You should pick your credit card perks like Warren Buffett picks his stocks, TD Bank exec says

When it comes to choosing credit card perks, TD Bank executive Chris Fred advises consumers to consider their comfort level and expertise, much like Warren Buffett's approach to investing. Similar to the Boglehead's strategy of sticking to a simple, low-cost investment portfolio, Fred recommends opting for a flat-rate card with a universal cash back bonus rather than pursuing more complex point chasing or "churning" strategies.

Churning, although not a new concept in credit card usage, has gained attention in recent years. This practice involves opening multiple credit cards to maximize rewards, often leading to increased complexity and potential credit score issues. However, Fred argues that most consumers are unlikely to beat the guaranteed 2% cash back from basic cards, making it a less efficient strategy.

Fred explains that the cards with high annual fees often offer more attractive benefits, but these benefits are only worth it if the cardholder actively uses them. For example, a card with 4x rewards on dining but only 1x on pharmacies might seem appealing, but the lower rewards in other categories could offset the higher rewards in dining.

Fred encourages consumers to consider their own financial circumstances and choose a card that aligns with their financial knowledge and comfort level, rather than attempting to maximize every possible benefit.