Best Buy credit card from Citibank is offering a signup bonus of 15% back in Rewards on your first day of purchases. Offer ends 9/3/24.
Our Verdict
Standard offer is 10% back, it’s now up to 15% (apparently unlimited earn). The card often has spend bonuses throughout the year which is another reason some people find it worth getting/keeping.
The card regularly offers 5% cash back as rewards cash to Best Buy and offers a points banking benefit. Every quarter you get to choose your 5% cash back category – travel, wholesale, utilities, home improvement, grocery, dining, gas, clothing with a $75 max.
Qatar Airways offers two branded credit cards for U.S. consumers. Launched by the airline in May 2024 in partnership with financial technology company Cardless and issued by First Electronic Bank, the cards offer sign-up bonuses, rewards on purchases and an accelerated path to status in Qatar Airways Privilege Club (the airline’s frequent flyer program) and the Oneworld alliance (of which the airline is a member).
One card is more feature-rich than the other, and the difference is evident in an annual fee that rivals what you’d pay for the best premium travel rewards credit cards. For that price, other cards may have more to offer, especially if you’d prefer more flexibility with your rewards.
Here are five things to know about the Qatar Airways credit cards.
1. There are two Qatar Airways credit cards
You can choose between the Qatar Airways Privilege Club Visa Signature Credit Card, with a $99 annual fee, and the Qatar Airways Privilege Club Visa Infinite Credit Card, with a $499 annual fee.
Here’s how the cards compare:
Qatar Airways Privilege Club Visa Infinite Credit Card
Qatar Airways Privilege Club Visa Signature Credit Card
Annual fee
Sign-up bonus
Earn up to 50,000 Avios, including 25,000 Avios after the first transaction and 25,000 Avios after spending $5,000 in the first 90 days.
Earn up to 40,000 Avios, including 20,000 Avios after the first transaction and 20,000 Avios after spending $3,000 in the first 90 days.
Loyalty program points
Earn 150 Qpoints after spending $5,000 in the first 90 days.
Earn 2 Qpoints for every 1,500 Avios earned.
Earn 2 Qpoints for every 2,000 Avios earned.
Earnings rates
5 Avios per $1 spent on Qatar Airways.
3 Avios per $1 spent at restaurants.
1 Avios per $1 spent on all other qualifying purchases.
4 Avios per $1 spent on Qatar Airways.
2 Avios per $1 spent at restaurants.
1 Avios per $1 spent on all other qualifying purchases.
Other perks
2. The cards earn Avios
The cards earn rewards in the form of “Avios,” which you can use to book award travel on Qatar Airways. Avios are also the rewards currency for several other airlines, including British Airways, Iberia, Aer Lingus and Finnair; you can transfer Avios among those airlines’ frequent flyer programs, although the value you get per point will differ.
Because Qatar Airways is part of the Oneworld alliance, you can also redeem Avios toward flights on partner airlines such as American Airlines, Alaska Airlines, Qantas and more.
3. You get an accelerated path to status
With the Qatar Airways Privilege Club Visa Signature Credit Card, you automatically get Silver status in Qatar Airways’ Privilege Club for the first year you have the card. This grants you a 25% bonus on rewards earnings for eligible flights; priority standby, check-in and boarding; a 20% discount on the cost of seat selection; an allowance for extra baggage; and lounge access. You’ll also get Ruby status in the Oneworld alliance, which gets you business class priority check-in, preferred seating and priority on waitlists and standby.
The Qatar Airways Privilege Club Visa Infinite Credit Card grants you Privilege Club Gold status for the first year, which comes with a 75% bonus on rewards earnings for eligible flights; priority standby, check-in and boarding; preferred seats; an allowance for even heavier extra baggage; lounge access; credits you can redeem for upgrades; a “meet and assist” service; and a discount on online redemptions. You’ll also get Sapphire status on Oneworld, which provides the benefits of Ruby plus access to business class lounges, priority boarding, a free extra checked bag and priority baggage handling.
Note that the automatic elite status lasts for only the first year. To keep (or increase) your status, you need to earn “Qpoints,” which you can do by flying Qatar Airways or any Oneworld member airline. Using the Qatar Airways credit cards can also earn Qpoints — you get 2 Qpoints for every 1,500 to 2,000 Avios you earn with credit card spending, depending on the card.
4. One card’s annual fee is extra pricey
The “Infinite” version charges a sky-high $499 annual fee, which is certainly something to take into consideration when considering these two cards. For the extra cost, you get a larger sign-up bonus, higher ongoing rewards rates, a higher rate at which you earn Qpoints, a higher status tier and Visa Infinite benefits.
5. Other premium travel cards may be a better option
If you’re considering the more expensive Qatar Airways Privilege Club Visa Infinite Credit Card, note that other premium travel cards allow you to transfer points to airline partners, which includes some of the Avios airlines mentioned above.
With the Chase Sapphire Reserve®, which has a $550 annual fee, you can transfer Chase Ultimate Rewards points to airlines including British Airways, Aer Lingus and Iberia. Plus, you get a $300 annual travel credit, a statement credit toward TSA PreCheck or Global entry, airport lounge access and more.
Full list of Chase transfer partners
Aer Lingus (1:1 ratio).
Air Canada (1:1 ratio).
Air France-KLM (1:1 ratio).
British Airways (1:1 ratio).
Emirates (1:1 ratio).
Iberia (1:1 ratio).
JetBlue (1:1 ratio).
Singapore (1:1 ratio).
Southwest (1:1 ratio).
United (1:1 ratio).
Virgin Atlantic (1:1 ratio).
Hyatt (1:1 ratio).
InterContinental Hotels Group (1:1 ratio).
Marriott (1:1 ratio).
The Capital One Venture X Rewards Credit Card includes both British Airways and Finnair among its transfer partners. The $395 annual fee can be effectively wiped out by the card’s many perks — a $300 annual travel credit for bookings made through Capital One Travel, a statement credit toward TSA PreCheck or Global Entry, airport lounge access and a 10,000-mile anniversary bonus.
Qatar Airways offers two branded credit cards for U.S. consumers. Launched by the airline in May 2024 in partnership with financial technology company Cardless and issued by First Electronic Bank, the cards offer sign-up bonuses, rewards on purchases and an accelerated path to status in Qatar Airways Privilege Club (the airline’s frequent flyer program) and the Oneworld alliance (of which the airline is a member).
One card is more feature-rich than the other, and the difference is evident in an annual fee that rivals what you’d pay for the best premium travel rewards credit cards. For that price, other cards may have more to offer, especially if you’d prefer more flexibility with your rewards.
Here are five things to know about the Qatar Airways credit cards.
1. There are two Qatar Airways credit cards
You can choose between the Qatar Airways Privilege Club Visa Signature Credit Card, with a $99 annual fee, and the Qatar Airways Privilege Club Visa Infinite Credit Card, with a $499 annual fee.
Here’s how the cards compare:
Qatar Airways Privilege Club Visa Infinite Credit Card
Qatar Airways Privilege Club Visa Signature Credit Card
Annual fee
Sign-up bonus
Earn up to 50,000 Avios, including 25,000 Avios after the first transaction and 25,000 Avios after spending $5,000 in the first 90 days.
Earn up to 40,000 Avios, including 20,000 Avios after the first transaction and 20,000 Avios after spending $3,000 in the first 90 days.
Loyalty program points
Earn 150 Qpoints after spending $5,000 in the first 90 days.
Earn 2 Qpoints for every 1,500 Avios earned.
Earn 2 Qpoints for every 2,000 Avios earned.
Earnings rates
5 Avios per $1 spent on Qatar Airways.
3 Avios per $1 spent at restaurants.
1 Avios per $1 spent on all other qualifying purchases.
4 Avios per $1 spent on Qatar Airways.
2 Avios per $1 spent at restaurants.
1 Avios per $1 spent on all other qualifying purchases.
Other perks
2. The cards earn Avios
The cards earn rewards in the form of “Avios,” which you can use to book award travel on Qatar Airways. Avios are also the rewards currency for several other airlines, including British Airways, Iberia, Aer Lingus and Finnair; you can transfer Avios among those airlines’ frequent flyer programs, although the value you get per point will differ.
