Originally Posted by
ero2
....what am I missing if cash back can be earned at a higher rate?
Don't be distracted by the number of points, or the redemption value per point. Instead, look at the redemption value
per dollar spent. If you are looking at Sapphire Preferred the nominal redemption value is $0.0125 each (for travel), but you will earn 2 points per dollar in the travel and dining categories. This means you will earn 1.25% on some spending, 2.50% on some. You need to calculate a weighted average to see if you will net higher than 2%. If not, Capital One Venture or Citi Double Cash may be better for you.