Statement Credits Are A 'Losing Strategy': The Points Guy

Summary

Brian Kelly, founder of The Points Guy, discusses credit card rewards strategy on Bloomberg Money. He argues that redeeming premium card points for statement credits or gift cards is a losing strategy and that many non-travelers and points hoarders would be better off with cashback cards. He notes points currencies devalue over time and highlights 2% cashback cards, including a Bank of America product earning almost 3% back.

• Brian Kelly says points are more fun but cashback is better for people who do not travel.
• He calls redeeming premium card points for gift cards or statement credits a losing strategy.
• He advises gift card users to get a no-fee 2% cashback card instead of paying for a premium card.
• Points hoarders, including wealthy individuals with millions of points, should consider switching to cash.
• He argues unused points lose value because points currencies devalue over time.
• Bank of America offers a cashback product that can earn almost 3% back.
• Wealthy travelers may want a fancy credit card, but cashback can be better financially.