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When you have multiple credit cards, the decision between points and cash back can be tough. Some people prefer points and miles, others solely want cash back, and some don’t care as long as they get the maximum amount of rewards. I definitely fall in that last bracket.
Points, Miles, or Cash Back
This is the question of all questions when it comes to credit cards. Ultimately, it comes down to the credit card user. I have all three types of cards, as I’m sure most of you do, and I use them all. My preference is to use whatever card earns me the most profit; whether it be in points, miles, or could hard cash (statement credit), I just want my purchase to be as profitable as possible.
There are a few things to take into account, though. For example, not all points and miles are equal. I would much rather have 100 Ultimate Rewards points than 100 Delta SkyMiles. In fact, I would rather have 100 UR points than 150 SkyMiles. That’s because I value UR points at 1.5 cents each, while I value SkyMiles at about 0.8 cents each. That’s pretty standard around the traveling community, however, that may not be the case with you. If you solely fly Delta, then it might be the other way around for you. So, it’s important to take your personal preferences into account.
Here’s a few scenarios:
There is no right or wrong choice when it comes to cash, points, and miles. It all comes down to personal preference and situation.
Wallaby is by far the best way to maximize your rewards. It takes a bit to register all your cards, but it definitely pays off. All you need is a smart phone, which I’m pretty sure most of you have, to check which card you should use at the store you’re shopping at. However, that is not the only way I suggest choosing a card.
I suggest using the following order of operations, to make sure you maximize your rewards:
What is your preference?