Forget Travel Cards. Here Are 3 Reasons Cash Back Wins for Most People

I've tested just about every reward structure out there -- travel points, transferable miles, portals, partnerships, you name it. And I'll be honest: my biggest gripe with travel cards is how often they box you in.

Most major issuers want you redeeming through their travel portal. And while that's totally fine for many folks, it removes your ability to deal-hunt. If a cheaper flight shows up on Google Flights or a random airline site, too bad -- your points only stretch so far inside the issuer's travel portal.

Plus, if you try to redeem travel points for cash or gift cards instead, you'll usually get a reduced rate.

Cash back avoids all of that. They're simple, predictable, and in a lot of cases, deliver more value for everyday spenders than any "luxury-leaning" travel card.

Here's why cash back wins for most people, especially heading into 2026.

1. Cash back is way simpler to understand

When you earn 2% cash back, you know exactly what you're getting -- $0.02 back for every dollar you spend.

Travel cards aren't usually that simple. One point might be worth $0.01 in the portal, $0.015 with a boost, or up to $0.02+ transferred to a partner… but only if you find award availability and navigate a redemption maze.

Most people don't have the time for that. They want a card that pays them back at a solid rate for groceries, gas, online shopping, and everyday bills and to know exactly how much they are earning in rewards.

A good flat-rate cash back card does exactly that -- predictable earnings, predictable value, and no surprises.

See our favorite cash back cards here and start earning more on the spending you already do.

2. You can use your rewards on anything (including travel)

This is the part I wish more folks talked about.

With cash back, your rewards aren't tied to a single travel portal. You can book flights anywhere, hunt for sales, use coupons or credits, and take advantage of last-minute deals -- all while keeping the full value of your rewards.

Travel cards limit flexibility because their systems encourage you to book everything "in-house."

But cash back lets you:

• Grab the cheapest flight on any airline
• Book hotel deals directly
• Use cash toward Airbnb, VRBO, gas, food, or whatever your trip actually requires
• Mix and match deals from multiple sites

For people who love flexibility, this is the biggest upgrade of all. You can spend cash back rewards on anything. Or just get a credit applied straight toward your statement.

3. Higher earning rates on everyday spending

Many of the best cash back cards can beat travel cards on pure earning power.

While travel cards might offer a 5x or 10x rate for travel bookings, outside that narrow category the earning rate typically drops to a basic 1x rate.

If your monthly spending looks like most American households -- groceries, insurance bills, car expenses, online orders, etc. -- those 1x rewards don't take you very far.

Instead, using a flat-rate cash back card could earn you an unlimited 2% back on everything, everywhere.

For most people, that steady 2% outperforms the mix of categories and points offered by most travel cards.

Bottom line: Cash back fits real life

Most families spend far more on everyday purchases than on flights and hotels. That's why cash back cards can easily outperform travel cards for the majority of people. They fit regular life better.

So if your goal is simple, flexible, consistent value, cash back might be your best move this year.

Explore all our top rewards cards and find the one that fits your life best.