Question 1

How does the credit card optimizer calculate rewards value?

Accepted Answer

The calculator multiplies your monthly spending in each category by 12, then applies each card's earn rate per category. Points are valued conservatively (e.g., 2.0 cents per Amex MR point, 1.5 cents per Capital One mile, 1.0 cent for cash back). The net annual value subtracts the card's effective annual fee (after statement credits). This gives a realistic floor — transfer partner redemptions can yield significantly more.

Question 2

What spending level do I need for premium cards to be worth it?

Accepted Answer

Generally, you need $3,000-5,000/month in total card spending for premium cards (those with $250+ annual fees) to outperform no-fee cards. At $10,000+/month — common for high earners — premium cards typically deliver $2,000-5,000+ in net annual value, far exceeding their fees. The calculator shows your exact breakeven based on your spending pattern.

Question 3

Should I get one card or use a multi-card strategy?

Accepted Answer

A 2-3 card setup almost always outperforms a single card by 20-40%. Different cards excel in different categories — for example, Amex Gold earns 4x on dining and groceries while a Chase Ink Preferred earns 3x on travel and online shopping. The calculator ranks your top 4 cards by value so you can see which ones complement each other.

Question 4

How do you value credit card points?

Accepted Answer

We use conservative valuations: Chase Ultimate Rewards at 2.0 cents, Amex Membership Rewards at 2.0 cents, Capital One miles at 1.5 cents, Citi ThankYou points at 1.5 cents, and cash back at 1.0 cent per point. These represent portal/transfer values — not aspirational sweet spots. Skilled transfer users can achieve 3-5+ cents per point on business and first class flights.

Question 5

Are the Robinhood and Coinbase cards really competitive with premium cards?

Accepted Answer

For many spending patterns, yes. The Robinhood Gold Card earns 3% on everything with only a $50/yr Gold membership — that's a higher floor than most premium cards on non-bonus spending. The Coinbase One Card can earn up to 4% on everything. These flat-rate cards set the real baseline for comparison and can beat category cards if your spending doesn't align well with bonus categories.

Question 6

Does the calculator account for welcome bonuses?

Accepted Answer

Yes. The 'First Year w/ Bonus' value includes the welcome bonus at our conservative point valuations. Welcome bonuses can add $500-2,000 in first-year value, which is why card churning strategies exist. However, ongoing annual value matters more for long-term card selection — a card you keep for 5+ years needs to justify its fee every year, not just year one.

Question 7

Can I use business credit cards without a formal business?

Accepted Answer

Yes. Selling items online, freelancing, consulting, rental income, rideshare driving, or even a planned future business qualifies. You don't need an LLC or EIN — a Social Security number and your legal name work. Business cards like the Amex Blue Business Plus (2x MR on everything, no annual fee) and Chase Ink Preferred (3x on travel/internet, $95/yr) offer exceptional value.

Question 8

How often should I re-evaluate my card setup?

Accepted Answer

Review annually or when your spending patterns change significantly (new job, moved cities, lifestyle change). Card issuers frequently update earn rates, perks, and annual fees. Also check before major purchases — a new card's welcome bonus can be worth $500-2,000 if timed with a large spending period.

Credit Card Optimizer

Total Monthly Spend

Amex Gold

How This Calculator Works

Point Valuations

Annual Fee Math

Important Caveats

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