5 Things to Know About the Bread Credit Card

It offers 2% back on all purchases, with no annual fee or complicated rewards structure. Unfortunately, there's no welcome offer.
Jae Bratton
By Jae Bratton 
Edited by Erin Hurd

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If you’re looking for a credit card that earns solid rewards with little effort, the Bread Cashback American Express Credit Card belongs on your shortlist.

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Issued by Comenity Capital Bank, the Bread credit card is as user-friendly as it gets: Make a purchase, get cash back. That simplicity comes at a price, though. Cards that require active maintenance — such as the Chase Freedom Flex® — often have higher rewards rates.

Indeed, even compared with other 2% flat-rate cards, the Bread credit card falls a little short. It doesn’t have extra goodies like cell phone insurance, an intro annual percentage rate (APR) offer or a welcome offer, as some of its competitors have.

Here are five things to know about the Bread Cashback American Express Credit Card.

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The Bread Cashback American Express Credit Card is different from the similarly named Bread Rewards American Express Credit Card, which as of this writing is available by invitation only. The Bread Rewards card has a tiered rewards structure that tops out at 3% for gas, groceries, dining and utilities purchases, and it has a wider range of reward redemption options.

1. The ongoing rewards rate is excellent

Image courtesy of Bread

The Bread Cashback card earns an unlimited 2% cash back on all purchases, a shade better than the 1.5% back you'll find on some other flat-rate cards. So if you spend $1,000 in a month, you’ll get $20 back. The lack of a tiered rewards structure will surely please those who don’t want to fuss with bonus categories and activation deadlines.

Cash back earned with the Bread credit card doesn’t expire as long as the account is open and in good standing.

2. Redemption options are limited

While other cash-back cards may allow you to redeem rewards for a direct deposit, statement credit, gift cards, credit toward previous purchases or even a deposit into an investment account, your redemption options with the Bread credit card are limited to a direct deposit or statement credit.

If you want a statement credit, you may complete the redemption yourself from your Bread account; for a direct deposit, you’ll need to call Bread’s customer service, an uncommon requirement.

Redemption amounts are more flexible. Whether you opt for a direct deposit or statement credit, cash back may be redeemed for as little as 1 cent. Other credit cards may have redemption minimums that can be as high as $25.

3. It’s free of some fees

The perks associated with the Bread credit card don’t cost a thing, a perk in its own right. The card’s annual fee is $0, and there’s no foreign transaction fee, either.

4. There’s no welcome offer

One of the few knocks against the Bread credit card is the lack of a welcome bonus. Other cash-back cards with a $0 annual fee tend to feature bonuses worth up to $200. So you might be leaving some money on the table.

5. Reap extra benefits through American Express

Thanks to its affiliation with American Express, the Bread credit card offers access to more perks. You can save money by enrolling in AmEx’s card-linked offers or participating in the #AmexforFoodies program. The latter gets you a 20% discount on dining or a free appetizer, but only at certain restaurants, most of which are in major U.S. cities.

The card also grants cardholders early access to tickets for select events and car rental insurance up to $50,000 per vehicle.

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