit card rewards rate

While your credit card may have specific rules regarding how you can earn cash back, you can calculate potential cash back earnings with simple math.

Say you spend $1,000 on eligible cash back categories with your credit card. If your card earns a flat rate of 1.5%, you would earn $15 in cash back for the $1,000 spent.

The equation for finding out this figure it: 1000 (dollar amount spent) x 0.015 (1.5%) = 15.

Cash back credit cards tend to offer earning rates between 1% and 5% cash back but often have rules regarding what you can earn cash back on. So if you find a credit card that offers a flat rewards rate of 1.5% cash back with a simple earning structure, that could be a good option.

Wondering if this kind of credit card works for you? Next, we’ll dive into different ways to earn cash back and how to redeem it.

1.5% cash back reward credit card options

Both the Chase Freedom Rise and Chase Freedom Unlimited credit cards offer the potential to earn 1.5% cash back on purchases. Depending on your credit card reward preferences, one option may be better for you than the other:

Chase Freedom Rise

The Freedom Rise card can be a great option for those new to credit. Cardmembers earn 1.5% cash back on every purchase. Cash back rewards don’t expire as long as your account is open. There is no minimum to redeem for cash back.

This may be a good choice for those still building credit, as Freedom Rise cardmembers are typically evaluated for an increase in credit limit in as soon as 6 months.

Chase Freedom Unlimited

The Freedom Unlimited card also offers 1.5% cash back on most purchases.

Cardmembers can also earn:

• 3% cash back on dining at restaurants, including takeout and delivery services
• 3% cash back on drugstore purchases
• 5% cash back on travel purchased through Chase Travel

Cash back rewards do not expire as long as your account is open; there is no minimum to redeem for cash back.

Ways to earn cash back with credit cards

There are a few main ways to accumulate cash back with a credit card:

• Flat-rate amount: Some cards earn a flat amount of cash back regardless of specific category. In other words, some credit cards earn an unlimited 1.5% cash back on any eligible purchase.
• Tiered categories: Some cards offer a higher percentage of cash back earnings for specific categories. For example, a card might offer 1.5% cash back on most purchases but an elevated 3% cash back on travel or restaurant purchases.
• Rotating categories: Cards also might offer rotating categories (typically monthly or quarterly) where cardmembers can earn cash back at an accelerated rate. Some examples could include broader categories like electronics, dining or rideshare purchases.

How to redeem cash back rewards

If you have a Chase credit card, you can redeem your cash back through Chase Ultimate Rewards^®. With Chase, cash back rewards can be redeemed for the following:

• Cash back: There is no minimum to redeem for cash back. Cardmembers can choose to receive either a statement credit or direct deposit into most U.S. checking and savings accounts.
• Amazon purchases: Linking your Chase credit card to your Amazon.com account allows you to instantly redeem cash back rewards for all or part of eligible Amazon.com orders at checkout.
• Gift cards: Cash back can be redeemed for various shopping, dining and entertainment gift cards.
• Travel: You can also use your cash back to plan your next trip with Chase Travel.

In summary

Using your cash back credit card strategically can help you earn more rewards over time. For example, your credit card might offer tiered or rotating accelerated earnings categories.

A credit card with a flat 1.5% cash back rate may also be a great option for those who want a card with a simple earning structure.