I like cash back cards better than travel cards. Here’s why

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Should You Choose Cashback Cards Like Me?

Main points

• Some credit cards offer cash back on purchases, while other cards offer travel rewards.
• I prefer cash back cards because of the flexibility they offer.

Credit cards can be broadly divided into different categories. Some are travel cards that offer bonus rewards for travel purchases and often encourage you to redeem rewards for additional travel. Others are cash back cards that give you cash back on all your purchases.

While I have both travel and cash back cards, I much prefer the ones that offer cash back. Here’s why.

This is a huge advantage of cash back cards over travel cards.

The main reason I choose cash back cards over travel credit cards is the increased flexibility these cards offer.

In most cases, if you have a travel card, you’ll get the best value if you redeem your rewards points or miles for a vacation. To get the most value for your points, you usually have to book through a special portal set up by your credit card company. And you often have to use your reward points or miles for certain travel-related expenses, such as flights or hotels.

Now, when you earn enough rewards, if you’re sure you want to pay rewards for travel, this might not bother you. However, as the last few years of Covid-related uncertainty have shown, it can be difficult to know what direction your life will take and still have enough accumulated to use your points for a vacation in a few months and a few years if you’re willing.

I have two young children, so it can be very difficult to predict what trips we will take and when, because a lot depends on my children’s development at the time and their ability to travel on a plane. without disturbing passengers too much. I don’t want to be tied down to booking trips just to get more out of my credit card, so cash back cards work best.

With a cash back card, I can Choosing If I want to use the money I get from my credit card company to pay for a vacation. But I may choose to do other things with the money (eg, most of the time, I put the money in a brokerage account to save for my future. I’m not willing to give up the flexibility that a cash-back card provides).

What types of cards are right for you?

Knowing which credit card is best can be complicated because it depends on the types of things you use the money for and your preferences for how you want to use the credit card rewards.

If you want to defray the cost of your trip by using credit card points to pay for them, a travel credit card may be a good choice. But if you’re like me and want a wider choice of how you can use rewards without feeling like you have to book trips to maximize their value, a cash back card might be a better choice for you, too.