Miles, Points, Or Cash Back Credit Card: Which One Should You Get?


The type of rewards you earn through your credit card can have a big impact on your spending and finances. This is why it is important to consider what kind of rewards are the best for the lifestyle you lead to get the full Value of cash back credit cards and not just aimlessly spend money to earn rewards that are useless.

There are three types of rewards you can earn from your credit card: miles, points, and cash back. Each has their own perks and uses. These are their differences and the people who can find each reward type the most useful:

Cash Rebate Cards

As the name suggests this type of credit card offers holders a chance to get rebates in cash for every purchase that they make. This can be used for just about any everyday purchases like gasoline, groceries, medicines from the pharmacy, and even monthly utility bills. This form of credit card typically offers rebate of around 1 – 4% of the total monthly or annual purchase.

Your rebate may come in the form of an annual or monthly check issued by the bank, banks may deposit it directly to your savings or checking account, and some banks also allow clients to use the amount against their credit card statements.

Who Benefits The Most: This form of reward is best for people who want simplicity in their life. No fuss and hassle of getting the rewards and you can earn money back for almost every type of purchase you make with just one cash back credit card.

Point Earning Cards

Points are trickier than the basic cash rebate because banks have different terms when it comes to maximizing point rebates. These cards generally work much like those that offer cash rebates, but instead of cash you get rewarded by points. This may come in the form of gift certificates for various shops and restaurants.

The best way to earn points is to check your bank’s affiliation with merchants and special bonuses and offers they have. Some banks offer up to 4% point rebate when you shop at a certain store which gives you more reward points for every purchase.

Who Benefits The Most: People who have a preference for certain shops that are also affiliated with their bank stand to earn the most with this form of reward system. Those who don’t particularly need the flexibility of cash and enjoy little perks of gift certificates will surely appreciate this system.

Mileage Accumulating Cards

This type of point system is one that comes with perks of earning miles that are used for booking flights for free. People can use this card every time type book a flight or a hotel to maximize their point earning, but this type of card also comes with huge annual fees, so keep that in mind.

Who Benefits The Most: Those who travel frequently stand to benefit the most from mileage cards because they earn points as they travel and also receive freebies for their travel.

The true value of cash back credit cards depends on your lifestyle and how often you use your card. There is no one card that is perfect for everyone, but there is one that will meet your needs the most.
Know the true Value of cash back credit cards by comparing it to the other cards available for you. Join the discussion at

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