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

1 February 2019

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Learn how rewards cards differ — and how to choose the right one.

You’ve likely encountered the range of ways providers reward you for your spending. Some cards offer cash back, while others reward you with miles or points. Your ideal card will depend on where you spend and how you want to redeem your rewards.

What’s in this guide

What are cashback, points and miles credit cards?
How do I choose what’s best for me?
Compare rewards cards
Pros and cons of cashback, points and miles cards

Tips to maximize your rewards
Bottom line
Frequently asked questions

What are cashback, points and miles credit cards?

All three credit cards fall under the family of rewards card, which allow cardholders to earn rewards on their overall spending or within specific categories, like travel, gas or business.

Your options often revolve around cash back, points or miles. While similar, these options differ in how much value you get from the categories you’re spending in and even how you redeem them.

Find your ideal rewards credit card

See our recommendation in two clicks.

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

Consider these questions when choosing which rewards credit card is best for you:

- Cashback cards in general offer the strongest rewards on everyday spending, like groceries, gas, dining or department stores.
- Points are generally earned for hotels, travel, dining or entertainment purchases.
- Miles are earned through travel cards or co-branded airline cards.
- Some cashback cards limit how much you can earn — such as 6% cash back at grocery stores on up to $6,000 a year, reverting to 1% back after that. This is especially true for cashback cards with rotating categories, where every quarter you earn the highest rewards on specific purchases.
- 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.
- Cashback cards offer the simplest rewards structure — generally, you know how much you get.
- Points are typically worth from less than a penny to up to two cents each, depending on how you redeem them.
- Miles can be worth from less than a cent to a few cents.
- Cashback cards generally offer low signup bonuses of up to $200. You can sometimes get more than that if the card requires an annual fee.
- Many points cards offer signup bonuses of up to $500, but the spending criteria to earn the bonus might also be higher.
- Miles cards offer high signup bonuses of up to $500 on average, and they also typically require a higher spending ceiling to clear the bonus.
- Many cashback cards offer an intro APR period on balance transfers, which can be ideal if you’re paying high interest on another card and want to consolidate your debt.
- Points and miles cards don’t often offer intro APR periods on balance transfers.
- Cashback cards often come with an intro APR period on purchases. It can help you earn cash back on large purchases and save money on unnecessary interest if you pay it off before your intro expires.
- Points and miles cards generally don’t offer intro APR periods on purchases.
- Cashback cards can come with perks like purchase protection, zero fraud liability and extended warranties.
- Points cards can offer the same perks along with complimentary Wi-Fi for hotel brands or complimentary airport lounge access for travel cards, TSA PreCheck or Global Entry fee credits and more.
- Miles cards usually offer the strongest travel perks, which can include free checked bags on your flights, priority boarding, airline fee credits and lounge access.
- If a cashback card requires an annual fee, it’s typically no more than $95. Annual-fee cards tend to come with stronger cashback rates and higher signup bonuses.
- Annual fees for points cards can range from $0 to $450 or more. Generally, the more the card costs, the more perks and benefits you get.
- Miles cards can also range from $0 to $450 or more. Like points cards, you typically get better perks and benefits the more you pay for the card.
- Cashback cards are poor travel companions, charging foreign transaction fees equal to 3% of each transaction.
- Not all points cards charge foreign transaction fees. In general, cards focused on travelers forgo these fees.
- Miles cards typically offer no foreign transaction fees, although you will find a few that do. Carefully read the card’s terms, especially if you travel often and want to use your card abroad.
- Reward cards tend to have higher interest rates of up to 26% variable, depending on your creditworthiness. Try to pay your statements on time to avoid offsetting your rewards with unnecessary interest — or losing them altogether.

