There’s no easy answer to this question since it depends on a few different factors, like what type of card you’re using and what type of rewards you value more. If you’re trying to figure out which is better for you, ask yourself these questions:
1. What type of card are you using?
If you’re using a cash back card, then obviously cash back is going to be the better option. But if you’re using a miles card, it really depends on how you plan to use those miles. If you’re a frequent flyer, then miles may be more valuable to you. But if you don’t travel often, cash back may be the better option.
2. What type of rewards do you value more?
Some people value cash back more because it’s more versatile. You can use it to pay off your credit card bill, buy groceries, or anything else you want. Miles, on the other hand, can only be used for travel. So if you love to travel, miles may be more valuable to you. But if you don’t travel often, cash back may be the better option.
3. What’s the earning potential of each type of rewards?
This one is a little more complicated. In general, cash back cards have higher earning potential than miles cards. That’s because you can usually earn more cash back on everyday purchases like groceries and gas. But there are some miles cards that have high earning potential too, like cards that offer bonus miles for travel spending. It really depends on the card you’re using.
4. What are the redemption options for each type of rewards?
With cash back, you usually have more redemption options. You can often use your cash back to pay off your credit card bill, buy groceries, or get a statement credit. With miles, you usually have to redeem them for travel. So if you want more flexibility, cash back may be the better option.
5. What are the restrictions on each type of rewards?
Some cash back cards have restrictions on how you can use your cash back. For example, you may have to use it to pay off your credit card bill or get a statement credit. And some miles cards have restrictions on how you can redeem your miles. For example, you may have to book your travel through the card’s travel portal. So if you want more flexibility, cash back may be the better option.
At the end of the day, there’s no easy answer to the question, “Is cash back or miles better?” It really depends on your individual circumstances. If you’re not sure which is better for you, try to figure out which type of rewards you value more.
Other related questions:
Q: Is it better to have points or cash back?
A: It depends on your spending habits and what you value more. If you spend a lot of money on credit cards, then you may want a card that offers cash back. However, if you only use your credit card for occasional purchases, then you may be better off with a card that offers points.
Q: Are miles better than cash?
A: Miles are often better than cash, as they can be used to book travel or purchase items without having to worry about currency exchange rates. Additionally, miles can sometimes be transferred to other loyalty programs, allowing you to redeem them for even more valuable rewards.
Q: What’s the difference between points miles and cash back bonuses?
A: Miles are often earned through airline-specific credit cards and can generally only be redeemed for travel on that airline. Cash back bonuses are earned through a variety of credit cards and can be redeemed for cash, merchandise, or travel.
Q: Are cash backs worth it?
A: Cash back rewards programs can be a great way to save money, but they are not always the best option. Sometimes, it can be better to use a different type of rewards program, such as a points program.
Bibliography
- Cash Back vs. Miles: Which Type of Credit Card Is Best For You?
- Cash Back vs Miles: Which Is Better? | MoneyGeek.com
- Cash Back vs. Travel: How to Choose Credit Card Rewards
- Cash Back vs. Points And Miles Credit Cards – Bankrate
- Understanding Cash Back vs. Airline Miles – Investopedia
- Cash Back vs. Miles: How to Choose the Best Rewards Strategy