@medcinmn wrote:How can a 1-2% points card be worth more than a cashback that gets 2,3,4,5 or 6% cashback on most everything purchased?
To be fair some cards give that many points too; however, the real advantage is that points sometimes can be redeemed for more than 1:1 value - the classic cases are Amex and Chase with their airline and hotel partners.
Also there's few cashback cards higher than a flat default spend at 2% (JCB Makurai is the only one I know of), and since most of them are at 1% with the 5-6% being in a specific category (Amex BCP as an example) for heavier spenders who travel it often works out far better.
Am certain there are others who can give much greater details, but in general it just matters what your spending habits are, and as importantly what the rewards package offers you as an individual in terms of monetary return.
It depends on what you can cash the points in for. For example with the AMEX SPG, you get points at Starwood properties worldwide. A room at the St. Regis in New York will cost $795 per night or 30,000 points for an equivalent of 2.65 cents per point. If you qualify for the maximum reward you would get 5X points for your spending at SPG properties or 13.3% of your spending. SPG points can also be transfered to other partners. Not all are like that, and it would have to match your spending and your needs. Everyone is different and what is good for one is not good for another. That's why there are so many different reward cards. You just have to do the research and find what fits you best.