Because Qatar Airways is part of the Oneworld alliance, you can also redeem Avios toward flights on partner airlines such as American Airlines, Alaska Airlines, Qantas and more.
3. You get an accelerated path to status
With the Qatar Airways Privilege Club Visa Signature Credit Card, you automatically get Silver status in Qatar Airways’ Privilege Club for the first year you have the card. This grants you a 25% bonus on rewards earnings for eligible flights; priority standby, check-in and boarding; a 20% discount on the cost of seat selection; an allowance for extra baggage; and lounge access. You’ll also get Ruby status in the Oneworld alliance, which gets you business class priority check-in, preferred seating and priority on waitlists and standby.
The Qatar Airways Privilege Club Visa Infinite Credit Card grants you Privilege Club Gold status for the first year, which comes with a 75% bonus on rewards earnings for eligible flights; priority standby, check-in and boarding; preferred seats; an allowance for even heavier extra baggage; lounge access; credits you can redeem for upgrades; a “meet and assist” service; and a discount on online redemptions. You’ll also get Sapphire status on Oneworld, which provides the benefits of Ruby plus access to business class lounges, priority boarding, a free extra checked bag and priority baggage handling.
Note that the automatic elite status lasts for only the first year. To keep (or increase) your status, you need to earn “Qpoints,” which you can do by flying Qatar Airways or any Oneworld member airline. Using the Qatar Airways credit cards can also earn Qpoints — you get 2 Qpoints for every 1,500 to 2,000 Avios you earn with credit card spending, depending on the card.
4. One card’s annual fee is extra pricey
The “Infinite” version charges a sky-high $499 annual fee, which is certainly something to take into consideration when considering these two cards. For the extra cost, you get a larger sign-up bonus, higher ongoing rewards rates, a higher rate at which you earn Qpoints, a higher status tier and Visa Infinite benefits.
5. Other premium travel cards may be a better option
If you’re considering the more expensive Qatar Airways Privilege Club Visa Infinite Credit Card, note that other premium travel cards allow you to transfer points to airline partners, which includes some of the Avios airlines mentioned above.
With the Chase Sapphire Reserve®, which has a $550 annual fee, you can transfer Chase Ultimate Rewards points to airlines including British Airways, Aer Lingus and Iberia. Plus, you get a $300 annual travel credit, a statement credit toward TSA PreCheck or Global entry, airport lounge access and more.
Full list of Chase transfer partners
Aer Lingus (1:1 ratio).
Air Canada (1:1 ratio).
Air France-KLM (1:1 ratio).
British Airways (1:1 ratio).
Emirates (1:1 ratio).
Iberia (1:1 ratio).
JetBlue (1:1 ratio).
Singapore (1:1 ratio).
Southwest (1:1 ratio).
United (1:1 ratio).
Virgin Atlantic (1:1 ratio).
Hyatt (1:1 ratio).
InterContinental Hotels Group (1:1 ratio).
Marriott (1:1 ratio).
The Capital One Venture X Rewards Credit Card includes both British Airways and Finnair among its transfer partners. The $395 annual fee can be effectively wiped out by the card’s many perks — a $300 annual travel credit for bookings made through Capital One Travel, a statement credit toward TSA PreCheck or Global Entry, airport lounge access and a 10,000-mile anniversary bonus.
Right now, nine states do not charge state income taxes, which means residents in those states don’t need to file a state-level tax return. While an obvious benefit of that is a reduction in their annual tax liability, are there also drawbacks to living in a state without income taxes?
Here, learn the pros and cons of no state income tax. This intel can help you determine if living in a state with no income tax is better for you.
Key Points
• Living in states without income tax can significantly reduce an individual’s overall tax burden, benefiting primarily high-income earners during tax season.
• Higher sales and property taxes often compensate for the lack of income tax, potentially placing a heavier burden on lower-income residents in these states.
• Tax filing becomes simpler for residents in states without income tax, eliminating the need for state tax returns and associated expenses for tax preparation.
• The absence of income tax can lead to reduced funding for essential public services, such as education and infrastructure, impacting the quality of life.
• Although no income tax may attract new residents, the overall cost of living in these states can still be relatively high, complicating financial advantages.
Which States Have Zero State Income Tax?
Currently, nine states do not have state income tax on earned income:
• Alaska
• Florida
• Nevada
• New Hampshire*
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming
*New Hampshire currently charges state taxes on interest and dividends but not on income, but it is set to phase this out after 2026, as Tennessee has recently done.
Get up to $300 when you bank with SoFi.
Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!
Recommended: Earned vs. Unearned Income on Taxes
What Are the Pros and Cons of Having No State Income Tax?
At first blush, having no state income tax sounds like a win for Americans — and for many high-earners, it might be. However, there are also downsides to living in a state with no income taxes. Here’s a closer look.
Pro: You’ll Spend Less Money on Income Taxes Overall
While nearly everyone must file federal taxes, residents in states without income taxes will benefit from a lower overall tax bill each tax season. This can be a boost to one’s financial health.
Con: You’ll Likely Spend More on Sales and Property Taxes
Just because states don’t charge income taxes doesn’t mean they’re not getting revenue through different types of taxes. States without income taxes sometimes have higher sales and property taxes, for example.
Tennessee, Washington, Nevada, and Texas are all in the top 20 states with the highest combined state and local sales tax. New Hampshire, Texas, and Florida all have property taxes higher than the national average — with the former two in the top 10 states overall.
An added con to this: Unlike income taxes, which get progressively higher based on your income level and resulting tax bracket, sales taxes are the same no matter how much you make. That means lower-income taxpayers shoulder a heavier tax burden in states with no income taxes, according to the Institute on Taxation and Economic Policy.
Pro: Tax Filing Is Easier
If you live in a state without income tax, filing can be a breeze. You’ll have one less tax filing deadline to worry about.
Those who reside where state tax is collected, however, may need to invest in professional tax software or an accountant to handle their state taxes. This is of course an added expense — and creates extra steps in the tax filing process.
Con: There’s Less in the Budget for Infrastructure and Education
States use income taxes to fund projects like improving infrastructure and investing in education. Without income taxes, there could be less in the budget for such investments.
For instance, Nevada, Florida, Tennessee, and South Dakota are all among the top 10 states that spend the least amount of money per K-12 student, per a report from the Education Data Initiative. The common thread? These four states don’t have income taxes.
Pro: Having No Taxes Can Attract People to Move to the State
A lack of state income taxes may be a selling point for many people looking to move, whether they are looking for a more affordable lifestyle, a welcoming state to retire in, or to be closer to friends and family.
Why does this matter? An influx of residents to a state can be a boon to the local economy.
Con: Cost of Living May Be Higher
Though it’s not the case across all nine states without income taxes, the cost of living could be higher. Four out of the nine states were among the 20 most expensive states to live in last year: Alaska, New Hampshire, Washington, and Florida.
Now, here’s how the pluses and minuses stack up in chart form:
Pros
Cons
Less money spent on income taxes
Potentially higher sales and property taxes
Easier tax filing
Potentially lower infrastructure and education spending
Potential state population growth
Potentially higher cost of living
Why Do Some States Have Zero State Income Taxes?
Some states may choose to enact a no-state-income-tax policy to encourage Americans to move there from other states and thus boost their economy. IRS and Census data backs up this theory.
It may also reflect local political sentiment: Conservative politics tend to favor lowering taxes, while progressive politics often prioritize the social programs that can be achieved through higher taxes.
Recommended: Tips on Saving Money Daily
Do States With No Income Tax Save Residents Money?
States with no income taxes save residents money — on their income taxes. However, many states without income taxes can be expensive in other ways. They might have a higher sales tax, higher property taxes, and/or a higher cost of living.
Before deciding on a move to a state without income taxes, it’s a good idea to view the whole picture by researching sales and property tax rates and overall cost of living.
Recommended: Tax-Friendly States that Don’t Tax Pensions and Social Security Income
Is Living in a State With No Income Tax Better?
