Cash Back vs. Points: Are We Playing the Wrong Credit Card Game?

#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.

Link to Full Show Notes: https://allthehacks.com/cash-back-vs-points-credit-cards

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All the Hacks

• Credit Card Optimization Tool v2 (w/ $10 Discount)
• All the Hacks Membership
• 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

• Robinhood Gold Card
• Bank of America® Premium Rewards® Credit Card
• Discover it® Miles

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

• Discover it® Cash Back Credit Card

Dining/Restaurants

• Capital One Savor 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

• BMO CashBack® Mastercard®

Gas

• Abound Visa® Platinum Card

Entertainment/Streaming

• Capital One Savor Cash Rewards Credit Card

Rent

• Bilt Mastercard®

Mobile Wallet:

• U.S. Bank Altitude® Reserve Visa Infinite® Card + Real Time Rewards

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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