Forget miles, go for cash back with credit cards

Investors who think like millionaires won't have any rude surprises when their post-holiday credit card bill arrives, one adviser tells his clients frequently. In an article posted Tuesday on his web site, David John Marotta, president of Marotta Wealth Management Inc., reminded investors that “the sooner you start thinking like a millionaire, the sooner you will become one.” That means no balance, no late fees, and though it may seem counterintuitive, no miles. “[Millionaires] are just interested in cash back,” Mr. Marotta said in an interview. Other desirable features he cited include the ability to download transactions and statements to financial software and one-time credit card numbers to use for Internet purchases. Consumers also should look for a card that automatically places cash-back awards in an investment account, rather than roll them back on a card or paid out in a check. He suggests looking at major investment firm credit card offers for some good deals, though he said they change frequently. Rewards points or airline miles aren't as valuable as cash, and most airline cards charge an annual fee, which negates much of the benefit of the rewards, he said. There is one way to make an airline card pay off but it is not for everyone, he said. He tells an anecdote about one investor he spoke to who made a “hobby” out of racking up miles on his credit card. “You can do that, but I meet very few who want to work as hard as it takes,” Mr. Marotta said. His advice for mileage jockeys: check your credit score often.