Some taxpayers may say that living in a state with no income tax is better, but others might not. In general, high-income earners benefit more from a lack of state income taxes, since they may enjoy reduced taxes. Low-income earners, however, may actually shoulder more of the tax burden when states generate revenue from sales tax.
Taxpayers should also consider how much they value lower taxes versus more social programs and investments in things like infrastructure and education. Each individual will have their own opinion.
The Takeaway
States without income taxes may save you a lot of money when it’s time to file taxes, but there may be hidden costs of living in such states, like higher sales and property taxes. Before moving, it’s important to consider the full picture to better understand the potential impact on your finances.
Regardless of where you live, it can be a wise money move to take advantage of a high-yield bank account to grow your savings. When you open a SoFi Checking and Savings account, you’ll enjoy a competitive annual percentage yield (APY) on deposit and pay no account fees, both of which can help your cash grow more quickly. Plus, there’s the convenience factor: You’ll spend and save in one place, and qualifying accounts can access their direct deposit paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.
FAQ
Are other taxes higher in states with no income tax?
Though it varies, it is common for states without income taxes to make up for that lack of revenue through other forms of taxes, primarily sales and property taxes.
Are food costs more in states with no income tax?
Food costs contribute to a state’s total cost of living. In 2022, four of the 20 most expensive states to live in had no income taxes. While that doesn’t inherently mean food costs are higher in such states, it may validate that a disproportionate number of states with no income tax have higher costs of living.
Is living in a state with no income tax better for low- or high-income taxpayers?
High-income taxpayers benefit more from living in states with no income taxes. The more money you make, the higher percentage of your income you must pay in taxes, so high-earners will likely save more.
In addition, states with no income tax may see less spending on education, which can affect the quality of learning for students. High-income earners can probably more easily afford private schools for their children; such schools do not rely on taxes to operate. Low-income earners may not be able to afford private schools.
Photo credit: iStock/mihailomilovanovic
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Remember those old internet ads promising one “weird trick” to improve your fitness forever? I never clicked on those, but I wonder if the trick was “exercise often.” Because that would work.
Similarly, I’m asked all the time about the best way to use credit card reward points — specifically, points issued by banks designed to cover a variety of travel expenses. Three-quarters of credit card accounts offered rewards in 2022, according to the Consumer Financial Protection Bureau, and many come with flexible redemption options. The answer is surprisingly simple: Learn how to transfer those points to travel loyalty programs.
Transferring points isn’t a particularly easy or obvious option. But the value of the points from popular issuer loyalty programs — such as Chase Ultimate Rewards®, American Express Membership Rewards and Capital One miles — can vary dramatically depending on how they’re used. That’s why NerdWallet offers both a “baseline value” and “maximized value” in our point valuations.
The baseline value is how valuable points are when used for booking travel directly through the issuer’s rewards portal, such as Chase Travel℠ or Capital One Travel. The maximized value relates to how much these points are worth when transferred to their best partner program. For example, the baseline value of American Express Membership Rewards is 1 cent, while the maximized value (when transferred to the best partners) is 2 cents.
$99 for a $6,205 luxury resort?!
See how this family saved $$$$ thanks to 1 credit card and how you could, too. (Limited time bonus now!)
Don’t be deterred
Most credit card reward programs make it easy to use your points for their baseline value. They usually show the cost of using points right next to the cash price when searching for travel on their booking platforms.
To be clear: There’s nothing wrong with using your points this way. Sometimes it’s actually the most valuable redemption option. And you generally get benefits like earning miles on flights booked this way. But there is another way.
American Express puts the “transfer points” option at the bottom of a hard-to-find menu on its account page. Don’t be deterred.
Figuring out how to actually transfer your points is one thing. Then comes the real challenge: Which partner program should you transfer them to?
This is the step where most people — including me — are most likely to get deterred. Each credit card program has a long list of transfer partnerships ranging from well-known U.S. brands like Delta Air Lines to international airlines like EVA Air. Which transfer partner is “best”?
Be clear about your goals
Many articles about maximizing points focus on redemptions that yield the best dollar-per-point value, which are almost always business and first class awards. But it’s worth asking: Is that what you want?
If you were planning to fly in a premium cabin already these articles can be helpful. But there are many problems with trying to book these awards, including restricted availability, complex booking processes, large fuel surcharges and other fees.
Flying economy might give you a worse dollar-per-point value than flying first class, but you might be able to squeeze more trips out of your points. And transferring points to loyalty programs for economy flights could still give you an edge over booking directly through an issuer. Don’t suddenly turn into a champagne-swilling points maximizer just because some article told you to.
Also important: Don’t transfer your points until you know the redemption you want to book is actually available. Otherwise you’ll be stuck with a bunch of points in random programs, and this one trick will turn into a big hassle.
Stick with it
The thing about this one weird trick — just like exercise — is that it requires persistence. It’s not a magic bullet.
Credit card holders earn $40 billion worth of rewards each year, according to a 2022 report from the Consumer Financial Protection Bureau. And most of those rewards won’t be used to maximum effect.
By simply considering transfer partnerships as an option when using your credit card points, you’ve already put yourself 10 steps ahead of most people.
American Express has increased the signup bonus offer on the premium Marriott Bonvoy Brilliant card and the mid-level Marriott Bonvoy Bevy card:
American Express is offering a bonus of 185,000 points after you spend $6,000 within the first six months on the Marriott Bonvoy Brilliant card.
American Express is offering a bonus of 155,000 points after $5,000 in spend on the first 6 months on the Marriott Bonvoy Bevy.
Offers are valid through May 1, 2024.
Card Details
Bonvoy Brilliant:
$650 annual fee
$300 in total dining statement credits – $25 each month
Card earns at the following rates:
6x points per $1 spent at participating SPG & Marriott Rewards hotels
3x points per $1 spent at U.S. restaurants and on flights booked directly with airlines
2x points per $1 spent on all other purchases
Free night award every year after your card account anniversary (can be used at any property that costs under 85,000 points per night)
Complimentary gold elite status
Platinum elite status
25 nights towards elite status (you’re restricted to getting this benefit once per Marriott Loyalty program number)
Unlimited complimentary priority pass lounge access for you and up to two accompanying guests
Statement credit for Global Entry ($100) or TSA PreCheck ($85) every four years
No foreign transaction fees
Free in-room premium internet access at SPG & Marriott participating hotels
Welcome offer not available to applicants who (i) have or have had The Ritz-Carlton™ Credit Card from JPMorgan or the J.P. Morgan Ritz-Carlton Rewards® Credit Card in the last 30 days, (ii) have acquired the Marriott Bonvoy Boundless™ Credit Card from Chase, the Marriott Rewards® Premier Plus Credit Card from Chase, the Marriott Bonvoy™ Premier Credit Card from Chase, the Marriott Rewards® Premier Credit Card from Chase, the Marriott Bonvoy Bold™ Credit Card from Chase, the Marriott Bonvoy™ Premier Plus Business Credit Card from Chase or the Marriott Rewards® Premier Plus Business Credit Card from Chase in the last 90 days, or (iii) received a new Card Member bonus or upgrade offer for the Marriott Bonvoy Boundless™ Credit Card from Chase, Marriott Rewards® Premier Plus Credit Card from Chase, the Marriott Bonvoy™ Premier Credit Card from Chase, the Marriott Rewards® Premier Credit Card from Chase, the Marriott Bonvoy Bold™ Credit Card from Chase, the Marriott Bonvoy™ Premier Plus Business Credit Card from Chase or the Marriott Rewards® Premier Plus Business Credit Card from Chase in the last 24 months.
