Why a flat-rate rewards card belongs in every points strategy

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Not all spending falls neatly into bonus categories set by many rewards credit cards. While it’s easy to maximize points on dining or travel, a large share of those routine daily expenses just don’t qualify for those elevated rates.

Those are often the purchases that matter most if you want to maximize your total points haul each year — and they’re exactly why a flat-rate rewards card is so vital to my long-term strategy.

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Most travel credit cards earn just 1 point or mile per dollar on purchases outside their predefined bonus categories, such as groceries or gas. Flat-rate rewards cards take a different approach by offering an elevated return on “all other eligible purchases,” typically earning between 1.5 and 2 points per dollar.

While many of these flat-rate cards still include bonus categories for hotels or airfare, they’re unique because they offer strong earning rates beyond those categories. Instead of second-guessing whether a purchase qualifies for bonus points, you’ll get a consistent, predictable return every time you use that card.

Some people swear by strict spreadsheets, while others don’t budget at all. I’d say I land somewhere in the middle: I like to save for unexpected expenses while splurging on the things that make life enjoyable, like travel and experiences.

If you already follow some kind of a budget, whether it’s detailed or more laid-back, adding a flat-rate rewards card can be a simple way to make that system work even harder for you.

I follow a general framework for recurring monthly and annual expenses and note more erratic purchases that pop up, depending on the season, which include:

• Insurance payments, like health, auto, renters, homeowners, pet, and more
• Electric, gas, and water utility bills
• Warehouse or superstore purchases
• Vet bills and pet medications
• Home furnishings, appliances, and gardening
• Out-of-pocket health costs, including copays, prescriptions, and contact lenses
• Tuition payments
• Wedding planning expenses
• Tax payments

Fortunately, I can automatically apply many of these expenses to my flat-rate rewards card by setting them up on autopay. This makes my life easier and augments my points-earning abilities with little to no thinking.

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Start earning points on your rent or mortgage

I can put all the expenses listed above on no annual fee credit cards. If you do encounter a fee, though, it’s worth crunching the numbers to make sure the cost doesn’t outweigh the value of the rewards you’ll earn.

For simplicity (and because it has no annual fee), I use the Chase Freedom Unlimited as my flat-rate card. While it does offer a few bonus categories, it consistently earns 1.5% cash back on “all other eligible purchases” — and that’s the key phrase to pay attention to.

There are cards that earn 2x points across the board, too, and it’s worth shopping around to find the best flat-rate card for your setup. A few strong alternatives include:

• Citi Double Cash® Card: Earns 1% cash back when you buy and another 1% when you pay, for an effective 2% back on every purchase (no annual fee)
• Capital One Venture Rewards Credit Card: Earns 2x miles on all eligible purchases ($95 annual fee)
• The Blue Business Plus Credit Card from American Express: Earns 2x points on eligible purchases up to $50,000 per year, then 1x points (no annual fee)

I personally prefer the Freedom Unlimited because it’s a Visa, which means I can use it at Costco. I spent nearly $15,000 there in 2025 and expect to do the same this year, since I buy most of my groceries, household items, and even appliances there.

The Freedom Unlimited also works best because of the consistent value I get from Chase points. By pairing this card with the Chase Sapphire Preferred, I can instantly convert the cash-back rewards from the Freedom Unlimited into Ultimate Rewards points, access transfer partners, and redeem my rewards for over 2 cents per point.

That's why the math works even at 1.5x — the Chase ecosystem makes every dollar count for more than the rate suggests.

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