What is better? Airline credit cards and travel rewards

(CRON) — On today’s episode of Winners & Losers, financial expert Rob Black talks about rising stocks, falling house prices and airline rewards versus travel credit cards .

Winner: Stocks rise after worst week since March 2020

There is strong bounce supply in the market today, which is comforting to many after last week’s heavy losses.

The scope of the market reflects the positive disposition.

The progressives lead the decliners by a margin of 7 to 1 at the NYSE and by a margin of 4 to 1 at the Nasdaq.

The bounce trade also showed up in the cryptocurrency market, which was pummeled last week and bled into the long weekend with Bitcoin prices falling below $18,000. Currently, Bitcoin is up 3.6% at $21,586.20.

Uber is restarting shared rides in US cities like New York, San Francisco, Los Angeles, Chicago, Phoenix, San Diego, Portland, Indianapolis and Pittsburgh.

Food and snacks giant Mondelez has agreed to buy energy bar company Clif Bar for nearly $3 billion. Cliff, based in Emeryville, manufactures the brands Clif, Luna and Clif Kid.

Twitter stock jumps as board recommends Elon Musk’s $44 billion takeover bid.

Someone paid $19 million to go to lunch with Warren Buffett. And no, it’s not at the buffet. Proceeds benefit Glide, a nonprofit in the Tenderloin neighborhood of San Francisco that helps people who are homeless or struggling with addiction.

Dave & Buster’s turns a Miami arcade into a one-night B&B.

Loser: House prices should fall as rates rise

Home prices in the United States are expected to fall as mortgage rates above 6% undermine affordability for the average buyer.

Property prices could contract by 5% per year by the middle of next year.

An average household looking to buy a home at the median price will now have to spend more than a quarter of their annual income on mortgage payments. This exceeds the average of 24% observed in the mid-2000s.

We’ve talked about rising mortgage rates, here’s a real-world example: the average new mortgage payment in San Jose, California is up nearly $3,000 since the start of this year, when it was $5,304 $.

And in New York, mortgages are nearly $1,000 more per month than in January.

“This deterioration in affordability will shut many potential buyers out of the market,” Matthew Pointon, senior real estate economist at Capital Economics, wrote to MPA Magazine. “It will reduce competition for homes, and sellers will eventually see the need to accept a lower price for their property.”

Winner: Airline Credit Cards vs. Travel Rewards

These two categories of credit cards may seem interchangeable, but they are actually quite different.

An airline credit card is a co-branded credit card for a specific airline, and its rewards can only be redeemed with that airline and its airline alliance partners.

A travel rewards credit card, on the other hand, is not tied to a specific travel brand, so points earned are transferable and can be redeemed for all types of travel booked directly through the travel portal. the card or by transferring points to any number of hotel or airline partners.

For example, the Capital One Venture X Rewards credit card allows you to earn Capital One miles, which can be redeemed through the Capital One travel portal for various travel purchases, including flights, rental cars and hotels. . You can also choose to transfer your Capital One miles to one of its many airline and hotel partners.

There are three questions to consider when choosing between airline credit cards or travel rewards.

Both types of credit cards offer great opportunities to save money on an upcoming trip, and one isn’t inherently better than the other.

1. How do you usually travel?

If you tend to fly more than three times a year, an airline credit card might be a good choice, especially if you’re loyal to a particular airline.

2. Are there any expensive trips in your future?

Expensive trips like Europe usually involve more than one airline, so travel rewards cards such as Amex Membership Rewards® points or Chase Ultimate Rewards® points might work better.

3. What is your budget for an annual subscription?

I eat out a lot, so a card with an annual fee doesn’t bother me if the card offers triple rewards and things like $300 travel credits.

I never like affinity cards related to sports teams or universities.

The best credit cards with travel rewards:

  • Winner: American Express® Gold Card
  • Finalist: Capital One Venture Rewards Credit Card
  • Best Welcome Bonus: Chase Sapphire Preferred® Card
  • Best for Luxury Travel: Chase Sapphire Reserve®
  • The best with no annual fee: Miles Discover it®

While there are several good travel rewards cards from major card issuers like Chase and American Express, my favorite is the Chase Sapphire Preferred because it gives me the ability to redeem my Ultimate Rewards points with multiple airline and hotel partners that I frequent frequently. use.

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