Premium Travel with CASH BACK?

Are Travel Points really the best way to see the world, for everyone? Maybe this set up would work better for you?
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[@TheCreditFrog]

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.

[@LukesPointsandMiles]

I feel like most of us can acquire enough points for a years worth of travel. Keep one premium benefits card and then run the cash back and I’m not sure if you’d notice? Besides all those dollar bills stacking up

[@DecayedMushroom]

Neat video. Love the idea of cashing out AMEX points at a 1.1 CPP with the Platinum CS card to buy IHG points (my favorite hotel brand) when points are on a 100% sale. I’ve done it twice this year. I love AMEX, but I know better than to transfer points to the hotel chains because hotel points aren’t worth but half a cent, usually. This is an excellent way to get around that. I’m happy getting 1 CPP or more in order to fund travel, and with the award flights I usually book I’m getting a way better redemption (2CPP or better). It all evens out for a higher CPP average! I stretch out those IHG points even more with the 4th night free perk with the IHG business card. Thank you for the neat tip! Awesome channel!

[@LukesPointsandMiles]

Thanks for sharing!!

[@PhilMo78]

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.

[@LukesPointsandMiles]

We shall see. Just trying to put some different stuff out there. So many different ways to play this game besides the chase trifecta.

[@traviselectricalservices4532]

Thats exactly the question i was about to ask. Earn cash back and just buy points on sale?

[@LukesPointsandMiles]

@@traviselectricalservices4532 or just buy travel. 5% cash can buy more travel than 3x points in a lot of cases.

[@robertjarrell7276]

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.

[@LukesPointsandMiles]

So many of us really need that one card with all the cool benefits!!!

[@geraldalves9107]

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.

[@LukesPointsandMiles]

I like experimenting with cash back every time I hear folks talk about getting lower value on points.

[@eprohoda]

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

[@LukesPointsandMiles]

Thanks for watching!!

[@flubberghosted2472]

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. 😂😂😂

[@LukesPointsandMiles]

Always a challenge!

[@siumaka]

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.

[@LukesPointsandMiles]

Man that’s a solid set up!!

[@Just_Stevo]

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

[@LukesPointsandMiles]

Citi cards are great earners.

[@bruceedwards3844]

Very helpful analysis.

[@LukesPointsandMiles]

thanks for watching, Bruce!

[@eduardor5899]

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

[@LukesPointsandMiles]

Now you know I’m not your accountant or a tax professional but…. MR points earned as a rebate from spend including the sign up bonus are not taxed as income but Mr points earned through referrals will come with a 1099 from Amex and are taxable.

[@poesyfan28]

Bengals gonna need some 5% back to pay these WRs

[@LukesPointsandMiles]

ha! I said a long time ago, trade one, pay one, and draft one, rinse and repeat. T hasn't had anything close to a pro bowl season ever.

[@ItsMeCJ]

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.

[@LukesPointsandMiles]

I think im up to mid 30's in active cards right now. Might be a couple more cancelled this year.

[@ItsMeCJ]

@@LukesPointsandMiles Jeeez Luke! Thirty+?!!

[@LukesPointsandMiles]

@@ItsMeCJ mid 30’s. I’ve gotten over 30 in the last 3 years

[@LukesPointsandMiles]

ooops just got approved for another one!

[@ItsMeCJ]

@@LukesPointsandMiles I can barely keep up with the 11 or 12 I have as it is (see, I don’t even remember the exact number) 🤣

[@DREAMPIECE]

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.

[@DugrozReports]

Can you confirm if Redstone codes Walmart at 3x? In person only? Online too? Both? Much thanks.

[@rigsb8127]

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

[@LukesPointsandMiles]

There are actually 100’s of banks that use the elan financial system. Mine is with a bank called Park National.

[@tbark87]

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.

[@LukesPointsandMiles]

Yeah I agree. But you can purchase the Amex rental car insurance but I like the VX the best out of all of them

[@elliottnixon-wq6sp]

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.

[@LukesPointsandMiles]

See I think that’s when the C1 VX shines. I can function as the travel and the non category catch all.

[@vickiarnold7300]

Great job on KZbin ❤

[@LukesPointsandMiles]

Thanks for watching, Vickie!!

