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Cashback or Rewards Credit Cards - Which Should I Choose
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If you are researching credit cards, you have probably seen cards offering rewards in two ways: cash back or flexible rewards points. Cash-back cards make it simple to understand how you earn rewards, but credit cards earning flexible points such as American Express Membership Rewards or Chase Ultimate Rewards may be tempting you with their promises of aspirational travel rewards.
Click on this link to know what should I choose cashback or rewards credit cards: https://canvas.instructure.com/eportfolios/1076150/Home/Cashback_or_Rewards_Credit_Cards__Which_Should_I_Choose
How do you decide whether to pursue cash-back rewards or flexible points? What are the merits of each? Are there any pitfalls? How do you make this call?
There is no one right answer to this question. The best path for you will depend on your situation, your spending patterns, what kinds of rewards you value, and to some extent the amount of effort you are willing to put into learning how to use rewards. There’s no such thing as the best credit card for everyone, but understanding as much as you can about what you want and how you can achieve that will get you on the right path.
What are Flexible Points
Before getting started, let’s be clear about what we mean by flexible points. Flexible points programs are rewards programs that allow a variety of compelling redemption options including transferring points to airlines, hotels, and other programs. Usually, transferable points currencies are programs run by banks and associated with rewards credit cards. In general, transferable points programs focus on travel rewards.
Some credit cards earn points that are only redeemable for cashback or a limited number of options at a fixed cash value; we’re not talking about those. Also, while some hotel and airline programs allow you to transfer points to other travel providers, generally these aren’t considered flexible points when the point transfer options only offer very poor redemption values.
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