Should you switch from travel rewards cards to cash back?

Since then, I’ve earned and redeemed tens of thousands of dollars in free and inexpensive trips, including short trips around the world, all-inclusive island vacations, and priceless experiences with my kids.

But last year, I decided to cancel most of my travel credit cards and switch to earning cash from my everyday spending. Although I’m not saying that one rewards currency is inherently better than the others, which is why I was disappointed with the points and miles.

I’m tired of analysis paralysis

Last summer, I was diagnosed with ADHD. Soon after, I was introduced to the concept of analysis paralysis. This happens when someone is trying to make a decision with too many options. This happens every time I eat at a restaurant, try to decide on my next tattoo, and — you guessed it — try to decide how to best use my credit card rewards.

As a result, it has collected more than a million points and miles across dozens of rewards programs. Every time I wanted to book a flight, I would strategize how best to use my airline miles, hotel points, and transferable rewards.

While some situations made decisions easy, others were more complicated, and my overthinking and hesitation made the process almost unbearable at times. I got to the point where I was regularly canceling travel plans just to avoid anxiety.

I can also get paralyzed when deciding how to use my cash back rewards, but with far fewer variables, it’s not as bad.

Flexibility now trumps value

When I first joined the travel rewards community, credit card rewards were my only gateway to travel. I quickly learned that travel rewards points and miles can offer great value if you know what you’re doing. But truly maximizing your rewards requires an incredible amount of time and research.

After building my career as a successful freelance writer, I no longer need to rely on points and miles to get where I want to go. I’m also tired of constantly striving for maximum efficiency and productivity in every aspect of my life, including travel.

As a result, I cut back on my travel to focus more on things I had neglected during my working years, including some chronic back pain. But what good are travel rewards if you don’t travel regularly? Some popular rewards programs, including Chase Ultimate Rewards® and Citi ThankYou Rewards, give you a lot of flexibility with non-travel redemptions, but I focused more on American Express Membership Rewards and Capital One Miles, which don’t.

Now that I’ve switched to cash back credit cards, I no longer have to worry about not being able to access my rewards or use them for anything I want.

I save thousands of dollars in annual fees

At one point, I was paying over $3,000 a year in annual fees. A large portion of this cost came from premium travel credit cards, which offered great perks that elevated all aspects of the travel experience for me.

For years, I traveled frequently enough to make that annual fee worth it, but that’s no longer the case. Since most of my cash back credit cards don’t have any annual fees, I no longer have those expensive out-of-pocket costs, nor do I have to justify keeping them year after year.

However, I decided to keep my Capital One Venture

These are the cash back credit cards I use

Even though I’m no longer obsessed with maximizing my rewards on the redemption side, I still want to make sure I’m getting the most out of my daily spending. After reviewing my budget and top spending categories, here are the cards I settled on.

The Blue Cash Preferred® Card from American Express for U.S. gas stations and supermarkets

I had the Blue Cash Preferred® Card from American Express several years ago before I got points and miles. I have two kids, so my monthly supermarket bill is one of my highest spending categories — the card offers a fantastic 6% cash back at US supermarkets on up to $6,000 a year in purchases (then 1%).

I also watch five or six different TV shows and movies at any given time across multiple streaming platforms (did I mention I have ADHD?), so I love the card’s 6% cash back on select US streaming subscriptions and Disney’s $84 annual credit package. As a freelancer who works from home, I don’t drive much, but I like to have a card with a decent rewards rate on gas, and the card offers a 3% discount at gas stations in the US. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout.

Although the card has an upfront annual fee of $0 for the first year, then $95, it’s worth it for my supermarket spending alone.

To view rates and fees for the Blue Cash Preferred® Card from American Express, SeeThis page

Alliant Cashback Visa® Signature Card for non-extra spending

Most of my spending doesn’t qualify for extra rewards with most rewards credit cards, so I wanted to get a good fixed-rate card for those expenses. Although there are plenty of 2% cash back credit cards available, I was willing to go through some hoops to earn 2.5% on up to $10,000 spent monthly with the Alliant Cashback Visa® Signature card.

To get that rate, I had to open a high-rate checking account with the credit union, set up electronic statements, maintain a daily balance of $1,000, and receive at least one electronic direct deposit per month.

To meet these requirements, I moved some money from my emergency fund into the account and parked it, and because I pay myself, I direct a small amount of my paycheck into the account, which I can easily transfer to my main checking account each month. .

Chase Freedom Flex℠ and discover it® Cash Back for rotating denominations

Both Chase Freedom Flex℠ and Discover it® Cash Back offer 5% cash back on up to $1,500 spent in quarterly categories upon activation.

Although these daily spending categories often overlap with the extra rewards I already earn from other cards, I can still take advantage of them when they don’t without a lot of extra work.

I also use Freedom Flex when I eat out to get 3% cash back on food (including eligible restaurants, takeout, and delivery services). While it’s not the best dining rewards rate, I’m willing to accept it to avoid the alternative of having to open another credit card.

Ready meals

I’ve enjoyed countless priceless experiences thanks to travel rewards credit cards, but they no longer provide the same value they once did for me. I still recommend at least one travel credit card for people who travel frequently or need a little extra help to afford a much-needed vacation.

However, if you’re not interested in dealing with the learning curve of maximizing points and miles or want the flexibility to use your rewards however you want, you may find what you’re looking for in a cash back card.

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Please note that card details are accurate as of the date of publication, but are subject to change at any time at the discretion of the issuer. Please contact your card issuer to verify rates, fees and benefits before applying.

Eligibility level and benefits vary by card. Terms, conditions and restrictions apply. Please visit americanexpress.com/benefitsguide for more details. Guaranteed by AMEX Insurance Company.