Which credit card reward is best: travel points or cash back? | The Tylt
You want your credit card to work for you. The idea of getting miles to put toward seeing the world and being the envy of your Instagram feed is certainly appealing. But there’s plenty to recommend around getting some money back. That’s like a universal gift certificate. Which credit card reward do you like the most?
Which credit card reward is best: travel points or cash back?
Whatever rewards program you prefer, it's best to make an informed decision.
Getting points or miles as a reward can mean more than just gradually accruing discounts on travel. Many cards offer additional discounts or bonuses such as free baggage or a better price for car rentals. As with any card, education and comparison shopping is a must. Miles and points aren’t a uniform amount across all cards.
Big welcome bonuses and annual fees tend to lead to big perks. This plays very much in favor of points and miles cards.
The advantage of getting cash back is pretty self-explanatory: It’s money. Redeeming points can be confusing, while cash is straightforward. It’s easy to understand—and versatile. Simple as it can be, it’s still important to see what’s out there and learn all the details regarding welcome bonuses and other additional perks, not to mention any fees.
Cash back is usually awarded in the form of a statement credit. The "cash back" is generally applied to your credit card statement to pay off charges instead of being issued as a check. For example, if during the course of a month you made $100 in purchases, with a 2% back credit card you would have $2 in statement credit. That way, as soon as the rewards are credited to your account, you will be able to lower your bill by that $2.