• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Mortgages
    • Mortgage Insight
    • FHA Loans
    • Check Rates Now
    • Check Eligibility
  • Home Services
    • Home Security
    • Home Warranty
    • Solar
    • Roofing Quotes
  • Debt
    • Debt Insights
    • Debt Relief
    • Debt Relief Quiz
  • Insurance
    • Insurance Tips
    • Auto Insurance Quotes
    • Home Insurance Quotes
    • Life Insurance Quotes
  • Credit Cards
    • Travel Credit Cards
    • Cash Back Credit Cards
    • Credit Card Articles
  • Articles
  • Subscribe
Wise Money Life

Wise Money Life

Helping Consumers Make Wiser Financial Decisions

Should I Get a Credit Card with Miles or Cash Back?

Last Updated April 25, 2023 | Ad Disclosures | Editorial Disclosure

There are hundreds of credit cards out there. If you’re on the market for a new one you’ll likely want to choose a credit card that gives you advanced perks. Some credit cards will give you cash back, while other credit cards will offer you travel rewards (miles, points, etc).

woman holding credit card

All of this can be beneficial, but you need to decide which credit card is ultimately for you and which will, in the end, help you earn major rewards faster. Here are some of the factors you’ll want to keep in mind when shopping around for the right credit card.

TRENDING: See the Top Cash Back Rewards Credit Cards of 2023

Do You Even Travel?

Everyone can use cash back. So you can’t lose if you go with the cash back card. Your airline miles is a bit different though. While earning miles is nice, do you actually travel? If you don’t, or if you don’t travel by air, the airline miles may not be all that valuable to you. So while earning miles may sound nice, if you’re not much of an avid traveler it may be better to go with the cash back.

What is the Miles to Cash Ratio?

When considering a credit card that rewards you with miles you will need to determine the cash value of the miles. After all, you can use the cash back you receive from a cash back credit card and put it toward eventual airfare. This means for the credit card offering miles to be beneficial it has to offer you a bigger bang for your buck.

Now, determining the cash value of miles will vary some. It will depend on the airline, the flight, and even what kind of seat you’re purchasing. Realistically, you want the cash value of your mile to be about twice that of the cash back. There are available websites that will provide insights on finding out the exact value of miles for specific websites if you’re interested, but if a cash back credit card gives you 2% cash back on everything, you want the miles credit card to reward you with 4% in miles (or four cents worth of airfare for every dollar you spend on the credit card). If the value is similar, just go with the cash back. You’ll have more options and you’ll be able to use the cash back you earn on any airline.

Do Your Airline Miles Expire?

Unless you’re spending thousands and thousands of dollars on your airline credit card every month, it can take a good deal of time to earn enough miles to purchase a desirable flight. Due to this, you need to know if your airline miles expire.

TRENDING: Save Thousands on Auto Repairs – Get Your Extended Auto Warranty Quote in Seconds

There are two points of interest you’ll need to look here. First, do the earned airline miles expire while connected to your credit card. Some credit cards will allow you to build up “points” for every dollar spent, and then use the points to purchase airline miles (usually this is done with credit card that are not specific to one airline). If the points don’t expire when connected to your credit card, will the actual airline miles expire? For example, United Airlines miles expire, while Delta Skymiles do not. It is important to know this, because you don’t want your hard earned miles to disappear if not used.

The Right Credit Card For You

These are just some of the factors you want to keep in mind when looking around for the right credit card. Beyond miles and cash back though, always look at the interest rate, payment options, and other features of the card beyond benefits. This way, you can select a credit card that not only fits your rewards desires, but your personal financial needs as well.

Want to keep reading? See more credit card articles.

Filed Under: Credit Cards

sidebar

Blog Sidebar

Popular Articles

Maximizing the Benefits of Travel Credit Cards: Avoid Common Mistakes, Seize Opportunities

Understanding the Different Types of Retirement Accounts

Millennial Maze: Navigating Homeownership in Today’s Market

The Top Airport Lounges in the US and How to Get Access

The Wonderful World of Home Warranties: Unveiling Their Many Benefits

Mortgage Rates

Check Now

Insurance

Home Insurance
Auto Insurance
Life Insurance
Insurance Articles
Home Insurance Quotes
Auto Insurance Quotes
Life Insurance Quotes

Retirement Calculator

GO

Wise Money Polls

Poll: Which Financial Goal Are You Currently Prioritizing?

Footer

About Us

About Us
Contact Us
Ad Disclosures

Join Our Weekly Newsletter

Hi there. We already have you added to our newsletter.

Copyright © 2023 WiseMoneyLife.com

Privacy Policy and Terms of Use | Privacy Policy Notice - California | Ad Disclosures | Opt-out of Email


Important Disclosures: This site contains affiliate and partner links and may receive compensation for referrals or purchases made through our links. Contents of this website are copyrighted property of the owner of this site. All other trademarks, logos, and service marks (collectively the "Trademarks") displayed are registered and/or unregistered Trademarks of their respective owners.


Additional Disclosures: WiseMoneyLife.com has partnered with CardRatings for our coverage of credit card products. WiseMoneyLife.com and CardRatings may receive a commission from card issuers.