Miles & Points vs. Cash Back: What's the Best Option for You?

Get Cash Back Miles & Points vs. Cash Back: What's the Best Option for You?

Miles & Points vs. Cash Back: What's the Best Option for You?

Most major credit card companies offer a credit card with some rewards program to incentivize you to use that credit card for your day-to-day shopping. Whether they offer points that can be applied to specific merchants or a certain percentage of cash back on purchases, rewards can benefit the credit card user in many ways.

If you are shopping around for a new rewards credit card, you may be wondering to yourself: which is better for me, points vs. cashback? This DoNotPay guide will help walk you through the benefits of both points and cashback rewards programs, as well as offer a way to help you redeem your rewards on your credit card.

What Is the Difference Between Points and Cash Back?

Credit card rewards are a great bonus to consider when looking for a new credit card. However, it's important to understand as much as you can about the rewards program before diving in. While both points and cashback have their upsides, there are drawbacks as well. Here we will take a look at the pros and cons in comparing points vs. cashback.

The Pros and Cons of Points

Save money on airlines and hotelsOften higher annual fees
Earn bonus points at certain merchantsTakes longer to earn enough points for significant savings
Points are often more valuable than cash backSteeper learning curve than cash back rewards

The Pros and Cons of Cash Back

Flexible redemption, can be used in many different waysLess valuable than points
Earn bonus cash back at certain merchantsRewards won't be significant if you don't spend a lot on your credit card
Uncomplicated and easy to understandTend to have higher APRs

Should I Choose Points or Cash Back?

Whether credit card points or cashback will be best for you depends on your end goal. You may benefit most from a points credit card if you:

  • Often fly on major airlines
  • Regularly stay at hotels
  • Wish to take advantage of travel upgrades, such as free checked bags and lounge access

If you tend to travel less than a couple of times per year, a points credit card may not offer you much benefit. You may be better suited for a cashback credit card if you:

  • Wish to use your cashback right away
  • Use your credit care more for groceries, gas, and other everyday expenses
  • Want to pay lower annual fees

Whether you choose a points credit card or cashback credit card, be sure to familiarize yourself with the details of the rewards program you go with. By taking advantage of shopping at specified merchants, you can maximize your rewards earnings and quickly build up your points or cashback even as you spend.

How Do I Redeem My Rewards?

How you can redeem your credit card rewards will depend on the card company you use. However, these steps can get you started if you're not sure where to begin:

  1. Log onto your credit card account and navigate to the rewards section to redeem online.
  2. Call your credit card company's rewards line and ask customer service for help redeeming your points or cashback.
  3. Email your credit card company's customer service and ask them to redeem your rewards for you.

If you are unfamiliar with the process of redeeming credit card rewards, this task may seem daunting or uncomfortable. However, you don't have to try to learn how to complete this task on your own. By using DoNotPay to help you redeem your credit card rewards, you can be sure that you will quickly and effectively redeem your rewards without having to take any unnecessary steps. Follow the steps below to get going.

DoNotPay Can Help

If you are ready to redeem your points or cashback on your credit card, but you are not sure where to start, DoNotPay is here to get you started in just a few simple steps:

  1. Search for Cash Back on the DoNotPay website.


  2. Kick off the process to find the right app or website for you.


  3. Answer some specific questions so that we can help you start making money!


And that's it! DoNotPay will send you the best cash back options we can find and help you to start earning more cash back on your purchases.

What Else Can DoNotPay Do?

Are you interested in learning more about credit card rewards and how to redeem them? We can help you discover the many benefits of credit card rewards, including:

DoNotPay has been helping our customers make money in new ways for years. Not only do we have ways to help you save and find money, but we can help you with all kinds of everyday issues, legal and nonlegal alike. Our products are designed to quickly and easily help you find a solution to your problem without having to put in extra work. We can even help you:

Sign up for DoNotPay and get started on making your life easier.

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