Bonvoy Bevy
$250 annual fee
Card earns at the following rates:
Earn 6X points for every $1 spent at Marriott properties
Earn 4X points for every $1 spent on the first $15,000 in combined purchases each year on grocery stores and dining
Earn 2X points for every $1 spent on all other purchases
Free Night Award every calendar year, after $15,000 in spend within that calendar year (good for up to 50,000 points)
Complimentary Gold Elite status
15 elite night credits toward elite status
Welcome offer not available to applicants who (i) have or have had The Ritz-Carlton® Credit Card from JPMorgan, the J.P. Morgan Ritz-Carlton Rewards® Credit Card, the Marriott Bonvoy Bountiful™ Credit Card from Chase, the Marriott Bonvoy Boundless® Credit Card from Chase, the Marriott Rewards® Premier Plus Credit Card from Chase, the Marriott Bonvoy® Premier Credit Card from Chase, the Marriott Bonvoy Bold® Credit Card from Chase, or the Marriott Bonvoy® Premier Plus Business Credit Card from Chase or the Marriott Rewards® Premier Plus Business Credit Card from Chase in the last 30 days, (ii) have acquired the Marriott Bonvoy Bountiful™ Credit Card from Chase the Marriott Bonvoy Boundless® Credit Card from Chase, the Marriott Bonvoy Bold® Credit Card from Chase in the last 90 days, or (iii) received a new Card Member bonus or upgrade offer for the Marriott Bonvoy Bountiful™ Credit Card from Chase, the Marriott Bonvoy Boundless® Credit Card from Chase, or the Marriott Bonvoy Bold® Credit Card from Chase in the last 24 months.
Our Verdict
These are both best-ever offers. A lot of people will find these interesting for the signup bonus and benefits, despite the high annual fees.
Use a friend’s referral link to apply so that they’ll get some free points as well. Check out these Things To Know About Amex before applying. We’ll add this to our list of Best Current Credit Card Signup Bonuses.
Capital One is offering a 20% transfer bonus to Qantas. Normally the transfer rate is 1:1 and with this bonus it’s 1:1.2
The Fine Print
Valid until September 1, 2024
Our Verdict
First transfer bonus we’ve seen from Capital One to Qantas. Useful if you have a redemption in mind but I never recommend speculative transfers in case there is a devaluation.
Are you looking for the best cash back apps? Finding ways to save money on everyday purchases is always a good idea. Cash back apps are a great tool to help you get some of your money back (and even free gift cards) on things you buy all the time. These apps can reward you…
Are you looking for the best cash back apps?
Finding ways to save money on everyday purchases is always a good idea. Cash back apps are a great tool to help you get some of your money back (and even free gift cards) on things you buy all the time. These apps can reward you with cash, points, gift cards, or discounts just for shopping like you normally do.
With so many cash back apps available, it can be hard to know which ones to use. Some apps focus on groceries, while others give rewards for travel, gas, or online shopping. By using the right cash back apps, you can make sure you’re making the most out of your spending.
In case you want a quick summary, my favorite cash back apps are:
There are many others on the list below that you may find helpful too!
Best Cash Back Apps
These 14 best cash back apps will help you make extra money. You can get cash back for groceries, online shopping, and more.
1. Rakuten
Rakuten is a popular cash back app and site that lets you earn rewards on your everyday shopping. With Rakuten, you get a percentage of what you spend back as cash. It’s a simple and effective way to get free money while shopping at your favorite stores like Target, Macy’s, Walmart, Old Navy, Lowe’s, and many more.
Your cash back percentage depends on the store that you are shopping at but can vary anywhere from around 1% to over 10%, which can add up quickly!
Signing up is quick and free too. Once you create your account, you can start shopping on Rakuten’s website, app, or browser extension. When you shop through Rakuten, the stores pay Rakuten a commission. Rakuten then shares part of that commission with you as cash back.
One of the coolest things about Rakuten is how easy it is to find deals. You can earn cash back on clothes, electronics, restaurants, and even ride-sharing services like Uber. The browser extension helps you find the best coupons and cash back offers.
Rakuten also has a large user base with over 15 million members. They have paid out more than $3.2 billion in cash back since they started in 1999. On average, members earned about $100 in cash back in 2023.
Payment is easy too. You can choose to get paid via check or PayPal.
Please click here to sign up for Rakuten. Plus, you can get a $30 bonus when you spend $30 if you join right now (at the time of this writing; please double-check the current offer).
2. Fetch Rewards
Fetch Rewards is a popular app that makes earning gift cards easy, and this is the app that I use for ALL of my grocery receipts. All you need to do is take a picture of your receipts using your phone.
Fetch Rewards lets you earn points by snapping receipts from any store. It works for grocery stores, clothing stores, restaurants, and even gas stations. The app also works with digital receipts from online purchases.
Some examples of what you can earn include 2,500 points for buying General Mills products, 1,000 points for Barilla Pasta, 750 points for Sara Lee bread, 5,000 points for trash bags, and more.
To get started, download the Fetch Rewards app and create an account. Then, shop as you normally do and scan your receipts to earn points. The process is quick and only takes about 10 seconds per receipt.
Once you earn enough points, you can redeem them for gift cards. These gift cards can be used at a variety of places like Amazon, Target, Starbucks, and many more. You can also choose to donate your points to charity.
The app is free to sign up for and use. There are no surveys to fill out or barcodes to scan, making it a hassle-free way to earn rewards.
You can sign up for Fetch Rewards here.
3. Swagbucks
Swagbucks is a popular app where you can earn rewards for doing simple things online. You can shop, watch videos, take surveys, and even play games to get points. These points, called Swagbucks (SB), can be redeemed for gift cards or cash.
I have been using Swagbucks for years and I think it’s a great rewards site.
One great feature of Swagbucks is how easy it is to use. You can add a browser extension to automatically earn cash back on your purchases, and this makes it super convenient as you shop online.
Another nice thing is their “Magic Receipts” feature. You just need to upload your receipts from certain stores, and you’ll earn cash back. Many big retailers are included, making it easy to earn points.
With over 20 million users and a strong reputation, Swagbucks is trusted by many. They’ve paid out more than $935 million in rewards to their users.
Please click here to join Swagbucks.
Here’s a screenshot of some of the cash back that I’ve received from Ibotta recently.
4. Ibotta
Ibotta is a popular cash back app that helps you save money on groceries and more. It’s free to download and use and with Ibotta, you can earn real cash back on everyday purchases.
Using Ibotta is easy. You just head to the Ibotta app and add offers for things you want to buy before you go shopping. These offers can be for groceries, clothing, and even dining out.
Next, you shop at your favorite stores, both in-store and online. Ibotta partners with many stores and retailers, so you have plenty of choices.
After shopping, you can redeem your cash back. You do this by uploading your receipt or linking your loyalty card to the app. It’s a simple process that only takes a few minutes.
One great thing about Ibotta is that it offers cash back on a wide range of products from daily essentials like milk and bread to big-ticket items. For example, currently I can get 50 cents back on yogurt, 75 cents back on shredded cheese, $1.00 back on Cheerios, and more.
Another perk is the bonuses that Ibotta offers. These bonuses can give you extra cash back for redeeming certain offers or for reaching specific milestones.
The app is available on both iOS and Android, making it easy to use on most cell phones.
Ibotta is a great way to make some extra cash on things you already plan to buy. It’s perfect for anyone looking to save a little more each time they shop.
You can sign up for Ibotta here.
5. Upside
Upside (used to be called GetUpside), helps you earn cash back on fuel for your car (as well as restaurants and grocery stores, but I like to mainly use it for gas).
Using the Upside app is easy. You just sign up and find deals near you. The app shows you gas stations, grocery stores, and restaurants where you can get cash back.
You can earn up to 25 cents per gallon on gas and even more for diesel. Occasionally, you can get deals for higher. For example, I recently redeemed a deal to get 89 cents off per gallon – I received $15.00 in cash back!
For groceries, you can earn up to 30% back in select cities and when you eat out, get up to 45% back at many restaurants.
There are over 50,000 locations in the U.S. where you can save money with Upside. Major gas stations like BP, Shell, and Marathon are included.
To get started, just sign up for free, link your cards, and claim offers through the app. Then, make your purchases as usual, submit your receipts or use the check-in feature, and get your cash back.
Payments can be collected through PayPal, bank transfer, or gift cards.
You can check out Upside here to learn more.
6. Dosh
Dosh is a cash back app that helps you save money without a lot of work. You link your credit or debit card to the app, and it automatically gives you cash back when you shop at participating stores or restaurants.
