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

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#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.

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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

Overall Spend

Higher Cash Back in 1-2 Categories

Rotating Categories

Dining/Restaurants

Travel

Grocery/Supermarkets

Internet/Cable/Phone Bills

Gas

Abound Visa® Platinum Card

Entertainment/Streaming

Drugstores

Rent

Bilt Mastercard®

Office Supplies

Chase Ink Business Cash® Credit Card

Amazon/Whole Foods

Amazon Prime Rewards Visa Card

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.