Compare two cards: cash back vs. points

Blue Cash Preferred® Card from American Express

Earn a $200 statement credit after you spend $1,000 in purchases on your new card within the first 3 months.
6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) - that means spending $60 a week at U.S. supermarkets could earn over $180 back per year.
3% cash back at U.S. gas stations. 1% cash back on other purchases.
You spoke, we listened. Over 1.6 million more places in the U.S. started accepting American Express® Cards in 2018.
Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
$95 annual fee.
Terms apply.
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American Express® Gold Card

Earn 35,000 Membership Rewards® Points after you spend $2,000 on eligible purchases with your new card within the first 3 months.
Earn 4x Membership Rewards® points at U.S. restaurants. Earn 4x Membership Rewards® points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1x).
Earn 3x Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
Earn up to $10 in statement credits monthly when you pay with The Gold Card at Grubhub, Seamless, The Cheesecake Factory, Shake Shack, and Ruth’s Chris Steak House. This is an annual savings of up to $120. Enrollment required.
$100 airline fee credit: up to $100 in statement credits per calendar year for incidental fees at one selected qualifying airline.
Choose to carry a balance with interest on eligible charges of $100 or more.
No foreign transaction fees.
Annual fee is $250.
Terms apply.
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More info

Compare top rewards credit cards

Updated April 24th, 2019

Name	Welcome Offer	Rewards	Annual Fee
Chase Sapphire Preferred® Card	60,000 points after spending $4,000 in the first 3 months	2x points on travel and dining. 1x points on all other purchases	$95	Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months.	Apply now View details	Compare	loading Fetching your data...
Chase Freedom Unlimited®	3% cash back on all purchases in your first year up to $20,000 spent, then unlimited 1.5% cash back on all purchases	3% cash back on all purchases in your first year up to $20,000 spent, then unlimited 1.5% cash back on all purchases	$0	Earn 3% cash back on all purchases in your first year up to $20,000 spent. After that earn unlimited 1.5% cash back on all purchases.	Apply now View details	Compare	loading Fetching your data...
Chase Freedom®	$150 cash back after spending $500 in the first 3 months	5% back in rotating categories up to $1,500 combined each activated quarter, then 1% after that and on all other purchases	$0	0% intro APR for 15 months from account opening on purchases and balance transfers.	Apply now View details	Compare	loading Fetching your data...
Chase Sapphire Reserve®	50,000 points after spending $4,000 in the first 3 months	3x points on dining and travel after earning your $300 travel credit. 1x points on all other purchases	$450	Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months.	Apply now View details	Compare	loading Fetching your data...
Blue Cash Everyday® Card from American Express	$150 statement credit after spending $1,000 in the first 3 months	3% at US supermarkets on up to $6,000 per year, then 1%. 2% at US gas stations and select US department stores and 1% on all other purchases	$0	Earn a $150 bonus statement credit after you spend $1,000 on purchases in the first 3 months. Rates & Fees	Apply now View details	Compare	loading Fetching your data...
U.S. Bank FlexPerks® Travel Rewards® Card	25,000 points after spending $2,000 in the first 4 months	2x points on gas, groceries and airlines, whichever you spend the most on each month, 2x points on cell phone services and charities and 1x points on all other purchases	$0 intro annual fee for the first year ($49 thereafter)	Earn 25,000 enrollment FlexPoints worth $375 in travel after spending $2,000 in the first 4 months.	Apply now View details	Compare	loading Fetching your data...
U.S. Bank Cash+™ Visa Signature® Card	$150 after spending $500 in the first 90 days	5% on up to $2,000 each activated quarter on two categories combined (1% after), 2% on one everyday category and 1% on all other purchases	$0	When you spend $500 on your card within the first 90 days, you’ll receive a $150 cash back bonus.	Apply now View details	Compare	loading Fetching your data...
Blue Cash Preferred® Card from American Express	$200 statement credit after spending $1,000 in the first 3 months	6% at US supermarkets on up to $6,000 per year, then 1%. 3% at US gas stations and select US department stores and 1% on all other purchases	$95	Earn $200 bonus cash back after you spend $1,000 on purchases in the first 3 months. Rates & Fees	Apply now View details	Compare	loading Fetching your data...
American Express Cash Magnet® Card	$150 after spending $1,000 in the first 3 months	Earn unlimited 1.5% cash back on your purchases	$0	Earn a $150 statement credit after you spend $1,000 or more in purchases with your new card within the first 3 months of card membership. Rates & Fees	Apply now View details	Compare	loading Fetching your data...