Using Dosh is easy too. After linking your card, just shop like you normally do. The app will take care of adding the cash back to your Dosh wallet. You don’t need to worry about scanning receipts or entering codes, which I think is very nice and convenient.
Dosh partners with many well-known brands, making it simple to save money. You can earn cash back at places like Walmart, Target, and Pizza Hut. The app also works with thousands of hotels, adding more ways to save.
One of the best things about Dosh is that it handles everything for you automatically. It deposits your rewards into your account. Once you reach a certain balance, you can transfer your cash to your bank, PayPal, or donate to charity.
If you like finding deals and saving money without effort, Dosh might be a great app for you. It makes saving easy and fun, helping you make the most of your purchases every day.
7. TopCashback
TopCashback is a great choice if you want to save money on your purchases. This app connects you with over 7,000 retailers, making it super easy to earn cash back.
To start, sign up for a free account. Then, search for your favorite store and click on the offer. After you shop, your cash back gets added to your account.
TopCashback stands out because it tends to have higher cash back rates compared to other apps. This means you can save more money on each purchase.
It’s important to note that while TopCashback is very user-friendly, I did find some reviews where some people find that it could improve in processing times for gift card purchases.
If you shop online often, TopCashback can help you earn cash back on your regular spending. The app is available on both iOS and Android, so you can use it on the go.
8. PayPal Honey
PayPal Honey is a browser extension that makes online shopping easier and cheaper. When you shop online, Honey automatically finds and applies coupon codes at checkout. You just add it to your browser and it starts working right away.
Honey works with over 30,000 stores. This includes big names like Amazon, Macy’s, and Nike, so there’s a good chance you’ll find a discount on something you’re buying.
Another cool feature is the Droplist. You can keep an eye on items you want to buy and get alerts when their prices drop, and this helps you buy things at the best time and save even more money.
Honey is free to use and easy to install. If you want to save money without the hassle of searching for coupon codes yourself, it’s worth trying out.
You can learn more about Honey by clicking here.
9. Shopkick
Shopkick is an easy way to earn rewards when you shop. You can get “kicks,” which are points, for doing simple things.
For example, you earn kicks just by walking into certain stores, and this makes it super easy to start earning rewards right away.
You can also earn kicks by scanning the barcodes of products in the store. Some items even give extra kicks when you buy them and submit your receipt.
Shopkick isn’t just for in-store shopping. You can also earn kicks when you make purchases online through the app.
Once you collect enough kicks, you can trade them in for free gift cards. These gift cards can be used at many popular stores, which gives you a lot of options.
The app is free to use, and it has a lot of participating stores. This makes it a great way to earn rewards on stuff you already buy.
Here’s a screenshot of my personal Capital One Shopping account. You can see how much money it has saved me here!
10. Capital One Shopping
Capital One Shopping is a handy tool for anyone who likes to shop online. It’s a browser extension that finds coupon codes while you shop. This makes saving money super easy because the tool does all the work for you. Just shop as usual, and it will automatically apply the best coupon codes at checkout.
I have Capital One Shopping installed on my browser, and I love how it helps me save money without me having to think about it. I used to always forget to look for coupon codes, or sometimes it would take forever to find a coupon code that worked. Capital One Shopping takes all of that wasted time and does it for you.
You can use Capital One Shopping on almost any browser, including Chrome, Firefox, Edge, and Safari. It’s also available as a mobile app for both iOS and Android. This means you can save money whether you’re shopping on your computer or your phone.
Another great feature is the price comparison tool. If you’re looking at an item, Capital One Shopping checks other websites to see if you can get a better deal.
Another perk is that you earn rewards points while you shop. These points can be turned into gift cards for many popular stores. It’s like getting a little cash back on your purchases. I recently redeemed $71.00 in free gift cards for simply just doing my normal online shopping.
You can also add items to a watchlist, and the tool will let you know if the price drops. This way, you can buy things at the best possible time.
Capital One Shopping is free to use and easy to install. Just add the extension to your browser or download the app and then shop as you normally do and enjoy the savings!
You can learn more in my Capital One Shopping Review.
11. Receipt Hog
Receipt Hog is a cash back app that helps you earn cash back by simply scanning your receipts.
You take pictures of your shopping receipts and upload them to the app. For each receipt, you get coins. These coins can then be exchanged for money through PayPal or gift cards.
The cool part is, you can use receipts from nearly any store. Whether you shop at a grocery store, department store, or even a gas station, you can take a photo of that receipt and earn coins.
Receipt Hog also has special bonuses and sweepstakes. Sometimes, you might get extra coins or the chance to win larger prizes. It’s a fun way to get rewarded for your everyday shopping.
Recommended reading: 14 Best Apps To Scan Receipts for Money
12. Checkout 51
Checkout 51 is a user-friendly cash back app that helps you save on groceries, gas, and more. It’s free to download and simple to use.
With Checkout 51, you can look at their weekly offers and select the ones you like. When you buy those items, you just need to upload your receipt to the app.
New deals are added every week, so there is always something new to save on. It’s a great way to cut down on your grocery and gas expenses.
13. Receipt Pal
Receipt Pal is an app that makes earning rewards easy. You just need to scan your receipts and this app works with any store, so you can rack up points from grocery shopping, gas, dining out, and more.
Each time you scan a receipt, you earn points. These points can be turned into gift cards for popular retailers.
The app is free to use. You need to take a picture of your receipt within 14 days of your purchase. Once you upload the receipt, Receipt Pal will handle the rest.
You can also earn extra points by completing surveys and playing games within the app. This can make reaching your reward goals go more quickly.
14. Upromise
Upromise is a cash back app that helps you save money for college. Instead of just giving you cash back for everyday purchases, it allows you to put those savings into a college fund. This makes it a great option for families planning for future education expenses.
When you shop through Upromise, you earn cash back on things you buy. It works with many stores and restaurants. You can also earn rewards by scanning receipts and dining at participating restaurants. The cash back can be automatically transferred to a 529 college savings plan.
Another cool feature is that you can also link someone else’s 529 plan to your account. This means grandparents or other family members can contribute to your child’s college savings too.
Upromise is a good way to turn your everyday spending into savings for the future. It helps make the dream of paying for college a little more achievable.
What Are Cash Back Apps?
You may have questions about cash back apps. If so, then I would like to talk about them and how they work in this section.
Cash back apps help you save money on everyday purchases. By using these apps, you can get a percentage of your spending back in the form of cash rewards.
How cash back apps work
When you shop through a cash back app, the cash back app partners with retailers to earn a commission. Instead of keeping all the commission, the app shares a portion with you so that you will be persuaded to use their app more (everyone wins). This means you get back a small percentage of what you spent.
You start by downloading the app and creating an account. Then, you browse through the app’s partner stores to find the ones you like. When you make a purchase through the app, you earn cash back that you can usually redeem for PayPal, bank deposits, or gift cards.
Benefits of using cash back apps
Cash back apps can save you money without much effort. Every time you shop through these apps, you earn a little back on what you’re already spending. Over time, these small savings add up.
Many apps also give extra bonuses or special promotions, which means even more savings. These promotions can include higher cash back rates for a limited time or bonus cash for shopping in particular categories.
Plus, cash back apps are free to use, making them a simple way to save a bit on everyday purchases.
I use cash back apps all the time, and I like how they can help me save more money easily.
Frequently Asked Questions
Below are answers to common questions about the top cash back apps.
Which app gives the most cash back?
Rakuten is known for giving a lot of cash back for online purchases, many times over 5%. Others, like Fetch Rewards, also give a good amount of rewards, especially for groceries.
Do cash back apps really work?
Yes, cash back apps do work and you earn money or points for purchases you make. These apps partner with many stores to give you a percentage back.
What’s the best cash back app for groceries?
I think that Fetch Rewards is the best for groceries. It has good deals on food items at many big grocery stores. You can scan receipts or link your store loyalty card to earn cash back.
Is Fetch or Ibotta better?
