What gives a better reward... Cash back cards or FF\MR programs?

What makes more sense... using an AMEX Charge card to earn 40,000 MR a year or a Blue Cash card spending 40,000 and getting a cash back of $850 dollars?

I always thought you got more with FF programs but the Blue Cash seems to give a decent return.

$850 on $40,000 = 2.125% Are you confident that your mix of spending can generate that return? I value airline miles at more than that, but this calculation is based on my redemption pattern. If you use miles for domestic economy class flights I would certainly take the cash. If redeeming for intercontinental first or business class I would use Starwood Preferred Guest credit card, unless flying Continental or United.

On all purchases using the Blue Cash you get a 1.5% cash back return. At Supermarkets, Gas Stations, and Drug Stores you get 5% cash back.

Using the AMEX cash back calculator that is the estimated return.

This card is for a co-worker... who is looking to cancel his Green Charge card. As it stands it looks like it would be work the switch.

I currently earn MR but based on your response it might benefit me if I switched as well. I only fly for travel a few times a year� other then that I just save my MR to plan a trip some day.

in terms of maximum possible value >

you can get as high as 10-15% "back" with rewards.

cashback pales in comparison.

There's not a one-size-fits-all answer to that question because the value of a mile/point depends on how you use them. For the people I know who would typically use miles for domestic flights, cards like the AmEx Blue Cash and Citi Driver's Edge are a much better choice. Of course, this all depends on your spending pattern too.

A really quick way to compare the dollar value of the rewards you can expect from various cards for your spending profile is to use the rewards calculator at Credit Card Tune-Up (Find the Best Rewards Credit Card Deal).

It'll also calculate the best combinations of cards for a spending profile.

OTOH premium classes on domestic transcons, especially UA PS (NY-SF/LA) and AA's NYLA = pretty high values

It used to be simple for me as there used to only be very few rewards programs and such. After stumbling along sites such as FT and FW, I find there is a overwhelming amount of information/stratedgies/programs out there.

In some ways I find ignorance to be bliss... Before I knew of these programs, I considered myself quite saavy. now I find I can't make a move without thinking I'm not maximizing my $$ or I'm missing out on some opportunity.

Despite my annoyance at these kinds of sites, I can't seem to stay away

It really depends on exactly what reward you want.

First - you need to peg the value to something so determine what flight and class you want as a reward - this will give you the number of miles you would need to redeem.

Second - research the cost price to buy a ticket on that route and class.

Third - divide the 2 to work out the value (in cents) of an individual mile.

Once you do this you can directly compare cards for different airlines (which might have different award prices for the same route/class) as well as cashback cards percentage rate per dollar spent (since this is directly comparable with the number in 3 above).

Of course you also need to look at the earning restrictions with the cards (annual and monthly limits etc). But it's a start. Blue cash gives cashback on 'year to date' spend so the higher 1.5% rate doesn't apply for the first part of the spend per year.

You can get a better rate than MR rewards for airline mile cards as well...

Not sure i understand this... i thought the 1.5% on the Blue Cash kicked in as soon as $6500 was spent on the card??

That is my understanding as well - lower rate for the first $6500 per calendar year, higher rate for the rest. Each year it resets.

Understood. Based on your spending would determine how long it would take to reach this limit.