American Express® Gold Card	35,000 points after spending $2,000 in the first 3 months	3x points on airfare booked directly with airlines; 4x points at US restaurants; 4x points at US supermarkets on up to $25,000 per year in purchases (then 1x points)	$250	35,000 bonus Membership Rewards® Points when you spend $2,000 in the first 3 months Rates & Fees	Apply now View details	Compare	loading Fetching your data...
Barclaycard Arrival® Plus World Elite Mastercard®	70,000 miles after spending $5,000 in the first 90 days	2x miles on all purchases	$0 intro annual fee for the first year ($89 thereafter)	Enjoy 70,000 bonus miles after spending $5,000 on purchases in the first 90 days.	Apply now View details	Compare	loading Fetching your data...
Hilton Honors American Express Ascend Card	125,000 points after spending $2,000 in the first 3 months	12x points on Hilton Portfolio spending, 6x at US restaurants, US supermarkets and US gas stations, 3x on all other purchases	$95	Earn 125,000 Hilton Honors™ Bonus Points after you spend $2,000 or more in purchases with your new card within the first 3 months of card membership. Rates & Fees	Apply now View details	Compare	loading Fetching your data...
Hilton Honors American Express Card	75,000 points after spending $1,000 in the first 3 months	7x points on Hilton Honors purchases, 5x at US restaurants, US supermarkets and US gas stations, 3x on all other purchases	$0	Earn 75,000 Hilton Honors™ Bonus Points after you spend $1,000 in purchases on the card within your first 3 months of card membership. Rates & Fees	Apply now View details	Compare	loading Fetching your data...
HSBC Cash Rewards Mastercard® credit card	3% cash back bonus on up to $10,000 in the first 12 months, then 1.5%	3% cash back on up to $10,000 in the first 12 months, then 1.5% on all purchases	$0	Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees.	Apply now View details	Compare	loading Fetching your data...
Blue Delta SkyMiles® Credit Card from American Express	10,000 miles after spending $500 in the first 3 months	2x miles at US restaurants and on purchases made directly with Delta and 1x miles on all other purchases	$0	Earn 10,000 bonus miles after spending $500 in purchases on your new card in your first 3 months of card membership. Rates & Fees	Apply now View details	Compare	loading Fetching your data...
Gold Delta SkyMiles® Credit Card from American Express	30,000 miles after spending $1,000 in the first 3 months and a $50 statement credit after you make a Delta purchase in the first 3 months	2x miles on Delta purchases and 1x miles on all other purchases	$0 intro annual fee for the first year ($95 thereafter)	30,000 bonus miles after you use your new card to make $1,000 on purchases within the first 3 months and a $50 statement credit after you make a Delta purchase in the first 3 months. Rates & Fees	Apply now View details	Compare	loading Fetching your data...
Luxury Card Mastercard® Black Card™	N/A	1x points on all purchases with 2% point value when you redeem for airfare and 1.5% for cash back	$495	Receive an annual $100 air travel credit toward flight-related purchases including airline tickets, baggage fees, upgrades and more.	Apply now View details	Compare	loading Fetching your data...
Luxury Card Mastercard® Titanium Card™	N/A	1x points on all purchases with 2% point value when you redeem for airfare and 1% for cash back	$195	Enjoy unique excursions, privileged access to exclusive events and insider opportunities.	Apply now View details	Compare	loading Fetching your data...
Luxury Card Mastercard® Gold Card™	N/A	1x points on all purchases with 2% point value when you redeem for airfare or cash back	$995	Earn 2% point value when redeemed for airfare or cash back through the Luxury rewards program.	Apply now View details	Compare	loading Fetching your data...
ABOC Platinum Rewards Credit Card	Earn $150 statement credit after you spend $1,200 on purchases within the first 90 days from account opening	Earn 1x rewards points on all purchases and 5x points in quarterly rotating categories on up to $1,500 each quarter you activate, then 1x points	$0	Earn $150 in statement credit after you spend $1,200 on purchases within the first 90 days from account opening.	Apply now View details	Compare	loading Fetching your data...
Credit One Bank® Visa® Cash Back Rewards	N/A	1% cash back on all purchases or in categories based on Credit One Bank’s discretion	$0 to $99	Get 1% cash back rewards on eligible purchases.	Apply now View details	Compare	loading Fetching your data...
Credit One Bank® Unsecured Platinum Visa®			$0 to $99	Seeing if you pre-qualify is fast, easy and secure.	Apply now View details	Compare	loading Fetching your data...
Official NASCAR® Credit Card from Credit One Bank®		Get 1% cash back rewards on eligible purchases and double cash back rewards at the NASCAR.com Superstore	$0 to $99	Get 1% cash back rewards on eligible purchases and double cash back rewards at the NASCAR.com Superstore.	Apply now View details	Compare	loading Fetching your data...

