There are credit cards that offer points or cash back on purchases. Which one is better? I have good credit.

I like the chase freedom visa card because it lets you choose cash back or points and switch anytime. I get 3% cash back on the things that I buy the most. I signed up online and got a $50 bonus check.

You need to crunch the numbers to see what works best for you.

If a card offers points, how much do you have to spend to earn those points? Next determine what the points are worth by checking what you can redeem them for. If a reward item in their "store" costs 1000 points and you know it normally costs $100, then you know a point is worth about 10 cents. Another factor is whether you are interested in the stuff you can redeem the points for.

Once you do that calc, you see how accumulating points compares to getting the cash back. The advantage of cash back of course is that there is no calc to do and no hunting around looking for a reward item that you actually want.