The Clark Howard Podcast 10.27.25 The Credit Card Rewards Game / New Tax Brackets & Your 401(k)
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Oct 27, 2025 Discover the ins and outs of reward credit cards as Clark reveals how issuers profit and when they truly benefit cardholders. He explains the advantages of no-annual-fee 2% cash-back cards for most consumers. Dive into the new tax brackets and learn why a Roth 401(k) might be the best choice for many, offering tax-free growth in retirement. Additionally, Clark discusses strategies for handling medical bills and securing linked payment app accounts. This episode is packed with insights to help you manage your finances wisely!
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Rewards Drive Big Profits
- Reward credit cards are massive profit centers for issuers and airline partners.
- Card issuers chase high-credit, low-utilization customers with bonuses and category rewards.
Prefer 2% Cash Back Over High-Fee Cards
- Most people should prefer no-annual-fee 2% cash-back cards instead of high-fee points cards.
- Use cash-back to fund travel rather than paying big annual fees you can't justify with your spending.
Rewards Chasers Treat Cards Like A Hobby
- Many rewards enthusiasts manage dozens of cards and treat it like a hobby to chase signup bonuses and premium perks.
- This lifestyle requires time, discipline, and high monthly spending to justify big annual fees.