Miles and cash-back credit cards are one of the best credit cards on the market. The struggle between Miles & Cash-Back credit card is not easy to solve. Cashback is the most universal of all gifts. However, if you travel frequently, earning miles will earn you free trips and other travel rewards. Whether you choose a credit card with cash back or a credit card with a travel reward, it depends on your spending habits and how you want to spend your rewards.
Cash-Back Credit Cards | Cash Back & Miles Credit Card Rewards
With a Cashback credit card reward, you pay a certain percentage of money for all your purchases. For example, you can earn cash-back rewards of 2% for all your credit card purchases, which means you earn $ 2 cash for every $ 100 you spend on your credit.
If you are willing to spend a lot of money on these higher-earning categories, you can increase your rewards earned.
Cash-Back does not always mean cash. While some credit cards can reward your money as a deposit to your bank account or as a mailed check, you can earn your reward as a statement credit with most of the cash back credit cards.
For example, you have a $ 100 balance and then you redeem your reward of a statement credit of $ 20, your unpaid balance will be $ 80 after the statement credit is enforced. Be sure to note that you cannot use statement credit as payments to your account.
If you are not a big spender, Cashback reward credit cards are the best choice. You have to spend more than $ 9,000 to earn enough travel so that this card will be worth it.
What Makes a Travel Credit Card Worth it? | Cash Back & Miles Credit Card Rewards
For those who travel frequently, travel credit rewards may be the best choice because they tend to pay higher rewards for Travel purchases made with credit cards.
When traveling abroad, credit cards with travel rewards may be a better choice, especially if you choose a credit that is not charged for foreign transactions fee. Other credit cards charge up to 3% for transactions that you make in other currencies. Even flights purchased by non-US airlines can be operated in different currencies and are charged for foreign transactions fees. Using a travel rewards credit card will not only save you currency costs but also gives you the opportunity to win more rewards.
If you hold a credit card for longer, you have to spend more to justify its storage. Travel credit cards offer large first-year Signup bonuses that make the card more valuable than the cashback credit card.
Travel rewards credit cards can offer other benefits that exceed rewards and increase credit card benefits. Free check-in bags, annual travel credit, companion tickets, priority boarding, access to airport lounges and trip cancellation insurance are often benefited on travel reward credit cards. In addition, people who travel with you can take advantage of this benefit, usually when you book their trip with your credit card.
Which is the best?
Comparing miles and cashback rewards may be difficult. The dollar is a dollar, no matter what credit card you have. The number of miles needed to redeem rewards depends on the credit card or your frequent flier program.
Most of the cashback credit cards are quite simple. Even those who have a tiered reward system can be easier to use than many Travel rewards credit cards. To get the most out of your travel rewards credit card, you need to know the details of your reward program. You need to know how to maximize your rewards, how to use other credit card perks, and how to redeem rewards, which includes black-out dates and booking instructions.
If you are a big traveler, you will find a lot of value in travel rewards credit cards. If not, most other users will benefit from the versatile cash rewards credit card.