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We look at the idea of opportunity cost and how it affects credit card rewards.
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21 comments
That typing thing is graham stephan 😂
Cash back gives more versatility. Points give more value.
Dunno what the big deal is. Covert the return of both methods to cash value specific to the use case, then use the one that yields the bigger return.
I’ve been following your videos for a while 👍. I keep thinking of switching to my double points card, because when ever I decide to use my Amex points for hotels, travel, purchases is seems like the value of those points is 1 cent or so rather then 2 cents. It seems you can only get 2 cent or higher value at very specific times, and on travel or hotels when I don’t want to use the points.
Most of the 2X benefits you say are only available on travel cards. If a person doesn't travel they are valued at 1X. Also Citi's credit cards treat cash-like purchases as advances so be careful with them.
Hustler!
Shifu I got my first CC recently. How long should you wait to open your second CC. Love the channel BTW.
The real opportunity cost is the time you spend trying to figure out how to earn more points instead of more money.
Just notice that your shirt is from my city: Kaohsiung!! BTW, learn a lot from you! Wait!!! You are 郝毅博！！
I commented on opportunity cost. Just pointing out the total money required to be spend before you beat cards that requires money. Most retail store has their own credit card that offer greater than 3% cash back. So it’s really hard to use a single card that can beat that. Not to mention one with fees.
Yes Dave is on to something important. You are one of the headmasters of credit card points Kult but with the reduction in the number of points being passed out and most people do not have a lot of free points because the have a YouTube channel on credit cards etc. Dave is on to something I think may hit the 80 % that are not in the top 15 percent.
A major point of "opportunity cost" is to do a "breakeven analysis." Comparing a given opportunity to a 2% no annual fee is one way to do this. I would agree that it's a reasonable "benchmark" to use because it's the ease of use and zero fee. (Quotation marks added around business school jargon / lexicon)
Great video! Sorry for being the "what about the opportunity cost?!?!" person in the comments. Loyal viewer, I promise. 😉
I think of opp cost as loss of time, for instance having to figure out what card you should use on each individual purchase. Yep.
You're funny asf when you mock people when they comment on your video's. I'm dying laughing yo. 💀😂🤣
Yes,
Plz include 2% comparisons in the future 👍
0:08 yo! i got the same laptop XD
How do you know it goes through as a cash advance?
I'm trying to venmo someone and don't want it to go through as a cash advance
I would argue to some degree the 1.5% cash back cards are superior than the 2% cards since the break even point for a 2% card that offer no 150 or 200 min spend bonus would need 30000 to 40000 dollars in spending inorder to break even while also not offering a 0% apr purchase period which if used with plastiq could be used to refinance portions of debt while simultaneously meeting min spend requirements.
Lmaoo that Graham!
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2% is boring.