How many dollar bills are in your wallet? Probably not many, but that doesn’t mean there isn’t a lot of potential money in your wallet. That’s because credit cards offer you a ton of varying rewards that are just as worthy of your money as cash.
Between cash back cards, miles cards, and other options, it can be difficult to choose. But as long as you know the benefits of each option, you’ll never be stuck without a card again. So which type of credit card should you choose?
Here are the differences between miles vs cash back credit cards and how to choose between them.
Cash Back Credit Cards and Their Advantages
A cash back credit card is a type of credit card that allows cardholders to earn rewards in the form of cashback. With most cash-back cards, you’ll earn a percentage back on everything you buy – whether it’s gas, groceries, or your morning coffee.
There are many benefits of a cash back credit card. These include rewards points, extended warranties, and more.
Using a cash back card can help you keep track of your spending and budget better since you’ll have a clear idea of where your money is going. For the best credit card cash back options, go here.
Advantages of Miles Credit Cards
Miles credit cards are a type of credit card that allows the cardholder to earn miles for every purchase that they make. These miles can be redeemed for travel expenses, such as airfare and hotel stays.
There are many benefits of a miles credit card. For starters, you can earn points for every dollar you spend which can be redeemed for airfare, hotels, and other travel expenses.
Additionally, most miles credit cards offer perks such as free checked bags, priority boarding, and annual travel credits. Another great advantage of miles cards is that they often have bonuses for signing up and spending a certain amount within the first few months.
Miles vs Cash Back: Choosing the Right Card for You
There are a few key things to consider when deciding between a cash back or miles credit card. The first is how you typically spend your money.
If you tend to spend a lot on travel then a miles card would be better suited for you so you can rack up points to put towards future trips. If you don’t travel often then a cash back card is probably the way to go since you can get a percentage of your spending back as cash.
Another thing to think about is what kind of perks you want from your card. Some cash back cards have great sign-up bonuses and other perks like cash back on gas and groceries.
Finally, consider what interest rate you’ll be paying. If you think you’ll carry a balance from month to month then a lower interest rate is probably more important to you than accumulating rewards points.
A Guide To Your Spending Habits
If you’re trying to decide between miles vs cash back credit cards, it depends on your spending habits and what you would use the rewards for.
If you travel often, a miles card would probably be a better choice. But if you don’t travel as much and you would rather get cash back on your purchases, then a cash back card would be a better option.
If this information helped you make an informed decision about credit cards, do check out our other articles about finances and making money!