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May 1, 2024
Cash Back vs. Points: Are We Doing It All Wrong?
#170: Chris makes a case for cash back in your credit card strategy based on some recent changes in the points and miles world. He goes deep on strategies for every spending category and shares his analysis of how to optimize points vs. cash back for the best ROI.
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Resources Mentioned:
- Credit Card Optimization Tool v2 (w/ $10 Discount)
- ATH Membership
- Best Credit Cards Page
Credit Cards Mentioned
Note: Not all cards are allowed to be mentioned here, so for a full list, visit our Best Credit Cards Page
Overall Spend
Higher Cash Back in 1-2 Categories
- U.S. Bank Cash+® Visa Signature® Card
- Citi Custom Cash℠ Card
- Bank of America® Customized Cash Rewards Credit Card
Rotating Categories
Dining/Restaurants
- Capital One SavorOne Cash Rewards Credit Card
- U.S. Bank Altitude® Go Visa Signature® Card
- American Express® Gold Card
Travel
- The Platinum Card® by American Express
- U.S. Bank Altitude® Reserve Visa Infinite® Card
- Wells Fargo Autograph Journey℠ Card
Grocery/Supermarkets
- Blue Cash Preferred® Card from American Express
- AAA Daily Advantage Visa Signature ® Credit Card
- American Express® Gold Card
- Verizon Visa® Card
Internet/Cable/Phone Bills
Gas
Entertainment/Streaming
Rent
Mobile Wallet:
Resources Mentioned
Wealthfront: Get $5k managed free & get a 0.5% APY boost
Copilot: Free 2 months access to my favorite personal finance app with code HACKS2
X (Twitter) post: Couple opened 26 credit cards in 2017 and earned 2M points
Full Show Notes
(00:00) Introduction
(01:55) Chris' Personal Points & Miles History
(02:48) 3 Big Changes to Chris' Credit Card Strategy
(04:29) How to Take Advantage of Transfer Bonuses to Book Flights
(11:49) The Basics of Cash Back
(12:50) Best Cash Back Cards for Overall Spend
(14:06) Cards for Higher Cash Back in Certain Categories
(15:11) Other Category Spend
(19:42) Best Cards for Dining
(20:40) Travel Category
(21:44) Uncapped Card for Gas
(21:56) Cards for Groceries
(22:26) Internet, Phone Bill, and Cable Category
(22:35) Chris' Revamped Card Optimization Spreadsheet
(26:35) Main Cards for Team Points Vs. Team Cash Back
(27:44) Chris' Analysis & Category Run Through
(33:42) The Biggest Takeaway on Cash Back
(36:24) Cards for Spending Categories Like Rent, Entertainment, and Office Supplies
(39:32) The Big Wrench: Welcome Bonuses
(41:58) The Points & Miles Game With Player 2
(43:14) Credit Card Issuer Rules for Welcome Bonuses
(48:03) Quick Summary and Chris’ Final Takeaway
Editor’s Note: The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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Editor’s Note: The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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