[@TheDjim49]

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

[@LukesPointsandMiles]

This is true. For me almost all the big subs are gone for now.

[@tbark87]

It’s not talked about by others more or less because there’s no benefit for him to do it. Not a ton of referral bonuses on obscure credit union cash back cards.

[@LukesPointsandMiles]

@@tbark87 true but they’re great cards!!!

[@tbark87]

@@LukesPointsandMiles it was meant more as a compliment than it sounded. You’re recommending cards that are good even if there’s no direct payback for you.

[@LukesPointsandMiles]

@@tbark87 yes sir. I actually agree with you. It’s obvious issuers with great referral programs get way more shine

[@DugrozReports]

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. :)

[@LukesPointsandMiles]

I’ll be watching!!

[@Andrew_ryan_]

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)!

[@LukesPointsandMiles]

Yeah even a good HYSA right now can be a great idea.

[@Pahhd-d8t]

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.

[@LukesPointsandMiles]

Exactly! Thanks for watching

[@thejokerspeaks]

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.

[@LukesPointsandMiles]

Yeah I can’t think of any cash back cards for shipping.

[@jimmyjames6492]

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!

[@LukesPointsandMiles]

Thanks for watching Jimmy!!!!

[@TheArtistFKApingaso3687]

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

[@LukesPointsandMiles]

That would be interesting.

[@johnkim163]

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 $.

[@LukesPointsandMiles]

the only thing i can see is something like the Chase Ink Cash that can purchase fee free Visa Debit Cards. as far as medical being a category i dont know of anything.

[@sheilaa1333]

Barclays has an AARP card which gets 2% on medical expenses (and 3% on gas and drug stores). You don’t have to be over 50 either. 😁

[@LukesPointsandMiles]

@@sheilaa1333 I wouldn’t recommend a card for 2% on medical bills though when tons of cards get 2% on everything.

[@paulstein916]

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.

[@LukesPointsandMiles]

Most of them have requirements or you need to donate to something like $5 to a financial freedom nonprofit. Something like that. There are hoops but their easy

[@bctsteve]

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.

[@LukesPointsandMiles]

I can understand that but there are 5% cash back cards that don’t have caps.

[@Xavier_ID.]

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

[@LukesPointsandMiles]

Yeah since I travel quite a bit I don’t bother with any cash back cards under 5%

[@joephillips5594]

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

[@LukesPointsandMiles]

Definitely get the subs first!!

[@JohnnyHubbsFinance]

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

[@LukesPointsandMiles]

I love the multi CCC strategy!!

[@andrewbeach1685]

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

[@LukesPointsandMiles]

Both are solid cards. I don’t like the savor for cash back but I like it for capital one miles.

[@clownworldresidentii5184]

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

[@LukesPointsandMiles]

Blogs and Google

[@JesseMeacham-n6v]

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.

[@LukesPointsandMiles]

You’re getting 5x on all purchases? That’s awesome

[@MH_6160]

Yeah I would like to hear your set up that gets 5x on ALL purchases.

[@outrunsynthwave9425]

My guess would be 5x back on gift cards purchased with the ink cash office supply multipliers

[@LukesPointsandMiles]

@@outrunsynthwave9425 that's not a bad option for at least some of your spend

[@davewwjd]

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?

[@LukesPointsandMiles]

Yeah the statement credit sucks but how I do it is when the credit hits I transfer that cash back into the separate account

[@arteephact]

Cash is fungible....the $XX credit you receive on the statement - you just put that much into the "Travel Account" instead of sending it to Abound. Net result is the same.

[@LukesPointsandMiles]

exactly!

[@ProfessorX-YouTube]

@@LukesPointsandMilesThis is what I do as well when I get statement credit on certain cards. Honestly, I don’t mind it at all.

[@nubianpwr]

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

[@LukesPointsandMiles]

Yeah that makes sense!

[@outrunsynthwave9425]

Say more please. 10-15x CB? I’m listening!

[@LukesPointsandMiles]

@@outrunsynthwave9425 i think he means 10-15% of his spend earns cash back while 85-90% earns points.

[@outrunsynthwave9425]

@@LukesPointsandMiles 🤦 now I get it. I have smooth brain 🧠

[@caribdude8151]

👍

[@LukesPointsandMiles]

Thanks for watching, dude