In the world of credit card rewards, there are countless strategies depending on your goals, lifestyle, and spending habits. One question I get asked a lot on my channel is, “Why don’t you use cashback credit cards?” It’s a fair question—especially when I spend a lot of time discussing transferable points cards, airline cards, and hotel cards from issuers like Chase, Amex, Citi, Capital One, and even Wells Fargo. But rarely do I bring up cashback cards. Today, I want to share why that is.
The short answer? Cashback simply doesn’t align with my goals. I’m a maximizer. That means I’m not just trying to save $50 or $100 here and there—I’m aiming to extract maximum value from my spending. For example, I’d much rather use points to book a $10,000 first-class flight for a fraction of the cost than get 2% cash back on that same purchase.
Most of my spending is focused on cards that earn transferable points or airline miles, particularly Citi ThankYou Points that I convert to American Airlines miles. I personally value those miles at over six cents each—making my return on spend much higher than most cashback cards can offer. Even 5% back on the Amazon Prime card (which I do use!) doesn’t compare to the value I get from my miles strategy.
Yes, cashback cards like those from Bank of America, U.S. Bank, or credit unions can be strong earners. And for many people, especially those who prefer simplicity or don’t travel much, they can be an excellent fit. Cashback can help cover everyday expenses like food, tolls, or even parts of your travel costs. But for me, they just don’t give the kind of outsized value that makes the game fun and exciting.
Another factor is limited spend. Even though I have a relatively high monthly spend, my budget is still finite. If I’m putting money on a cashback card, that’s money I’m not putting toward a signup bonus worth 100,000+ points—or toward a 5x earning category on a card that converts to valuable airline miles. The opportunity cost is just too high.
And finally, let’s be honest: points are fun. Watching those balances grow into the thousands and planning luxury trips with them is a huge part of the enjoyment. Cashback may be practical, but points are exciting—and this is a hobby as much as it is a strategy.
That said, there’s no one-size-fits-all answer. Whether you prefer cashback, airline miles, hotel points, or a hybrid approach, the beauty of the points and miles game is that you can tailor it to your own life. Don’t do what I do just because it works for me. Do what works for you.
So—do you prefer cashback or points? Why? Drop a comment and let me know. And if you enjoyed this breakdown, hit that like button and subscribe for more rewards talk next time!
The Rewards Master
The Rewards Master 