Fetch is easier to use since you just scan any grocery receipt. Ibotta requires more work because you must select offers before shopping. Both are good. Ibotta typically pays a little more, but you do have to do a little more work to earn the points.
What are the best automatic cash back apps?
Rakuten and Capital One Shopping are top apps for automatic cash back. Once you download the browser extension, they automatically give you cash back at partner stores. It’s simple and requires no extra work.
Another way to get automatic cash back is by using cash back credit cards. The best rewards credit cards can give cash back of around 1%-2% automatically on your purchases.
How can I tell if cash back apps are safe and legit to use?
To see if a cash back app is safe and legitimate, I recommend that you look for reviews and ratings in app stores.
Best Cash Back Apps – Summary
I hope you enjoyed this article on the best cash back apps.
The best cash back apps can help you save money on things you buy every day with little effort. With these apps, you can earn rewards on groceries, eating out, online shopping, and more. Whether you want to save a bit of money or get the most savings, these apps have different features to help you.
Plus, depending on the cash back app, you can get your cash back directly to your bank account, PayPal account, or even through free gift cards.
The best cash back apps don’t have any fees either, so you can save money without having to spend any more.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Discover strategies for achieving early retirement with the FIRE movement and learn how to maximize your credit card rewards.
How much do you have to save if you want to retire early? Can you double your credit card rewards by paying off one card with another? Hosts Sean Pyles and Elizabeth Ayoola discuss the FIRE movement and maximizing credit card rewards to help you understand how to achieve financial independence and optimize your financial strategies. They begin with a discussion of the FIRE movement, with tips and tricks on understanding different FIRE strategies (Lean FIRE, Fat FIRE, Barista FIRE), adapting financial goals to individual circumstances, and the feasibility of saving significant portions of income amidst rising living costs and inflation.
Then, credit card Nerd Erin Hurd joins Sean to discuss maximizing credit card rewards. She explains the impossibility of doubling rewards by paying off one card with another, effective strategies for couples to maximize credit card points like leveraging multiple sign-up bonuses and using authorized users, and the best and worst ways to redeem credit card points, emphasizing considerations such as point expiration, the impact of inflation on point value, and the importance of having a realistic plan for point usage.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Elizabeth Ayoola:
It’s another day at work doing the best job a girl could ask for, talking about money and hoping I earn enough to retire early.
Sean Pyles:
I feel you, Elizabeth. But given the current cost of living, is early retirement still a possibility? And how can people do that when it can be hard to save anything? Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Elizabeth Ayoola:
And I’m Elizabeth Ayoola. Now this episode we are going to answer a listener’s question about how to get the most out of their credit card points. Are you better off using them to get cash back or booking airline tickets? Speaking of which, I might do that soon. And what about using them at checkout at Amazon? But before we dig into that, let’s chat a little bit about the FIRE movement, one of my favorite topics, and whether it’s still a thing considering how the cost of living has gone up for so many, even though inflation has been cooling lately.
So Sean, you should already know I’m going to be putting you in the hot seat and quizzing your CFP knowledge. For new listeners, Sean is studying for his designation, and he’s almost about to throw up a peace sign after his final exam. So tell us, Sean, what is FIRE?
Sean Pyles:
Yeah, I have just a few more months until I sit for the CFP exam, and the studying is getting very intense. But anyway, it means I know a lot more than I did even a few months ago, which is great. So FIRE stands for Financial Independence Retire Early, and it’s a movement aimed at using different saving strategies to help people, you guessed it, retire early. Early looks different for everyone, but it’s certainly before the Social Security retirement age of 66 or 67 depending on when you were born. The main goal is to save as much as you can to retire at your chosen age. For some people that means saving between 50% and 70% of their income for retirement. That probably sounds extreme, but that’s what it might take to avoid working into your golden years.
Elizabeth Ayoola:
Definitely sounds extreme for the average person, I think. But I do often sit and think about how nobody warned me that I would be spending decades of working or maybe I was too worried thinking about how I was going to stay married for decades and missed that I was going to be at work every single day, anyway. But assuming you start working at the age of 21 and retire at 66 without any career breaks, that’s like 45 years of working. So for people who do not have time for all of that, they tend to subscribe to the FIRE movement. I am people. As much as I love my job, I definitely would love some more flexibility. So anyway, there are various types of FIRE out there to fit one’s savings and lifestyle preferences, so to speak. But the main types of FIRE that are out there include Lean FIRE, Fat FIRE, and Barista FIRE.
Sean, do you quickly want to explain what those are for us? Break those down.
Sean Pyles:
Sure. So Lean FIRE is for people who want to retire early and retire fully, but it requires a steep sacrifice as you’ll likely have to save well over half of your income. It’s also ideal for people who can embrace a minimalist lifestyle and live off of little during retirement.
Fat FIRE is essentially the opposite. People who are high earners and want to continue maintaining that lifestyle in retirement. They have to invest larger amounts of money than Lean FIRE disciples for this reason. Finally, Barista FIRE is for folks who are more focused on choosing the type of work they do and the frequency at which they work. So think of people who want to partially retire and maybe work part-time. They save enough so they don’t need the bulk of their income to come from paid work.
Elizabeth Ayoola:
Love, love, love that. And I love how there’s so many different options for different people, but I personally would love to retire in my 40s or 50s and I’m definitely a Fat or Barista girl. So I want to do all the fabulous things during my retirement and I want to be a grandma and I want to bring my fabulous grandkids along sometimes. And just for the listeners, my 6-year-old son said he wants 10 kids, so who’s going to-
Sean Pyles:
Wow, that’s a lot of grandkids.
Elizabeth Ayoola:
It’s a lot of grandkids. And he said I’m apparently going to help him look after them, so I’m going to need a lot of money here. You know what I’m saying? Yeah, right. But yeah, I will always want to do some sort of meaningful work, that said, but would love more flexibility in terms of when I work and the type of work that I do. So Sean, is early retirement something you think about and where would you fall in between the three?
Sean Pyles:
I would love to retire early. Don’t get me wrong, I really like my job and helping people through my work gives me a sense of purpose and satisfaction, but also I want to do what I want when I want. So I think I would lean more toward the Barista FIRE. Once I have my CFP certification, I can see myself building a portfolio of clients that I manage and that would be my equivalent of Barista work.
Elizabeth Ayoola:
I love that. I love that, I love that. All right, so now I’m wondering how feasible it is to save half or more of your income in this economy. I know I’ve seen a few data points this year about Americans either dipping into their retirement accounts because of inflation or cutting back on retirement savings altogether. So for instance, the 2023 TIAA Institute-GFLEC Personal Finance Index found that 25% of employed adults cut their retirement savings because of inflation-induced financial pressure, and almost half of that group halted their savings altogether. Also, a 2024 Allianz Life Study found that 67% of Americans are more concerned about paying their bills than about their financial future. Another 42% have withdrawn from their retirement savings because of inflation.
So what is my point in all of these data points? The question is, is FIRE even still on people’s radar when they’re trying to survive daily expenses? My assumption is there is still a population of people who are feeling the pinch but can afford to still save more than the average person or make sacrifices to do so. Now, honestly, I was able to do it easily last year saving a big chunk of my income. But this year with new expenses, moving cities, and the cost of living, I’ve had to scale back some. So I’m still saving a decent chunk, I’d say, but certainly not half of my income or more.
Sean Pyles:
Yeah, I mean the truth is the FIRE movement is a pipe dream for most people, but so is the idea of completely retiring for many people, unfortunately. To zoom out, the median retirement savings for folks between the ages of 35 and 44 is $45,000. And for those between the ages of 55 and 64, it’s $185,000, and neither amount would be enough to fund decades of retirement. So for many people, retirement will be funded through some combination of money they’ve saved, Social Security, and some form of work. And a quick aside here, for those who are thinking that Social Security won’t be around when they retire, I say please do not fall for numerous political messaging. We have earned these benefits and we need to fight for them if we want them, but that’s my own little thing.
