Credit Cards with rewards: is it Worth Betting on Cashback or Miles?

Money Back or Miles Ahead? Find the Right Card for You

Nowadays, not using a credit card with rewards almost feels like leaving money on the table. With every purchase, whether at the supermarket, pharmacy, or that Saturday night delivery, we can get something in return. But then comes the doubt: what pays off more, Cashback or Miles? And is it really worth getting into this?

If you’ve also found yourself thinking about this while browsing credit card comparison websites or felt unsure when offered that “irresistible” bank deal, this text is for you.

Let’s talk directly, without complications, about how these two types of rewards work and which one might make more sense for your life.

Cashback: guaranteed return, no headache

Let’s start with the easiest one to understand: cashback. The name says it all, it’s literally money back. You make purchases with your card and receive a percentage of the amount spent as a credit on your bill or even in your account.

The big advantage here is the simplicity. No need to think about airline tickets, redemption points, or staying on top of specific dates to enjoy the benefits.

It’s money coming back into your pocket, straight and simple. And the best part: you use it however you want, whether to pay other bills, invest, or even buy that treat you’ve been wanting.

That’s why cashback is ideal for those who like practicality and want more immediate benefits. You don’t need to travel to take advantage. You buy, get a percentage back, end of story.

Miles: a whole world for travel lovers

Now, if your thing is traveling, or if you plan to do that more often, miles can be a great investment. Unlike cashback, which gives you money back, miles can turn into airline tickets, flight upgrades, hotel nights, car rentals, and even exclusive experiences.

The strong point of miles is the value they can have. With the right promotions or smart redemptions, miles are worth a lot more than the equivalent cashback amount.

With good planning, you can take trips that would cost a fortune without paying almost anything, just by using the points you’ve earned over the months.

But here’s the catch: the world of miles requires more attention. You need to keep an eye on promotions, understand the loyalty programs, know when to transfer points, and avoid letting them expire. In other words, it’s a game for those who like to research, compare, and sometimes get smart with strategy.

Which one is more worth it?

The short answer? It depends on your profile. The more honest answer? It depends on your lifestyle, your goals, and even how involved you’re willing to get with the world of credit cards.

If you’re the type who prefers practicality, wants quick results, and doesn’t have time (or patience) to keep track of mileage programs, cashback will probably make you happier. It works like a “discount” on your monthly purchases, no overthinking required.

Now, if traveling is one of your priorities and you’re willing to learn a bit about the miles universe, or if you already know the basics, cards with point and mile programs can take you far, literally.

Especially if you can take advantage of the right promos and transfer your points at the right time.

And the costs? Watch out for the traps

A good credit card isn’t just about rewards. Some rewards credit cards come with pretty steep annual fees. Sometimes, the value you get in cashback or save with miles doesn’t even cover what you’re paying just to keep the card.

So, always do the math. Check if the annual fee can be waived depending on your monthly spending, or if the bank offers extra perks that justify the cost.

And very important: only use a credit card responsibly. It’s no use earning 2% cashback if you’re paying 12% interest because you couldn’t pay the bill.

Conclusion

At the end of the day, there’s no definitive answer to which is better: cashback or miles. What exists is the right choice for you.

Analyze your habits, see what you value more, immediate returns or future experiences, and, most importantly, make sure the card you choose helps you reach your goals without becoming a financial trap.

Don’t fall for the hype of having the “trendy card” just because it offers airport lounge access and priority check-in. If you don’t travel, those benefits don’t make sense. Likewise, if you prefer saving or investing money, a cashback card can be a simple and effective tool.

Written by

Juliana Raquel