CHARGE CARD 101: Cashback vs. Benefits Credit Cards (Comparing Money Back vs. Travel Benefits)

Flower
Flower


MONEY IS KING! Or so they state … Let’s compare MONEY BACK vs. TRAVEL BENEFITS charge card (points and miles) to see who the real king actually is! Click “Program More” to see Advertisement Disclosure.

VIEW AMEX CARD USES!
http://amex.markscreditcards.com

SECURE FREE STOCKS FROM WEBULL when you open an account & deposit $100:
http://webull.markscreditcards.com

RAKUTEN – Earn Money Back!
http://rakuten.markscreditcards.com

THE TRUTH
Money and money back charge card=KING for whatever OTHER THAN TRAVEL.
Travel benefits points and miles=KING for TRAVEL.

FOR THIS VIDEO
We are comparing points & miles VS. money back for TRAVEL.
We are speaking IN GENERAL (i.e. most of the time).
Exceptions do exist.

4 KINDS OF TRAVEL BENEFITS POINTS
1. AIRLINE COMPANY MILES: BEST worth when redeeming with 1 airline company and/or its airline company partners. Example: United MileagePlus

2. HOTEL POINTS: BEST worth when redeeming with 1 hotel business. Example: Marriott Bonvoy

3. VERSATILE POINTS: EQUIVALENT worth when redeeming for any flight, hotel, rental cars and truck, cruise, and so on. Example: Wells Fargo GoFar Benefits

4. TRANSFERRABLE POINTS: BEST worth when transforming FROM bank indicate partner airline company miles or partner hotel points. Example: Chase Ultimate Benefits.

KEEP IN MIND: Some points are Flexible & Transferrable (Amex, Capital One, Chase, Citi)

VALUE OF TRAVEL BENEFITS POINTS & MILES
– All points are NOT equivalent.
– All miles are NOT equivalent.
– Typically, some points deserve ABOUT 1 cents each ($ 0.01). Some points deserve LESS than 1 cents. Other points deserve MORE than 1 cents.

WHEN YOU REDEEM TRAVEL BENEFITS POINTS & MILES
You can get MORE, LESS, or EQUIVALENT worth compared to what they deserve (typically). That’s since costs for flights, hotels, and so on. MODIFICATION based upon area, economy, kind of room/class of service, seasonality, need and more.

TRAVEL BENEFITS EXAMPLES: Flexible & Transferrable Points Programs
– Chase Ultimate Benefits points|Typical worth=2.0 cents each for travel
– Citi ThankYou Points|Typical worth=1.7 cents each for travel
– American Express Subscription Benefits Points|Typical worth=2.0 cents each for travel
– Capital One Endeavor Miles|Typical worth=1.4 cents each for travel

TRAVEL BENEFITS EXAMPLES: Airline Company Miles
– American Airlines AAdvantage|Typical worth=1.4 cents
– Delta SkyMiles|Typical worth=1.2 cents
– Southwest Rapid Benefits|Typical worth=1.5 cents
– United MileagePlus|Typical worth=1.3 cents

TRAVEL BENEFITS EXAMPLES: Hotel Points
– Marriott Bonvoy points|Typical worth=0.8 cents
– Hilton Formality points|Typical worth=0.6 cents
– IHG Benefits Club points|Typical worth=0.5 cents
– World of Hyatt points|Typical worth=1.7 cents

VIEW PRESENT POINT & MILE EVALUATIONS
The Points Man
https://thepointsguy.com/guide/monthly-valuations

2 SIDES TO THE STORY
– EARNING: Cashback vs. points & miles
– REDEEMING: Cashback vs. points & miles

2 IDEAS TO UNDERSTAND
1. Compute Charge Card Return On Invest
( Translation: What is the cash-back equivalent for cards that make points?)
This is the MAKING side of the story.

2. Determine Point Redemption Worth
( Translation: If I redeem points for Hotel A or Flight B, what worth per point do I get compared to the average?
This is the REDEEMING side of the story.

PRINCIPLE 1: COMPUTE CHARGE CARD RETURN ON SPEND
( Classification Multiplier) x (Avg. Point Worth) x 100=% Return On Invest

PRINCIPLE 2: DETERMINE POINT REDEMPTION WORTH
( Money Rate of flight, hotel, and so on) ÷ (# Points required) x 100=Worth Per Point

Keep in mind: Consist of taxes & charges in the Money Rate IF your points or miles cover them. Otherwise leave out.

IN GENERAL
To win with points & miles for travel …

1. MAKE points/miles when the Return On Invest is HIGHER than what a cash-back card might offer you for the exact same purchase.

2. REDEEM points/miles when their Point Redemption Worth is AT or ABOVE their typical worth.

3. CONSERVE points/miles when their Point Redemption Worth is LISTED BELOW the average.

Hope this assisted you comprehend how to utilize charge card benefit points efficiently so you can take a trip the world totally free (or near it)!:D

And naturally, when you’re not taking a trip, it’s okay to utilize money back;–RRB-

Disclosure: This website becomes part of an affiliate sales network and gets settlement for sending out traffic to partner websites, such as CreditCards.com. This settlement might affect how and where links appear on this website. This website does not consist of all monetary business or all offered monetary deals. The material in this video is precise since the publishing date. A few of the deals pointed out might no longer be readily available. Mark Reese is not a monetary consultant.

#creditcards #creditcards101 #travelrewards.