Cash Back vs Travel Points: Which Should You Choose?
The honest tradeoff
Cash back is worth exactly what it says and takes no thought. Travel points can be worth well over a cent each when transferred to airline and hotel partners, but realizing that value takes research and travel you will actually take. Cardocrat values all points at a flat 1 cent so you can see the floor before any travel upside.
Who should choose cash back
If you rarely travel, do not want to track programs, or just want money back, a flat 2 percent or category cash back card is the rational choice. You never leave value on the table by taking cash.
Who should choose travel points
If you travel a few times a year and will spend an hour learning a couple of transfer sweet spots, travel points stretch much further, especially in business and first class. You can also hedge: earn transferable points, then redeem for cash at 1 cent when you have no trip planned.
Frequently asked questions
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