Credit Card Rewards vs. Qube Money: Which Is More Financially Savvy?

“I could never use Qube Money because I love getting credit card points for my spending!”

This is the number one response I hear from credit card users considering budgeting with Qube Money. And I get it, we all like “free” stuff. But does it make sense?

Let’s break down why you might want to give Qube Money a try, even if you’re a responsible credit card user.

This post is sponsored by Qube Money, a budgeting and banking solution rooted in consistent intentional spending. Sign up today with code MONEYMAMA for two months of Premium for free! 

As always, my opinions and experiences are my own and we never recommend products we don’t love. For more information, see our full disclosures.

Qube Money is an app and banking solution that combines the power of digital banking with the intentionality of cash envelope budgeting (without all the tracking or pesky cash.)

By creating “Qubes” (envelopes) in your Qube Money account that you need to open prior to making a purchase with your card, you develop intentionality with your money and maintain a real-time picture of your spending plan.

Want to know more? See our full Qube Money app walkthrough and review here.

Qube Money vs. Credit Cards

1 - Are Credit Card Points Worth Not Switching to Qube?

Most people understand that credit card points aren’t worth it if you can’t use credit cards responsibly. (i.e. paying off your bill in full each month.) The cost of credit card interest is never going to stack up to the value of any rewards you earn.

However, even if you are responsible with your cards, research shows you likely spend significantly more when making purchases with a credit card than a debit card or cash.

One often cited study by Dun & Bradstreet found that people spend 12% to 18% more per transaction when using a credit card. And this is the lowest estimate we’ve seen in research, with some studies showing people willing to spend over double when using a credit card instead of cash or a debit.

With credit card rewards paying at most 5% back, by switching to Qube Money and being more intentional with your spending, you might lose out on the rewards – but you’ll have even more of your own money to put towards the things that matter most to you!

2 - What About Security?

Credit cards often win out versus debit cards and cash when it comes to security because almost all credit cards carry 0% liability protection for theft.

However, Qube doesn’t work like most debit cards.

Because your Qube card carries zero balance until you open a Qube to spend, even if someone stole your card number, they wouldn’t be able to run any transactions! Any transaction would be denied, and you’d actually get a notification from your Qube app of where the denied transaction was coming from.

Your money would stay safely in your account until you have a new card and card number in hand. Thus, Qube is as safe as a credit card when it comes to theft.

Plus, you don’t have to worry about disputing charges that aren’t your own – they simply don’t go through in the first place.

3 - What About Insurance & Payment Protection?

Some credit cards do offer payment protection including extended return periods, rental auto insurance, travel insurance and more. Qube Money – or any debit card – isn’t going to offer those protections.

So, for large expenses like travel or appliances, it may make sense to purchase with your credit card. Just be intentional about how much you’re willing to spend in those moments, so you don’t fall prey to overspending.

4 - Which Gives You More Control?

You can responsibly and effectively manage your money with Qube or by spending and budgeting with credit cards. You need to consider for yourself which method best fits your personality and gives you the most control over your money.

Money is a tool to create the lives we love. The more intentional we can be about where our money goes, the more we can put towards the things that matter most to us.

Personally, I was willing to give up credit card rewards to reduce our overall spending, put my husband and me on the same page with our budget, and get to make choices around how we spend our extra savings instead of trying to optimize the most efficient way to spend credit card rewards.

Run Your Own Spending Test with Qube Money!

If you’re concerned about losing out on credit card rewards by switching to Qube Money, I recommend downloading the app and trying it for 30 days. At the end of 30 days, compare your spending in your month using Qube to prior months using your credit card.

I’m guessing you won’t want to give up all the extra savings for a few rewards points.

Download the Qube Money app today and use the code MONEYMAMA to get 2 free months of Premium!

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