Cashback vs. points vs. miles: What type of rewards card is best for me?

You’ve likely encountered a range of ways providers reward you for spending, whether it be with cash back, rewards or miles. While these are all similar rewards options, they differ in how much value you get from the categories you’re spending in and even how you redeem them.

How do I choose between a cashback, miles or points credit card?

When choosing whether to go with cashback, points or miles, consider the following:

	Cashback	Points	Miles
Spending categories	Strongest rewards on everyday spending, such as groceries, gas, dining or department stores, with new categories such as streaming services introduced recently	Good for hotels, travel, dining or entertainment purchases	Best for general travel or airline travel
Spend limitations	Some cashback cards limit how much you can earn, especially cards with rotating categories	It’s rare to find a points card that comes with similar restrictions	Miles cards generally don’t put a cap on the miles you can earn
Rewards value	Simple rewards structure — generally, you know how much you get	Typically worth from less than a penny to up to two cents each, depending on how you redeem them	Worth from less than a cent to a few cents.
Welcome offer	Generally offer low signup bonuses of up to $200	Offer signup bonuses of up to $500, but the spending criteria to earn the bonus might also be higher	Offer high signup bonuses of up to $500 on average, and they also typically require a higher spending ceiling to clear the bonus
Intro APR on balance transfers	Many cashback cards offer an intro APR period on balance transfers	Usually don’t offer intro APR periods on balance transfers	Usually don’t offer intro APR periods on balance transfers
Intro APR on purchases	Often come with an intro APR period on purchases	In general, don’t offer intro APR periods on purchases	Generally don’t offer intro APR periods on purchases
Additional perks	Purchase protection, zero fraud liability and extended warranties	Same perks plus complimentary Wi-Fi for hotel brands or complimentary airport lounge access for travel cards, TSA PreCheck or Global Entry fee credits and more	Strongest travel perks, such as free checked bags on your flights, priority boarding, airline fee credits, lounge access and a companion pass
Annual fee	Most cards have no annual fee, but if they do it’s typically no more than $95	Range from $0 to $450 or more	Range from $0 to $450 or more
Foreign transaction fee	Often charge foreign transaction fees equal to 3% of each transaction	In general, cards focused on travelers forgo these fees	Typically offer no foreign transaction fees

APR

Reward cards tend to have higher interest rates of up to 26% variable, depending on your creditworthiness.

Why choose a rewards card?

If you have a good credit score or higher, getting a rewards card is definitely worth considering. You get access to premium credit cards that reward your spending in a variety of categories, including groceries, gas, dining or travel.

Compared to non-reward credit cards, you also get:

• Bigger signup bonuses. Depending on what kind of card you get, you can earn a signup bonus worth $150 for most cashback cards to more than $1,000 for airline and travel cards.
• Intro APR period. Intro APR period on purchases and balance transfers is a common perk for cashback cards. But you can also find some points cards with an intro APR period. Travel cards with an intro APR period are rare.
• Brand-specific perks. Get free checked bags on an airline, lounge access, priority boarding, or get free reward nights at a hotel brand or reach an elite status tier by being a cardmember.

Compare top rewards credit cards

If you have narrowed your options to cash back or points, consider these cards and earn accelerated rewards on your purchases.

Tips to maximize your rewards

Getting a rewards credit card can boost your card’s value just by using it. Here are some tips to get even higher value from your card:

• Use multiple cards. More than one card can help you optimize your reward earnings. For example, when dining, use the card that earns the highest cash back or points at restaurants. When flying, use the card with the strongest miles rewards.
• Combine points. Some credit card programs, like the Delta suite of cards or Chase cards with Ultimate Rewards, offer the highest value if you combine cards within the program. For example, only one Delta card offers 2x miles on dining. Use this card at restaurants, and use another Delta card on flights for perks such as free checked bags, priority boarding and more.
• Keep an eye on the cap. If you opt for a cashback card, make sure you know any limits on your earnings. If you reach the cap, use another card for higher rewards, if you have one.
• Pay your balance on time. If you don’t, you could end up paying late fees, taking on penalty interest rates and potentially losing your rewards altogether.

Compare two cards: cashback vs. points

Citi® Double Cash Card

Citi® Double Cash Card

• Earn cash back twice. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
• To earn cash back, pay at least the minimum due on time.
• Balance Transfer Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% – 23.99%, based on your creditworthiness.
• Balance Transfers do not earn cash back.
• If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
• There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater.
• The standard variable APR for Citi Flex Plan is 13.99% – 23.99% based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
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Citi Rewards+℠ Card

Citi Rewards+℠ Card

• The Citi Rewards+℠ Card - the only credit card that automatically rounds up to the nearest 10 points on every purchase - with no cap.
• Earn 15,000 bonus points after you spend $1,000 in purchases with your card within 3 months of account opening; redeemable for $150 in gift cards at thankyou.com
• 0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will be 13.49% - 23.49%, based on your creditworthiness. Balance transfer fee — either $5 or 3% of the amount of each transfer, whichever is greater.
• Earn 2X ThankYou® Points at Supermarkets and Gas Stations for the first $6,000 per year and then 1X Points thereafter. Plus, earn 1X Points on All Other Purchases.
• The standard variable APR for Citi Flex Plan is 13.49% - 23.49%, based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
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Bottom line

Rewards credit cards can help you earn cash, miles or points on your everyday spending or within specific categories that match your lifestyle.

Cashback cards can be a better choice for rewards on everyday spending at grocery stores, gas stations, restaurants or department stores. Points cards often focus on dining, travel or entertainment purchases. And miles cards typically revolve around travel — airlines, hotels and more.

Before you settle on a rewards card, look into other credit cards to find the best that meets your habits and budget.

Frequently asked questions

• Which type of credit card is best for everyday spending?

  Cashback credit cards often offer the strongest rewards on groceries, gas, dining or at department stores.

• Which type of credit card offers the highest signup bonus?

  In general, points and miles cards offer higher signup bonuses than cashback cards. Also, if the card requires an annual fee, you might see a higher signup bonus.

• Which type of card is best for travel?

  Points or miles cards are generally designed for those who travel often and want to earn rewards on airfare, hotel stays, rental cars and more.