Isn't That Rich Podcast

Everyday Spending Can Do More Than You Think

When it comes to everyday spending, most people think about credit cards in the simplest way: it’s just how you pay for things. But what we’ve learned — and what we talked about in this week’s episode of Isn’t That Rich — is that credit cards are actually their own little world, full of points and rewards that, if you know how to use them, can unlock real value. We're talking free flights, hotel stays, cash back, and even first-class upgrades if you play your cards right — literally.

Points Are Their Own Currency (And Why That Matters)

Credit card points and miles are kind of their own currency. You can’t spend them like cash at the grocery store, but they’re real, they have value, and in a lot of cases, they’re not taxed. That said, the banks, airlines, and hotels technically own them, not you, which means they can devalue your points or change the rules at any time. We learned that the hard way watching airlines quietly cut benefits and leave loyal customers scrambling. That’s why we say — and you’ll hear us say this a lot — points are meant to be used, not hoarded.

How Banks Afford to Give You “Free” Travel

One of the first questions we had when we started learning about this was: how do banks even afford to give away free flights and hotel rooms? Turns out, they’re making money every time you swipe. It's called an interchange fee — usually around 2% — and it’s built into the cost of almost every credit card transaction. So while you’re earning points back, the banks are still making their cut. And if you’re someone who carries a balance, you’re paying them even more in interest, which is why it’s so important if you play this game, you have to pay your balance in full every month. Otherwise, you’re just funding their rewards program, not yours.

The Three Types of Reward Cards (And What We’ve Learned About Them)

When you’re picking a rewards card, you’ll hear about three main types: cash back cards, co-branded travel cards, and transferable points cards. We talked through each of these in the episode because there are some real pros and cons, depending on how you live and what you value.

Cash Back Cards: Easy, Reliable, and Perfect for Everyday Life

Cash back cards are probably the easiest to understand and use. Ashley shared how she started with a Discover cash back card in college — using it for gas and groceries and feeling like a millionaire when she logged in and saw a free $90 sitting there. With cash back cards, you swipe, and you earn a small percentage back — usually 1% to 5% — either as a credit on your statement or a payout you can spend however you want. It’s easy and flexible, and for a lot of people who aren’t planning big trips or don’t want to overthink their card strategy, it’s the perfect fit. The downside is you’re probably not going to get the massive sign-up bonuses you hear about with travel cards, and you can’t transfer cash back into miles or hotel points later on. It's a great system if you want simple rewards, but it's not where the biggest value lies if you're hoping to turn points into vacations.

Co-Branded Travel Cards: When Loyalty Pays Off (But Only If You’re Loyal)

The next type we talked about is co-branded travel cards — like when Delta teams up with American Express or Marriott partners with Chase. Jill flies Delta all the time between St. Louis and Minneapolis, so for her, a Delta SkyMiles card actually makes a lot of sense. If you’re loyal to one airline or hotel, these cards can offer real perks: free checked bags, priority boarding, free hotel nights, even companion flight certificates. The catch is you’re locked in. If a cheaper flight pops up on a different airline, you don’t get the same perks. Plus, if that airline or hotel decides to devalue their program, your points instantly become less valuable. These cards are amazing for loyal travelers but can feel limiting if you like to chase the best deals or fly different airlines based on where you're going.

Transferable Reward Cards: Flexibility for the Win

Then there are the powerhouse cards — the ones that earn transferable points. These are the real game changers if you’re willing to learn a little bit. Instead of being tied to one airline or hotel, you earn points with a bank — like Chase, American Express, or Capital One — and then you can move those points to dozens of different travel partners. Jill talked about how she uses her Capital One Venture card and always checks their shopping portal before she makes any online purchases. Like the other day when she spotted 9x points at Lululemon — just for clicking one extra link. These cards offer so much flexibility: you can book flights, hotels, transfer points for bonuses, or even cash out if you want. But they do come with higher annual fees and a bit of a learning curve. You need to understand how to transfer your points strategically and make sure you’re maximizing your rewards. If you're willing to do that, though, these cards can stretch your dollars — and your travel — way farther than anything else.

One thing that really helped Jill start figuring all this out was a book called How to Win at Travel by Brian Kelly, who you might know as The Points Guy. If you’re serious about learning the rules of the game — and how to actually use your points instead of hoarding them — it’s a must-read. It breaks down the basics in a way that’s simple but smart, and it’s packed with tips most people don’t even realize are possible. Definitely worth checking out if you’re ready to dive deeper.

As you get deeper into it, you start to realize that there are a handful of major rewards programs that most of these cards tie into. We talked about the big five during the episode:

• American Express Membership Rewards,
• Chase Ultimate Rewards,
• Capital One Venture Miles,
• Citi ThankYou Rewards, and
• Bilt Rewards.

These are the main players when it comes to transferable points, and they each have their own list of airline and hotel partners you can use to get the most out of your points.

And if you’re looking for cards we personally love — and ones that we think offer a great starting point depending on what you want — we mentioned a few of our favorites too.

• The Chase Sapphire Preferred is a great entry-level travel card with a strong signup bonus and good flexibility.
• The American Express Gold Card is a favorite for foodies, giving huge points on dining and groceries.
• The Capital One Venture Card is perfect if you want simple travel rewards with a straightforward system.
• And if you’re renting right now and paying rent every month, The Bilt Mastercard is one of the only cards that lets you earn points on your rent without paying extra fees — which is pretty amazing when you think about how big that monthly expense usually is.

A Few Ground Rules Before You Start Earning

Of course, no matter which type of card you choose, there are a few ground rules that are non-negotiable. You have to pay your balance in full every month. No exceptions. Interest charges will eat up any reward you earn faster than you can swipe your card. You also shouldn’t spend just to earn points. The points game works best when you’re using it for purchases you were already planning to make. And please, don’t sit on your points forever. They’re meant to be used and enjoyed — not stockpiled until the airlines change the rules or inflation hits your reward stash too.

What’s Coming Up Next

We’re just getting started, but hopefully this episode gave you a solid foundation. In our next conversation, we’re diving into how to earn those huge signup bonuses you hear about — you know, the ones that can send you to Europe just for doing your normal spending a little smarter. Jill's already plotting how to turn her everyday grocery runs and online shopping into a first-class ticket to Italy, so if you’re ready to start earning rewards for the life you’re already living, stick with us. It’s easier than you think — and a lot more fun once you know how the game works.