Elizabeth Ayoola:
I know that’s right because I’ve earned the benefits and I need them when I retire. So we’re in the fight together, Sean. That said, I understand that it’s probably not feasible for the average person to participate in FIRE and save half of their income. In some instances, it might require getting an extra job or a side hustle to fund those early retirement dreams. That’s what I personally did, but it did take a lot of discipline and sacrifice because I was working more than I probably would have wanted to. And I wasn’t able to go on shopping sprees or vacation on a whim because I was like, “Hey, got to earmark this for retirement.”
Sean Pyles:
Totally. So if retiring early really is a priority for you, it is going to take some combination of living off much less than you earn, likely increasing the amount that you do earn, and getting really creative about how you save and invest money. And this does raise the question of how much you even need to retire. For many people, they can get away with living off of 80% of their current salary in retirement. So for a very basic estimate of how much you might need to retire early, figure out what 80% of your salary is, multiply that by your life expectancy, and you have the magic number that you need to save for. Again, that’s at a really simple level at least.
Elizabeth Ayoola:
Right. And I think even if people aren’t with the FIRE movement, it’s still good to think about what your retirement plan is. And I’m often talking to friends, family, and one of my favorite icebreaker questions is “When do you want to retire?” I know I’m not a fun icebreaker, but still, it does get people thinking about “Ooh, when do I want to retire?” And then it gets the ball rolling in terms of starting to do that math to see how much you need to save. So while you may not be able to retire in your 50s or 40s, it doesn’t hurt to see where you are and whether you can even afford to retire at the Social Security retirement age with your current savings and the pace that you’re currently putting away money as well.
Sean Pyles:
Yeah, sometimes seeing that number can be the motivation that you need to get more organized with your money, ask for that raise or even start looking for a higher-paid job.
Elizabeth Ayoola:
Right, and even if you can’t save the amount you want to right now, having a plan in place means as soon as your income increases, you can roll that plan into action. It’s easy to put off thinking about it, but as my mom friends say, the days are long, but the years are short. And I think to whatever extent we can control, we should try and set ourselves up for the best retirement possible. And money plays a huge role in that.
Sean Pyles:
So I think the bottom line here is that yes, the world is expensive, but there are also plenty of people who earn a lot of money and are able to sock away a big portion of that money. FIRE is still feasible for a dedicated privileged few, but for the rest of us, we’ll have to keep working hard, saving our money, and doing what we can to ensure that Social Security pays out when we are in our golden years.
Elizabeth Ayoola:
And playing the lottery. Just kidding.
Sean Pyles:
If you’re lucky.
Elizabeth Ayoola:
Sean Pyles:
Well, before we get into this week’s money question, we have an exciting announcement. We are running another Book Giveaway Sweepstakes ahead of our next Nerdy Book Club episode. Our next guest is Janice Torres, author of “Financially Lit, the Modern Latina’s Guide to Level Up Your Dinero and Becoming Financially Ponderosa,” which offers tips to young people on how to get started with managing their money.
Elizabeth Ayoola:
To enter for a chance to win our Book Giveaway, send an email to [email protected] with the subject book sweepstakes during the sweepstakes period. Entries must be received by 11:59 PM PT on August 22nd, so you’ve got a couple of weeks. Include the following information: your first and last name, your email address, your zip code, and your phone number. If you need more information, please visit our Official Sweepstakes Rules page.
Sean Pyles:
We are back and answering your money questions to help you make smarter financial decisions. This episode’s question comes from a listener’s text message. Here it is. “Hi. I recently got married and I’m wondering about the best way to work with our different credit cards. Is it possible or a good idea to put all of our purchases on one card and then pay off that card with another card, thereby giving us rewards on both cards? We would of course then pay off the card using a checking account to avoid carrying a balance.” To help us answer this listener’s question, we are joined by NerdWallet credit card pro Erin Hurd. Erin, welcome back to Smart Money.
Erin Hurd:
Thanks so much, Sean. Thanks for having me.
Sean Pyles:
So let’s talk about this clever idea that our listener and their spouse have. Paying off one credit card with another credit card to try to effectively double the amount of points that they could get for their purchases. Is that even possible?
Erin Hurd:
Well, I have to say it’s a very clever idea. And so I give a big hats off to this reader for thinking outside the box and also for making a plan to avoid carrying a balance upfront. Because if you’re carrying a balance on a credit card, the interest you’re going to pay will far outweigh any rewards that you’ll earn. However, unfortunately, this strategy is not possible. You cannot pay the monthly bill of one credit card using another credit card, and the rewards that you earn from credit card issuers, they come at a cost for the credit card issuers. And so they would be out of business if they were paying double rewards that way.
If the listener was carrying a balance on another credit card, it would be possible to transfer that balance to a new credit card so they could open up a new card with a 0% intro APR period on balance transfers, and then they would get some extra time to pay off that balance without paying interest. But that’s really the only way that you can essentially pay one credit card with another credit card. And I also wanted to note that you won’t earn any rewards on a balance transfer.
Sean Pyles:
In fact, there’s almost the opposite of a reward because you typically have to pay a fee for the balance transfer.
Erin Hurd:
That’s correct.
Sean Pyles:
So our listeners’ original idea won’t work out, but there are some other clever ways that couples can tag team their credit card points game. Can you talk us through some of those?
Erin Hurd:
Absolutely. I love partners working together in credit cards because two partners mean double the potential for new card signup bonuses. So if you’re thinking about a new card, it could make sense for your partner to also apply for a new card. That could be the same card, they could be different cards, but that way each of you will earn a nice signup bonus. And it can even make sense to double up on some cards that charge an annual fee, which paying double annual fees might give you a little bit of pause. But for example, some hotel credit cards, they’ll offer a free annual night certificate. So if both partners get the card, not only will they get two signup bonuses, but they’ll also get two free hotel nights a year. That way they can have a nice weekend getaway instead of just one night. They will pay two annual fees, but the cost of those two annual fees should work out to be a fraction of the value of what they would pay in cash for a free weekend away at a nice hotel.
Sean Pyles:
But I would imagine this would require the couples to be more proactively managing all of the various points and benefits that they get from their cards, right?
Erin Hurd:
Absolutely. And meeting a signup bonus is an important part of opening a new card. And so if you are not going to be able to meet the spending thresholds in order to earn those bonuses, then think twice about the cards that you’re going to open up and maybe just one card.
Sean Pyles:
So Erin, I know this is something that you and your husband do. Can you talk about how you approach this strategically with your partner?
Erin Hurd:
Absolutely. So first of all, we are going to make sure that we have enough spending coming up in our everyday expenses that we’re going to be able to meet the minimum spending requirements if we’re opening two cards. We want to make sure that we’re not spending more than we would ordinarily in order to hit those bonuses. And for people who don’t spend as much on the cards, they don’t have big expenses coming up, another way to hit a bonus quickly is that you could add your partner as an authorized user on your new card, and that way two people spending on the same account can help you hit that spending threshold a little bit more quickly.
Sean Pyles:
So someone could be an authorized user on their partner’s card even if they have the same card?
Erin Hurd:
That’s correct. And also I wanted to point out that some credit card issuers do allow you to pool points with your partner or even sometimes with other family members, and that can make it easy to amass a big stash of points that you could maybe use for a big trip. Sometimes partners can even refer each other for a new card. So sometimes I could refer my husband and if he uses my referral link to open up the card, then I will get a referral bonus and he’ll get the new card signup bonus.
Sean Pyles:
Oh, very nice, I like that. So this listener’s question got me wondering about all of the different ways that we can use our credit card points when we have accumulated them. Some cards will let you redeem your points to cover purchases or let you redeem them for items in their online stores. Some will even let you redeem your points when you’re checking out at Amazon. And I imagine that your points will go further in some places than others. So how can people determine where is the best place to use their points?
Erin Hurd:
That is such a great question, and it’s one that can be really confusing because these options are popping up more and more. And so first, let me say that your points are best spent however they’re most useful to you. So if you have a bunch of travel points but you don’t have any travel plans on the horizon, it’s okay if you choose to use them for something else, even if they’ll be less valuable. Don’t feel guilty about them. They’re your rewards. You can spend them however you want to spend them.
