Frequent Miler on the Air When are points better than cash & vice versa? | Coffee Break Ep39 | 12-31-24
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Jan 1, 2025 Discover the intriguing battle between points and cash back in credit card rewards. The discussion highlights the Smartly credit card's enticing 4% cash back rate, weighing when cash trumps points. Explore strategies for maximizing both travel points and cash rewards, revealing hidden costs of point accumulation. Delve into the unique benefits of using travel points for flexibility in bookings. Plus, learn how to efficiently evaluate loyalty points versus cash rewards to enhance your spending power!
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Opportunity Cost of Points
- Earning 2 points per dollar everywhere seems good, but it has an opportunity cost, especially with high cash-back cards.
- Choosing points over 4% cash back is like buying points for 2 cents each, which is often too expensive.
Maximize Rewards with Cash Back and Sales
- Maximize rewards by earning cash back and buying points during sales.
- This strategy can yield high returns, such as 8 points per dollar with Hilton or IHG points.
Maintain Transferable Points
- Don't rely solely on cash back; maintain transferable points for spontaneous travel deals.
- High-value opportunities often appear unexpectedly, requiring readily available points.