Cashback, Miles, Or Points? Choosing A Suitable Credit Card For You


When looking for Millennia credit card options, you may come across cards that give incentives in the form of cashback, miles, or reward points. Credit cards that earn points, like IDFC FIRST Bank credit cards, may hook you with their promises of aspirational rewards. Still, cashback cards make it simple to comprehend how you earn rewards. 


How do you choose between flexible points, miles, and cashback rewards? Which has more advantages? How do I make this call? 


Well, there is no sole appropriate response to this query. Your circumstances, spending habits, preferred incentive types, and, to some extent, your level of commitment to learning how to use rewards will all influence the optimal course of action for you. 

Credit Card Points and Miles: What Are They?


When going for a ‘new credit card apply’, you get the option to choose the one with points and miles function. These offer you rewards for your purchases and let you use your credit card rewards in multiple ways. 


Each card has different options for redemption. However, consumers who wish to cut costs on travel are the target market for points and miles cards. 


Some point and mile earning cards offer generic rewards, allowing you to use them to pay for any kind of travel and for goods, gift cards, and statement credits. In case you were curious, “points” and “miles” are equivalent terminology that largely functions the same. 

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What is Credit Card Cashback


Every time you make an eligible purchase, your credit card uses an algorithm to generate cash back rewards. In general, cashback is a superior option for those looking for simplicity and adjustable incentives on regular purchases. 


Credit cards with cashback rewards give you a portion of your purchases in cash back, with some cards giving you more cash back in some areas than others. 


For instance, some cashback cards give a flat 1.5% to 2% of your purchases a cash rebate. Others still provide bigger bonus benefits in fixed or recurring categories (often ranging from 3% to 5% back). 

Cashback Vs Miles Vs Points: Which One To Choose?


You should generally choose a points card if you travel frequently. Frequent travellers find considerable satisfaction in optimising their redemptions and making the most of travel-related benefits. 


A hotel or airline card may be quite valuable if you are strongly loyal to a specific hotel or airline. Otherwise, a rewards card with a wide range of merchant redemption options will give you additional redemption choices.


However, for those looking for a rewards credit card charging zero annual fee, a cashback reward card is for you! Given all the options, it’s best to choose a credit card with a rewards point system that lets you convert the points to make any purchase.


Ultimately, it all depends on how you intend to use the credit card and its rewards. 

Ending Note


You must understand your type of cardholder and the type of reward structure that most closely fits your spending habits to decide whether a card is better for you—cash back, points, or miles. Remember that you aren’t always forced to pick between rewards and cash back. 

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For those who know the credit card and debit card difference, credit cards are comparatively better. So, why not make the most of it by choosing the one with the best rewards system? So, try a few different credit cards to optimise the rewards.