Why I switched from travel rewards to cash back credit cards—how to know if you should, too

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

But last year, I decided to cancel most of my travel credit cards and switch to earning cash back on my everyday spending. While I’m not saying one rewards currency is inherently better than others, here’s why I became disillusioned with points and miles. 

I’m tired of analysis paralysis

Last summer, I was diagnosed with ADHD. Shortly afterward, I learned about the concept of analysis paralysis. This occurs when someone tries to make a decision with too many choices. It happens every time I eat at a restaurant, try to decide on my next tattoo, and—you guessed it—attempt to determine the best way to use my credit card rewards. 

As a result, I had amassed well over a million points and miles across a dozen rewards programs. Each time I wanted to book a trip, I’d strategize the best way to use my airline miles, hotel points, and transferable rewards. 

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

I can also get paralyzed when deciding how to use my cash-back rewards, but with a lot fewer variables involved, it’s not nearly 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 significant value if you know what you’re doing. But truly maximizing your rewards requires an incredible amount of time and research. 

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

As a result, I’ve cut back on travel to focus more on things that I’ve neglected during my years of hustling, including some chronic back pain. But what good are travel rewards if you’re not regularly traveling? 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 using them for whatever I want.

I’m saving thousands of dollars in annual fees

At one point, I was paying more than $3,000 per year in annual fees. Much of that cost came from premium travel credit cards, which offered impressive perks that elevated every aspect of the travel experience for me. 

For years, I traveled frequently enough to make those annual fees worth it, but that’s no longer the case. With most of my cash-back credit cards charging no annual fee, I no longer have those steep out-of-pocket costs, nor do I have to justify holding onto them year after year. 

That said, I did decide to hold onto my Capital One Venture X Rewards Credit Card for select perks, as well as my hotel credit cards, because it’s fun to take my kids on a quick night away at a local hotel.

These are the cash-back credit cards I’m using

While I’m no longer obsessed with maximizing my rewards on the redemption side, I still want to ensure I’m making the most of my everyday spending. After reviewing my budget and top spending categories, here are the cards I settled on.

Blue Cash Preferred® Card from American Express for streaming, gas stations and at U.S. Supermarkets

I had the Blue Cash Preferred® Card from American Express several years ago before I went all in on points and miles. I have two children, so my monthly supermarket bill is one of my top spending categories—the card offers an impressive 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).

I’m also watching 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 U.S. streaming subscriptions and $84 annual Disney Bundle credit. As a freelancer who works from home, I don’t drive much, but I do like having a card with a decent rewards rate on gas, and the card offers 3% back at U.S. gas stations. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout.

While the card does charge a $0 intro annual fee for the first year, then $95, it’s worth it for my supermarket spending alone.

To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page

Alliant Cashback Visa® Signature Card for non-bonus spending

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

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

Chase Freedom Flex℠ and Discover it® Cash Back for rotating categories

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

While these everyday spending categories often overlap with bonus rewards I’m already getting on other cards, I can still take advantage when they don’t without a lot of extra work. 

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

The takeaway

I’ve enjoyed countless invaluable experiences thanks to travel rewards credit cards, but they no longer offer the same value they once did for me. I’d still recommend at least one travel credit card to 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 you want the flexibility to use your rewards however you want, you may find what you’re looking for in a cash-back card. 

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

Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.