Cash Back or a Miles Credit Card? Which is Best for You

What is the better option as a reward: a cash back credit card or a miles credit card? It is a question that many people have been debating for years, and it really depends on who you are as a person, for the most part. However, there are some important things to consider before you make a decision either way:

Travel Rewards

Earning and redeeming your travel rewards might seem complicated, but it can also be extremely fulfilling and allow you to do things you have not done before. Most travel rewards will offer up bigger bonuses and rewards than other types of rewards because they partner with specific names and brands.

Even better, travel rewards tend to give more value per dollar than other types of rewards. You will sometimes get up to three or four cents per point, which is extremely high, especially when comparing it to cash back. Even better, you will sometimes get higher rewards or perks when you do check into your hotel, airline, or car service.

You will have to pick and choose the credit cards that will give you the best options — there are many that have no blackout dates. Of course, it can sometimes be difficult to find an option that will fit your wants and needs. If you travel with a group or you are looking for shorter flight rates, you may struggle to find something.

Cash Back

Sometimes cash back may be a good option, especially when you are not a traveler or do not shop at any particular store. Many cash back cards are free, while other reward cards have high annual fees. However it is very basic and will usually only give you 1 cent per 1 reward point.

Cash back points normally never lose their value, nor will they expire on most programs. You can store them so that you can get larger amounts of money to pay off some of your bills.

It depends on what you want to get out of your credit cards — do you want money to pay your bills or do you want experiences? There are plenty of options out there. Consider whether you want to use them quickly or if you want to save up for some time, as saving will allow you to travel farther.