For almost all of our trips, I’ll use points and miles to cover airfare and hotels. That’s still the core of my credit card strategy, and it’s how we get the most value for our spending. But there are always situations where you can’t use points. Award tickets come with taxes and fees, not every hotel program covers every destination, and sometimes you just find a deal where paying cash makes more sense.
That’s where a cash back card comes in.
Why Cash Back Belongs in a Points Strategy
Points and miles are great when you can redeem them, but cash back has its own advantages:
- Predictable value: One cent is always worth one cent. No guessing at whether you’re getting a good redemption.
- Covers the gaps: Perfect for those “must pay cash” expenses—award ticket taxes, resort fees, rideshares, meals, and other out-of-pocket costs.
- Better for unbonused spend: Instead of earning 1x points on purchases that don’t fit bonus categories, a 2% cash back card doubles your return.
Bonus Categories vs. Flat-Rate Simplicity
Cards with rotating or elevated bonus categories (like Discover or Freedom Flex) are nice, but they only apply to certain types of spend. A flat-rate card earns a reliable return on everything else. Having both means you’re not leaving money on the table.
My Experience With Fidelity Rewards
My choice for a flat-rate cash back card has been the Fidelity Rewards Visa. It earns 2% cash back on every purchase, has no annual fee, and automatically deposits rewards into my Fidelity account. Over time, that’s added up to a solid chunk of cash without any effort.
Fidelity also sends occasional spending offers. They’re not huge, but since this is a card I’d keep anyway, every little extra is a bonus.
(If you want the full details, here’s my dedicated review: The Surprisingly Good Benefits You Get With the No Annual Fee Fidelity Visa Signature Card)
Other Options Worth Considering
Fidelity isn’t the only good option. Other flat-rate 2% cash back cards include:
- Citi Double Cash – 2% back, split between purchase and payment.
- Wells Fargo Active Cash – Straightforward 2% rewards, easy to redeem.
- PayPal Mastercard – Great for heavy PayPal users.
All of them are no-annual-fee, long-term keepers.
Final Thought
I’ll always prioritize using points and miles for travel, but cash back plays an important supporting role. It fills in the gaps, gives me predictable value, and makes sure I’m not wasting spend at just 1x.
Having a cash back card doesn’t replace my points strategy—it makes it stronger.
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