Ramit Sethi advises viewers who don't travel to use a simple, flat cash-back card rather than category-based cards. He recommends the Schwab 2% flat cash-back card as an "85% solution": it reliably returns 2% on all purchases and avoids the complexity and limited utility of higher-rate cards that only apply to narrow spending categories.
So here's another thing that again, I'm getting no fees for referring this or anything. But Schwab I think has the best cash back card. And I'll tell you exactly why. There are cash back cards that people, they always brag to me, oh, I have the best cashback card in the world. 5% back. I'm like, really? 5%. So what do you get 5% back on? And that's where the world starts. Quickly narrowing all. Well, I get 5% back at the drugstore, the chocolate shop, and when I get my auto oil change. Really? Wow, that's amazing. You get 5% back on something, you spend $250 over the entire year. Amazing. There's a new card I like by Schwab, 2% flat cash back. And to me that's pretty much the 85% solution. You will get 2%. You don't have to spend the rest of your life trying to optimize where you get 5% back from. It's just 2% flat and you get on with your life. If you are looking at cash back cards, that's the one I would recommend. So that's pretty much it. Keep it simple.