Compare up to 4 providers

Pros and cons of cashback, points and miles cards

Cashback cards

Pros

Simple rewards structure and redemption.
Easy to know rewards values beforehand.
Intro APR periods on purchases and balance transfers.
Annual fees that range from $0 to $95.

Cons

Limited redemption options.
Can take one or two billing cycles to get your rewards.
Foreign transaction fees.
Lower signup bonuses.

Points cards

Pros

Highest redemption flexibility.
Transfer points to another account.
Larger signup bonuses.
Often no foreign transaction fee.

Cons

Points values differ by redemption option.
Can come with annual fees of up to $450.
Rare to find intro APR periods on balance transfers and purchases.

Miles cards

Pros

Solid redemption flexibility.
Higher signup bonuses.
Typically no foreign transaction fees.

Cons

Point values vary.
Annual fees as high as $450.
Rare to find intro APR periods on balance transfers and purchases.

Tips to maximize your rewards

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, while on flights, use the card with the strongest miles or points 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 like free checked bags, priority boarding and more.
Keep an eye on the cap. If you opt for a cashback card or points 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.

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.
Top 1.5% cashback credit cards

Frequently asked questions

Kliment Dukovski

Kliment Dukovski is a writer for finder.com, working on credit cards, money transfers, home loans and more. He aims to deliver honest and accurate information to help you make the right financial decisions. Before joining Finder, he ghostwrote guides and articles on foreign exchange, stock market trading and cryptocurrencies. When he's not writing about finance-related subjects, he writes sci-fi.

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

Learn how rewards cards differ — and how to choose the right one.

What’s in this guide

What are cashback, points and miles credit cards?

Find your ideal rewards credit card

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

Compare two cards: cash back vs. points

Blue Cash Preferred® Card from American Express

Blue Cash Preferred® Card from American Express

American Express® Gold Card

American Express® Gold Card

Compare top rewards credit cards

Compare up to 4 providers

Pros and cons of cashback, points and miles cards

Cashback cards

Pros

Cons

Points cards

Pros

Cons

Miles cards

Pros

Cons

Tips to maximize your rewards

Bottom line

Frequently asked questions

Kliment Dukovski

Ask an Expert

Guides

Brands

Balance Transfer Calculator

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

Learn how rewards cards differ — and how to choose the right one.

What’s in this guide

What are cashback, points and miles credit cards?

Find your ideal rewards credit card

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

Determine what you spend the most money on.

Figure out how much money you spend on particular categories.

Consider how much your rewards will be worth.

Determine whether the card offers a welcome offer or signup bonus.

Consider if you need to transfer a balance to your new card.

Think about whether you're planning to make a large purchase.

Look into what else can you get with the card.

Decide if you want to pay an annual fee.

Keep in mind how often you travel outside the US.

Think about whether you're looking for a low interest rate.

Compare two cards: cash back vs. points

Blue Cash Preferred® Card from American Express

American Express® Gold Card

Compare top rewards credit cards

Compare up to 4 providers

Pros and cons of cashback, points and miles cards

Cashback cards

Pros

Cons

Points cards

Pros

Cons

Miles cards

Pros

Cons

Tips to maximize your rewards

Bottom line

Frequently asked questions

Which type of credit card is best for everyday spending?

Which type of credit card offers the highest signup bonus?

Which type of card is best for travel?

Kliment Dukovski

Ask an Expert

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