I want to spend way less time and energy trying to maximize rewards. I will give up on the CSR/CFU combo.
Is the simpler approach to just focus on cash back?
Is cash back the simplest approach to maximizing rewards?
byu/HoodFeelGood inCreditCards
Posted by HoodFeelGood
8 Comments
It is absolutely the simplest. And for most people who don’t travel hat often (I would say 0-3 times a year) it makes the most sense IMO.
Not only is it simple, but I think it’s higher value as well.
I used to think points were alwasy better than cash back, but the more I used points the more I have come to the conclusion that it’s sometimes the case that cash back is better.
I don’t travel often, but when I do, I can always grab a travel credit card when I need it for a big trip. I’m not sure how much you’re into managing your money or investing, but I’m guessing the basic idea is to get a cash-back credit card and use the cash you earn to invest. I’m assuming that if you don’t travel much, the returns from your investments could outweigh the savings from cheaper flights and hotels from a travel card. The downside of good travel cards is that you have to pay an annual fee, and points can lose value. Credit card companies aren’t stupid and will try to make it tricky to figure out how much you can gain or lose based on your habits. That’s just my two cents. Also cash back is just simple. You don’t have to figure out what airline will give the back value because each airline will have different multipliers or special events. Just less of a headache and you can just live your life.
Cashback is the simplest approach. Among cashback cards, flat rate cashback is the easiest because you can not accidentally use it for any low reward category.
I ended up cash back.
I run a hybrid set up as I just want to spend on a few cards and get decent multipliers and that is good enough for me.
Despite traveling often and having some flexibility, I found finding award flights for business and first with multiple travelers a pain–times, type, phantom listings, etc. Similar with hotels, assigned subpar rooms when booked with points, etc. These are my experiences and I have respect for the game others play, and the redemptions they score.
So I focus on the **front end** in terms of multipliers, and just look for optionality in terms of redemption. I don’t want to be forced into transfer partners or portals unless I choose so.
But I don’t think cash back means the CSR is dead; I am killing it so far this year with 8X Edit bookings and 4X flight bookings.
It definitely is the simplest approach, hence why I’m strictly team cashback with my cards. We are not huge travelers so we focus on just earning $ back on every purchase we make, my wallet is
1) Citi Custom Cash x2
2) Amex BCE
3) WF Autograph
4) BoA Customized Cash
5) US Bank Cash+ (5% on utilities and internet)
This setup generates an insane amount of cash back, and then I pair these cards with upside for gas, 10-15% back on grocery store offers and also use Rakuten.
Only for low spend or low travel expenses
Yes. I think cash back is quickly becoming the best approach even for people who use points. The value of points has declined significantly in recent years, and now I think the best approach is to have one travel card for benefits and protections, one flat 2% or better catch-all card, and as many 4-5% category cards as you can manage. You can transfer all your cash rewards to a HYSA every month and let that be your vacation fund. The work involved is far less than the work needed to search for the best deals on award flights and hotels stays. You can also take advantage of discounts offered through discount travel sites and wholesalers.
A few other cards you can consider include an airline card for free checked bags and priority boarding if you use an airline regularly, and a hotel card with an annual free night certificate if you are loyal to a certain hotel brand. Neither of those cards would be used for everyday spending.
You could argue that points are still the best way to go for people who only fly on business or first class, but for stretching your dollar, I think cash is the way to go.