Credit Cards
Cashback vs. Points: The Debate That Shifted in 2026
Higher interest rates changed the calculus. Here's why cash is (quietly) winning again.
Explainer·The NavoFin Desk·May 30, 2026·1 min read
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What changed
For a decade, points programs had one big advantage: redemption value. A well-transferred Aeroplan point could get you 2-3 cents of value.
Then rates rose. And the value of holding cash today went up.
When cashback wins
- You carry any balance month-to-month.
- You don't book travel in advance.
- You don't have time to hunt for transfer partner sweet spots.
When points still win
- You're a strategic traveller who books business class.
- You maximize category multipliers (5x groceries, 3x dining).
- Your household income lets you pay in full every month.
The verdict
For most households in 2026: a strong cashback card is the smarter default. Add a specialized points card only when you can prove you'll use it.
If you want a personalized rundown, ask the Adviser.