Buzz
Until recently, most of my spending went onto credit cards that offered travel rewards. I preferred using an airline card for personal expenses and a business travel card for my freelance purchases. Since I used to travel fairly often, I was keen to rack up and use my rewards as quickly as I could. However, this week, I made the shift to cash back credit cards instead.
The reason behind this change should be painfully clear: I took a moment to consider when my next trip would be and realized my rewards wouldn’t be helpful for a long while. Professional conferences have already been canceled through the summer, and the chances of going on an out-of-town vacation soon are... let's say unlikely.
So, I've decided to pause my travel rewards strategy for the time being. For the next few months—and perhaps even longer—earning cash back on my purchases seems like the smarter choice.
If you’re looking to follow a similar approach, here are some tips to help you make the switch quickly:
Review your credit card statements and identify any recurring charges or subscriptions. If one of these payments is linked to a travel rewards card, visit the relevant website or app and change the payment method to a cash back credit card.
Set your cash back cards as the default payment option in your digital wallets.
Update your rideshare apps, online shopping platforms, and other credit-linked apps by making your cash back cards the default payment method.
Review your utility bills, insurance premiums, and other automatically billed services. These can be the trickiest to change, and it may take a full billing cycle before the company updates your payment method. For instance, I updated my payment details with my health insurer, but my April premium still went through on my travel rewards card.
Don’t forget to change the card on file for your Amazon account!
As you update your automatic payments to cash back credit cards, it’s also a great time to reassess whether you want to keep all those subscriptions, streaming services, or premium apps. The card-switching process took me only about five minutes. If you can take those five minutes to not only update your payment details but also trim some unnecessary expenses, it’ll benefit your financial well-being in the long run.
A quick reminder: Yes, switch your payments, but don’t cancel your travel rewards cards unless they carry a high annual fee and you don’t expect to earn enough rewards to justify the cost. Closing unused cards can negatively affect your credit score: You lose available credit (which raises your credit utilization ratio and lowers your score), and if you close your oldest card, you lose a key factor in your credit history’s age.
And although it may seem hard to envision right now, you might want to return to using those travel rewards cards someday. Until that time comes, let’s keep doing our part to flatten the curve together.
