Premium Travel with CASH BACK?

I appreciate this perspective, it’s not one that is talked about by other content creators. When I stop chasing SUBs I’ll probably go to a cash back setup (but I’ve been chasing subs almost nonstop for 5 years). The x-factor in this argument is the huge SUBs on travel cards vs cash back cards. Good video

Yahoo-yo~you made awesome till next time!Luke's 💫

That’s a very good strategy and more for people redeeming transferable points below 2 CCP for most of their travel. Great video and information mi hermano!🫵

Using the Amex Plat Schwab for access to investing my MR points at 1.1 cents per point. Equates to 5.5% cash back on Plat, and 4.4% cash back on the Gold.

I wish American Express would let you combine the cash back and MR points like other issuers.

I think 5% cards and buying points when they are on sale can out earn and ABSOLUTELY be a strategy that would work for sooooo many people. I could see myself doing this when the SUBs dry up. Thanks for the outside the box video!!! Lets see who listens.

This is exactly the kind of setup I would recommend for most people. The problem for me is that once you get the bug, it’s hard to go back or give up benefits I’ve gotten used to.

I have the abound card but i don't like that i can only get statement credit-- unless they've given better redemption options that I'm not aware of?

Nice video Luke. I echo Philmo78 comments. Buying points in combo with 5% cash back cards is an excellent strategy. I do that with Hilton points

Interesting hybrid setups that would benefit most people for sure - it's easy to forget that a majority of peeps aren't trying to get max pts redemption value/care about CPP. Thanks for the info + video!

This has merit Luke👍🏾 I lean towards a 10-15% CB strategy for the intermittent small treats🙂

Hey Luke, for me, acquiring points will ALWAYS be better than cashback because I can always convert my travel points to cash at 1CPP and I get 5x points on all purchases I make, so "worst case," I get the best of what team cashback gets anyways. With respect to the average person, you're absolutely correct! Unless they were savvy enough to continuously get 2CPP+ on domestic redemptions (or pursuing premium cabins) and/or get 3x points on the majority of their purchases, they would be better off on team cashback. Good educational content for the average user, some might also find better simplicity with cashback.

5% is really an underrated strategy. Its already beating most peoples returns on travel cards (id wager about half the game would be better off with a cashback setup). Using it to buy points is a real way to maximize value. Also, all the hotels and airlines will certainly accept your US dollar points lol.

Thank you again for making actual original content! I’d say if you’re doing one premium card for travel protections it can’t be AmEx due to the round trip exclusion and primary CDW. Sometimes a split booking just works better.

Ink Cash and Amazon Prime (or Business Prime) are great 5% cards year round. Even though you can’t transfer Amazon cash back to partners, earning 5% on Amazon purchases is great. Freedom Flex and OG Freedom are, by their nature, not consistent because you have to deal with quarterly categories.

The Savor One is very tempting for cash back (although just 3%) and still leaves the option to transfer to a Venture family card for transfer partners.

Bengals gonna need some 5% back to pay these WRs

Subbed. This is an…interesting concept and I can see a version working for me. Namely, If you don’t spend particularly much in a particular category, does a 2% card do the trick? I don’t have an outsized spend category.

Just wondering if any 5% cards would work for my medical bills. I just got the new WF Attune for pet food. They have a lot of 4% categories. A lot of folks spoil their pets and spend a ton of $.

Very helpful analysis.

I've got the Citi Trifecta for this exact reason.

Hey Luke, what are your thoughts on the IHG Rewards Premier cc with its 5x on dining and gas stations. I know it only gets you hotel points with IHG and has a $99 AF but that’s negated by the 10,000 yearly points certificates.

Great stuff and a very interesting perspective Luke! That's what's so cool about being in the credit card space is that there are so many ways to skin the cat and pick a strategy that caters to your lifestyle.

I think this is a great late game setup. I may do something like this after I run out of SUBs to churn.

With a family of five, the 5% cards spending caps are too difficult to manage. I do have the Amazon personal card and Amazon business card for those expenses because they don’t have caps.

Fantastic video and way of thinking. I tend to agree that this makes sense for most people, myself included. I keep contemplating draining my UR points and just investing the cash. Especially folks with young ones who can't travel as much, get that 5%, invest it, and when you are more free to travel, you have more funds (thing is you actually need to invest it)!

Honestly, what I want to do one day is just run a 5% cash back on all the things setup for the year and see how I make out. Probably really well. But I love travel cards so that's an addiction I'm trying to break.

5% ink card and cap1 savor are ones I’m looking at

I used to think I was gaming it with 3x and 2x cash back cards 😂 I’m sure I will get back into cash back one day and will use a set up like this

I like hybrid setups where you can be on team travel and still have the option to cash out points if desired. How does one qualify for the Redstone card and other credit union cards? I read the requirements to be a Redstone FCU member and I didn’t think I would qualify.

what's the best place to keep track of point sales?

Thanks for this! I currently run a weird hybrid in my quest for maximum cashback with a pinch of travel. I’m rocking the Redstone, CSR, and Amex Gold for majority of my spend. Honestly that Redstone is so good… it is almost rendering my other cards obsolete. I did get a BILT card yesterday and plan to massage that into my hybrid.

Great quality video Unc Luke. Since you asked, my 5% cards include 3 Bank of America Customized Cash Rewards cards at 5.25% cash back on categories I choose (online shopping, restaurants and gas). I'm a platinum honors member which gives me this rate. I have BOA's Premier card that is unlimited 2.62% cash back (3.5 on travel). Like you I have AAA Daily Advantage and Amazon Prime cards. I want to get another AAA card for my wife to essentially 2x the cap.

I'm actually experimenting with this right now. Honestly, I don't think it's as lucrative as I initially thought, esp. for Hotels.
All the maths coming soon. :)

👍

I’ve always felt like self-discipline can make cash back a good choice to fund my travels. I just have to avoid spending my cash back on other stuff. 😂😂😂

Affinity Federal Credit Union has a Cash Rewards Visa Signature Card that offers 5% cash back at bookstores, office supply stores, and Amazon

This is where most of us should be heading, 1 premium card, and no loyalty to its issuer. I would personally still keep the Hilton Surpass for 6X on grocery + a FNR, which would be well above 5% earning. I would also keep a travel card for shipping, since I don't believe there is anything above 2% cash back, and that is a big category for us.

I now have 3 Citi Custom Cash cards, and the 5% cash back adds up quick!

Hey Luke are MR points taxable when cashed out from the Amex plat Schwab to a Schwab checking account?

I kept watching the video but could never catch it. Are you using a USbank cash+ for entertainment or are you just getting a cash+ like card from your local issuer?

Wait, I want massages and beautiful women feeding me grapes 😅. How many credit cards do you have open right now?

Did you say using cash for travel? I did it for the creators meetup last year 🤫. I typically use my cash back to subsidize my meals while on vacation so cash back cards are still very useful to those of us on team points and miles as well.

What card/bank is the cash+ clone by your local bank? I have season tickets too and do a lot of live entertainment.