For those of you with cards that earn points and cashback in the same categories when do you guys decide to switch back and forth?
Do you guys just reach certain amount of points that you're comfortable with then switch to the cashback? What amount of points makes you guys switch?
5% Cashback vs 3x Points. When do you guys switch?
byu/TheChildOfAtom inCreditCards
Posted by TheChildOfAtom
4 Comments
Depends what you value points at. 2cpp? Then 3x is better. 1cpp? 5% is better.
3x for me, i won’t redeem points for fewer than 2cpp.
Speaking for myself, no point in switching back and forth. But currently I am using the Amex Biz Gold for 4X on gas and I have the AAA travel advantage for 5%. I’m considering once the AF hits for the Biz Gold, to cancel it and switch to the AAA.
The math ain’t mathing for me because of the AF since I don’t spend that much on gas even with my Turo business. So it makes no sense to hold this card just for that and just get 5% back on a no AF card is the logical choice.
The TLDR, switch when it makes sense mathematically to put you in the net positive value-wise.
I’d take the 5% cash back personally, it’s more reliable. I can put that money to work almost immediately, rather than once or twice a year for a big trip where I have to plan the trip around reward availability.