Buddy at the credit union told me to skip the rewards card and go with a flat 2% cashback instead. Six months of using it and I've already pocketed $340 with zero annual fees.

I was all about chasing points and miles before, but he showed me the math on how much I was actually losing to category restrictions and caps. Anybody else find that simple cashback beats the fancy perks in the long run?

2 comments

2 Comments

ryanprice20d ago

Pocketed $340" is nice and all, but that's pretty low for someone who actually puts some spending through a card. I get that the math works if you're just buying gas and groceries and not paying attention. But chase cards with category multipliers can easily hit 3-5 percent on dining and travel if you actually use them right. The key is getting a card that matches your real spending habits, not just some generic 2 percent thing. If you only spend a few thousand a year that's fine, but once you hit serious numbers those caps and restrictions don't matter as much because the bonuses stack up way faster. Also, transfer partners for flights and hotels are where the real value is if you're willing to learn the game.

evannelson19d ago

$340 is nothing for real spenders. Transfer partners blow category cards out of the water once you hit five figures.