But if you do want to get the maximum value from your points, the first step is to have an understanding of how much these points could be worth. So when rewards are cash back rewards, they’re easy, 1 cent is worth 1 cent, but travel points can be more difficult. NerdWallet does a deep dive analysis on the current value of many top airline and hotel programs. We can link to that in the show notes, but each different kind of point or mile will be worth different amounts. And so having a basic understanding of the average current value of these points will really help you make some smart redemption decisions.
Sean Pyles:
Well, are there places where people should maybe avoid using their points?
Erin Hurd:
Yeah, so I would watch out for the options we see more and more of these days to redeem your points directly at stores. So at Amazon, for example, when you go to checkout, I’m sure you’ve probably seen the option to pay using your points. They have lots of different kinds of credit card rewards points available, and it makes it really easy. You feel like you’re getting stuff for free if you’re using points instead of actually using your real credit card, and that feels good. Getting free stuff feels good. Sometimes using your points can even be the default payment method at some of these stores without you even choosing it. So I would watch out for that. The good news is it feels like you’re getting free stuff, but the downside is that you’re often getting poor value for the points when you use them this way, unfortunately. You’re paying for the convenience and the store is betting on people not really understanding or questioning the value of your points. So for example, if you use Chase Ultimate Rewards Points at Amazon checkout, they will be worth 0.8 cents each. But those same points can be worth up to 1.5 cents each when you use them to book travel through Chase, depending on which Chase credit card you have. Or sometimes you can even get higher than 1.5 cents if you transfer them to travel partners. And so that’s a big difference there.
Sean Pyles:
Quick note that Chase is a NerdWallet partner, but that doesn’t affect how we talk about them. So Erin, you are a credit card expert. Do you have a hierarchy for maybe the best to worst ways to use your credit card points?
Erin Hurd:
So I have a lot of credit cards. I have a lot of different points in various different loyalty programs. So for me, I’m doing a lot of mental gymnastics, deciding if it’s a good deal or not when I redeem my points. But here are some of the things that I’m considering in my head when I’m deciding. So I’m thinking about the expiration. Are these points going to expire? Thankfully, most points don’t expire as long as you have the credit card still open.
Or for some of the travel points, if there’s some activity in your account every 18 to 24 months, your points won’t expire for the most part. But if you anticipate closing a card, make sure you can use all those points first, even if you’re not getting the best value. Because points in some airline and hotel programs, they can have a hard expiration date even if there is activity in the account. So that’s the first thing I would look at, are these points ever going to expire?
Sean Pyles:
And even if someone’s points won’t expire soon, it’s likely a good idea to use them sooner than later because inflation is decreasing the value of our credit card points, right?
Erin Hurd:
That’s right. Holding onto a whole bunch of points is not really a good investment strategy because you’re not earning any interest and you are definitely going to be a victim of inflation at some point or another.
Sean Pyles:
All right, so what other questions are you asking yourself as you think about what points to use where.
Erin Hurd:
I’m considering if I have a realistic use for these points in the next year or two. It can be really easy to hoard these points, even inadvertently, in order to save them up for a big trip or a big someday aspirational something. But if you’re hanging onto those points for years and years, it really just isn’t a great strategy because the points are worth money. But those points, like I said, they’re not earning any interest, they’re just gathering dust in your account, and really the travel redemption options, if that’s what you want to use your points for, those options are always changing and they’re often getting devalued, and it’s completely out of our control. And so I say it’s better to use them now even if it’s for a lesser value.
Sean Pyles:
Yeah, I recently found myself in a similar situation of inadvertently hoarding some points. I had this credit card that I took out years ago because it gave me a decent amount of points at the pump, but then I eventually stopped using that card as frequently, but I had a bunch of points racked up and they were just sitting there. I would get emails every so often from this credit card saying, “Hey, you want to use your points on something?”
So I went into their online store. When you log in, you can get random things like sunglasses or Stanley Cups or what have you. And I bought myself an Apple TV basically for the sake of using the points, but I did wonder whether I was making the most efficient or optimized use of those points. So I don’t know. I would love to hear how you think about these online storefronts that credit cards have. Do you think these are a good use of credit card points or not so much?
Erin Hurd:
It really depends. Usually they’re not the best value. Sometimes the credit card issuers will run specials where buying items with your points, and usually it’s only specific items, it’s not all the items, but maybe items that no one’s really buying, and that’s why they’re going on sale with the points. Sometimes it can be a decent deal. I’m recalling in recent memory, Chase has offered a 10% bonus on Apple products through their portal on occasion. So that can be a good use of points if you’re in the market for an Apple product anyway. But for the most part, I would say do the math, compare how many points they’re asking to the cash price, and just make sure that you’re getting a decent value.
Sean Pyles:
Any other questions that you ask yourself as you’re thinking about where to use your points?
Erin Hurd:
Yeah, especially in terms of shopping. I’m thinking about can I get more value for myself if I redeem these points for cash instead of using them for shopping? Like we’ve been discussing, some of the options to use the points at checkout are convenient, but you’re paying for that convenience. So here’s another example for you. Citibank issues Thank You Points, that’s their reward currency. And those points can be redeemed through PayPal, if you check out at PayPal, for anything that you’re buying for a rate of 0.8 cents each. Now, in most cases, those same points could be redeemed for cash at 1 cent each. So if you’re going to use them through PayPal for 0.8 cents, you might as well take the couple of extra steps and redeem them for cash and then use the cash to buy whatever you were going to buy for PayPal.
Sean Pyles:
And a quick note that Citi is also a NerdWallet partner, but again, that does not affect how we talk about them. Your example there underlines a certain skepticism that I have about all of these corporate partnerships in the credit card space. Like the PayPal Citibank collab seems like it could be a good deal for customers, but as you just outlined, it isn’t so much. So should people in general just be wary of these deals that they see between different companies or are they sometimes actually a better deal for us?
Erin Hurd:
I rarely would say that they’re a better deal. Sometimes they are as good of a deal as you could get in other circumstances, but oftentimes they’re not. So I would just really advise understanding how much your points could be worth, and if you can take that extra step to redeem them from cash and then use that cash, you’re probably going to be better off.
Sean Pyles:
All right. And as ever, ask yourself “What’s the catch?” Well Erin, thank you so much for talking with us.
Erin Hurd:
Thank you so much for having me.
Sean Pyles:
And that’s all we have for this episode. Remember, listener, that we are here for you and your money questions. So send them our way. You can call or text us on the Nerd hotline at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected]. Visit nerdwallet.com/podcast for more info on this episode. And remember to follow, rate, and review us wherever you’re getting this podcast. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
This episode was produced by Tess Vigeland. Sara Brink, the best audio editor in the world, mixed our audio, and a big thank you to NerdWallet’s editors for all their help.
Here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances. And with that said, until next time, turn to the Nerds.
Barclays offering a sign up bonus of 80,000 JetBlue points after $1,000 in spend within the first 90 days of account opening on the JetBlue Plus card.
Card Details
Full Review Here
Card earns at the following rates:
6x points per dollar spent on jetBlue purchases (previously 2x points)
2x points per dollar spent on restaurants and groceries (previously 1x point)
1x points per dollar spent on all other purchases
Annual fee of $99 (not waived first year)
Free checked bag for the primary cardmember and up to three companions on the same reservation when you use your JetBlue Plus Card to purchase tickets on JetBlue-operated flights
Earn 5,000 bonus points every year after your account anniversary
Enjoy all Mosaic benefits for one year after you spend $50,000 or more on purchases after your anniversary date
Get 10% of your points back every time you redeem to use toward your next redemption
No foreign transaction fees
$100 statement credit after you purchase a Getaways vacation package with your card
50% savings on eligible inflight purchases including cocktails, food and movies
Our Verdict
Not as good as the 100k point bonus we once saw, but I doubt we will see that again. This 80,000 point offer is the best variation that we do see from time to time. I do think this is worth signing up for if you value JetBlue points so we will add it to the best credit card bonuses. JetBlue award flight prices are linked to the cash price of a ticket, like Southwest. If you have any questions about Barclays credit cards, read this post first.
