Generally speaking, there are 2 types of credit card reward systems out there – cash back and travel. Cash back rewards earn you points that can be redeemed for cash. Travel rewards earn you points that can be redeemed for travel. If you like free travel, points are better than cash back almost every time.
Cash back cards pay between 1% and 2% back. So, spending $2,000 a month might earn you about $480 cash back in a year. If you’re lucky, you might see a sign-up bonus of $100 on a cash back card. As a result, the all-in card value for the year is $580.
That might sound good, until you consider that the same level of spending with a rewards card could earn about 30K points plus a sign-on bonus of 50K points. Hence, the all-in card value for the year is 80K points; which could easily get 2 roundtrip flights from NY to LAX plus 2 free hotel nights. The point total would be valued around $1,500. You could get even more value with an international trip!
Get more value out of you credit card rewards by earning travel points. In addition to the hotel and airline cards, programs like Chase Ultimate Rewards, American Express Membership Rewards and Citi ThankYou Points give you more options to redeem points and have several travel transfer partners. These partnerships provide flexibility in how you can use your points and RewardStock will help you maximize them to their full potential.