FlyerTalk Forums - View Single Post - Fidelity 2% cashback Amex vs other rewards cards
Old Jul 1, 2013, 10:54 am
  #30  
CFFrost
 
Join Date: Mar 2012
Location: SAN
Posts: 1,396
Another point that is overlooked when you compare mileage earning cards to cash back cards is the sign up bonus. If you sign up for an INK card, a Sapphire Preferred Card, and a United card - the redemption value doesn't really matter. Why? The points had virtually no acquisition cost. The cash sign up bonuses are generally much lower, and less common. So, folks on FT don't bother with 2% cards in part because they're usually working on a sign up bonus - or working on the last 1,000, 2,000, 10,000 miles, etc - to the next big redemption. In the case of the three aforementioned cards you'd end up with at least 154,000 miles on roughly $9,000 spend. NO 2% card can beat that, even if you redeem the points for cash or gift cards. Then factor in category bonuses, portal bonuses, etc.

Generally, I think a 2% card is best for anyone who wants one or two cards to put ALL of their spending on. But, if you're here, and you're willing to add even one new card every few months - you'll get far more from new cards with sign up bonuses.
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