Cash Back vs. Points: Are We Playing the Wrong Credit Card Game?
ฝัง
- เผยแพร่เมื่อ 26 มิ.ย. 2024
- Based on some recent changes in the points and miles world, I'm going to make a case for cash back as your credit card strategy. I'll do a deep dive on strategies for every spending category and share my analysis of how to optimize points vs. cash back for the best ROI. Click "More" to see the Advertiser Disclosure.
All the Hacks
Credit Card Optimization Tool (w/ $10 Discount): allthehacks.com/cardtool
All the Hacks Membership: allthehacks.com/join
Credit Cards Page: www.allthehacks.com/cards
Copilot (2 months free with HACKS2): allthehacks.com/copilot
Full Show Notes
00:00:00 - Introduction to the episode.
00:01:55 - Chris shares his personal points and miles history.
00:02:48 - Three significant changes to Chris' credit card strategy.
00:04:29 - Utilizing transfer bonuses for flight bookings.
00:11:49 - Overview of cash back basics.
00:12:50 - Top cash back cards for general spending.
00:14:06 - Cards offering higher cash back in specific categories.
00:15:11 - Spending in other categories.
00:19:42 - Recommended cards for dining.
00:20:40 - Discussion on travel spending.
00:21:44 - Credit card offering uncapped cash back on gas.
00:21:56 - Best cards for grocery shopping.
00:22:26 - Credit cards that cover internet, phone, and cable bills.
00:22:35 - Introduction to Chris' updated card optimization spreadsheet.
00:26:35 - Primary cards for both points enthusiasts and cash back fans.
00:27:44 - Chris provides a detailed analysis and runs through categories.
00:33:42 - The major takeaway regarding cash back strategies.
00:36:24 - Cards that cover rent, entertainment, and office supplies.
00:39:32 - Discussing the impact of welcome bonuses.
00:41:58 - The strategy of earning points and miles as a team.
00:43:14 - Rules that credit card issuers follow when offering bonuses.
00:48:03 - Brief summary and final takeaway by Chris.
Advertiser Disclosure: All the Hacks is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as MileValue.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
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.
This was, by far, one of the most informative episodes of any podcast in the credit card space. Tremendous job. Thank you
That means a lot, thank you!
If you are spending "millions and millions on credit cards each year" then you don't need to worry about paying cash for a flight.
Haha fair point!
love the energy chris!
Thanks Paul!
Solid video
When you make the episode about the 4 card combos, please consider "low annual or no annual fee" combos, too!
Will do! But if the annual fee pays for itself do you consider that low/no fee? Like the venture X ($395 fee with $300 credit and $100 worth of points)
@@allthehacks Venture X yes but a card like AMEX Gold is too situational as I wouldn't use any of the credits "naturally" to make it -$240.
Hi! Your video quality is 😍. What camera are you using? Thx.
Thanks! This one was a Sony A7C (28mm Sony lens) and ZV-E10 (kit lens).
Really got me thinking about how I encourage my P2 to participate. 🤔
Great topic for a future episode!
Great video. Caveat...would you say anyone playing significant MS mode, makes out far better with the points method?
Really depends. If you can MS high % cash back cards, you might still come out ahead. Especially if you don’t value luxury travel.
Based on my experience (living in the US, and mostly traveling to Europe), pretty much everywhere accepts mobile wallet except Walmart and utilities (and gas if you use Walmart+ for the discount) My ideal setup would be:
Catch-all: Altitude Reserve (4.5%)
Utilities: Cash+ (5%)
Gas: Custom Cash (5%)
Walmart (Neighborhood Market): Gold 4x
Alternatively, the Wyndham card could be used to simplify the setup with 5x utilities and 8x gas.
I like the setup, but I just looked at my 2x card and most things won’t accept mobile wallet. It’s primarily the online transaction, especially recurring one. For me that includes stuff like Dog Food, Museum Memberships, Spotify, Subscriptions (eg netflix, Substack, peloton, patreon), Car Insurance, Ski Lift Tickets. So I’d want to add a 2x card (if going for points) or a 2.625%/3% card (if going for cash back).
23:05 Is the optimizer tool a living document that’ll be regularly updated with new cards or changing benefits to existing cards? I saw in the video there were previous versions available, just wondering if that’s something you’re considering or is currently available.
At least for the next year, I’ll be adding cards (including at request)
Just got the td business card with 5% for the first 10k then 2% after plus a 250 welcome bonus after 1.5 k spend .... 9k limit
Don’t forget all the cards that have the spend $500 and get $200 back SUB, that’s 40%… of course there’s not enough of these cards you can get to cover a years worth of spend, but insane in the short term.
Fair point... might be low dollars, but definitely high ROI
@@allthehacksROS* 😝
Have a not yet examined the optimizer tool: have you considered adding a solver and giving the user the option to constrain the model by number of cards or number of banks they deal with and then automatically recommend cards based on optimal net return?
I would love to do that, and I’m jumping into ChatGPT right now to see if there’s a way to build it easily (outside of my expertise). But if you know how, I’d love to chat!
@@allthehacks unfortunately not my expertise but there is an add-in for Excel called solver and I've used spreadsheets for fantasy football that give you optimal lineups based on salary and projected scoring, depending on your salary cap available. It's a very similar problem and it should work if you have the right expertise.
LP all the way!
Trying to earn more UR for Hyatt while well over 5/24
Afraid you lost me. I am a visual kinda guy. Any chance of doing a redo using graphics, math etc.?
Let me think about that. Would be a lot of work, but not impossible. Certainly not anytime soon. But I like the idea
I was looking at the Credit Card Optimization Tool (w/ $10 Discount). But it appears the $10 discount no longer works? It just states The coupon is not valid. Anyway to get that discount again?
The launch deal was good through 5/10 but I made another $10 off one for you and anyone else in the YT comments: YTCOMMENTS
@letseatwelllivewell5000 I forgot you need a URL: landing.allthehacks.com/products/card-optimizer-spreadsheet-v-2?promo=YTCOMMENTS
@@allthehacks It is all good Chris. I was able to still get it by restructuring your old promo and removed and added YTCOMMETS instead right after you posted it. Thanks again!
What is your favorite cash back card for no foreigner transaction fee
Robinhood gold card has no foreign transaction fee and is 3% back on everything, so that’d have to be the winner, but it’s not available to everyone yet. If you have $100k to part at BoA then their premium rewards card is a good #2 at 2.625%. If neither of those, then I’d probably go US Bank Altitudes reserve. While it’s only 1% back on everything through their real time rewards, it’s an effective 4.5% on mobile wallet and when I’m traveling I find that I can use mobile wallet almost everywhere.
This is off topic but Wealthfront is a sleeper bank account that no one talks about. I don’t think there’s a higher interest earning checking account.
Totally agree! Missing a few features, but still my primary account now. About to record a while episode going deep on primary bank accounts, so stay tuned :)
5 24 rule is months not years...lol...I know u know. You should do a show with brandon elliot, if that's not the guy you talking bout.
doh! I do know :(
also only applies to personal cards. as long as you're under 5/24 you can go nuts on business cards.
@@allthehacks why the sad face?
@@AngellT depends on the institution, some biz cards do report to credit but not chase/amex