Ready to upgrade from a vanilla card that doesn’t offer any rewards to an account that does? Or maybe you have one type of rewards card already and would like to explore what else is out there. Wonderful. You have choices. Some cards offer rewards in the form of points, others miles, and still others in cash. Which rewards program is right for you depends on your lifestyle. Let’s break down how these rewards systems differ.
Credit cards that offer points
Many credit cards offer rewards in the form of points. You might get a large amount of them when you open the card as an introductory (or welcome) bonus. After that, you will earn even more points when you charge with the card on eligible purchases.
Depending on the credit card you get, it may have a fixed-point value, so you get a specific number of points no matter what you purchase. Others will have tiered systems which allow you to earn more points in some categories and less in others.
When you have accumulated enough credit card points, you can redeem them in a variety of ways. Each credit card issuer has its own system, but you can usually trade them in for:
In general, credit card points are valued at 1 cent each, but the value can be lower when redeemed for shopping and higher when you use them for travel. Generally, the best value will be to redeem points towards travel, but you can consider points as flexible currency that you can use for all kinds of things.
Some popular credit cards that offer points include:
Chase Sapphire Preferred® Card
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- Earn 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, up to $50 Annual Chase Travel Hotel Credit, plus more.
- Points are worth more value when you redeem for airfare, hotel stays, card rentals, and cruises through Chase Travel.
- New cardholders can earn signup_reward bonus points after you spend signup_bonus_spend_amount on purchases in the first three months from account opening. Additionally, on an ongoing basis, a $50 hotel credit each year for a stay booked through the Chase Travel.
Bank of America® Premium Rewards® credit card
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- Earn unlimited two points for every dollar spent on travel and dining purchases and unlimited 1.5 points per dollar spent on all other purchases.
- New cardholders can earn 60,000 online bonus points – a $600 value – once spending at least $4,000 on the card in the first 90 days of account opening.
- Additionally, cardholders receive up to $100 in airline incidental credits annually plus TSA PreCheck/Global Entry statement credits of up to $100 every four years.
- Finally, if you’re a Bank of America Preferred Rewards client, you can earn 25-75% more points on every purchase.
American Express® Gold Card
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- Earn 4X points per $1 spent on purchases at restaurants worldwide (on up to $50,000 in purchases per calendar year), then 1X points; 4X points per $1 spent at US supermarkets (on up to $25,000 in purchases per calendar year) then 1X points; 3X points per $1 spent on flights booked directly with airlines or on AmexTravel.com; 2X points per $1 spent on prepaid hotels and other eligible purchases booked on AmexTravel.com; and 1X point per $1 spent on all other eligible purchases.
- New cardholders may be eligible for as high as signup_reward Membership Rewards® Points after you spend signup_bonus_spend_amount in eligible purchases in your first six months of card membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the card, your score may be impacted.
- Additional perks include: $10 total monthly statement credits when you use the card to pay for purchases at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys (enrollment required). This card also comes with up to $120 Uber cash annually; just add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. (when you select an American Express Card for your transaction). Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made at restaurants or U.S. supermarkets. Point caps and terms apply.
- This card has a AnnualFees annual fee.
- American Express is a CardRatings advertiser.
Credit cards that offer miles
Although some credit cards that have a point-based rewards system offer travel perks, cards that are co-branded with an airline, such as American, United, and Southwest, typically express the rewards as miles. There are also a few credit cards not associated with airlines which earn miles, too, such as the Capital One Venture Rewards Credit Card and Discover it® Miles.
You can accumulate miles the same way as you would points – with a possible introductory bonus and when you buy qualified things with the card – but also by traveling. These cards do not have the same super flexible rewards redemption as points, but they can make your travel experience significantly better when you stick with the brands associated with the card. Or with a card like the Venture, you can redeem your miles towards any travel purchase.
Generally, you can redeem the miles you have amassed for airfare on the credit issuer’s travel portal, but can also transfer your miles to that airline’s travel partners or book within your issuer’s travel portal. Depending on the card, you can also spend your miles on such travel related expenses as hotel accommodations.
Although credit cards that offer miles don’t usually have the same flexibility as those that offer points, if you will be traveling a lot with a particular airline or its partners, you can come out ahead with perks.
Mile-earning cards often come with:
As with points, miles are often valued at 1 cent to 1.5 cents each.
Consider miles as currency to offset travel costs.
Some popular credit cards that offer miles include:
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- Enjoy a one-time bonus of signup_reward miles once you spend signup_bonus_spend_amount on purchases within three months from account opening, equal to $750 in travel.
- This card offers 2x miles for every purchase made with the card, plus 5x miles on hotels, vacation rentals, and rental cars booked through Capital One Travel.
- Miles earned can be used to cover any travel purchase, or you can book travel through Capital One’s travel portal, or transfer your miles to eligible travel partners.
- Cardholders can enjoy Global Entry/TSA PreCheck application reimbursement.
Southwest Rapid Rewards® Plus Credit Card
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- Earn signup_reward bonus points after spending signup_bonus_spend_amount on purchases in the first three months from account opening.
- Earn 2 points per $1 spent on Southwest Airlines® purchases; 2 points for every $1 you spend at gas stations and grocery stores on the first $5,000 in combined purchases per anniversary year; and 1 point for every $1 spent on all other purchases.
- Cardmembers and up to 8 additional passengers in the same reservation can check their first bag at no additional cost.
- Additionally, cardholders earn a 3,000 anniversary bonus each year.
Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
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- Earn 2x AAdvantage® bonus miles for every dollar spent at gas stations and restaurants, and on eligible American Airlines purchases; and earn one Loyalty Point for every one eligible AAdvantage® bonus mile earned from purchases.
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- Earn a $125 American Airlines Flight Discount after you spend $20,000 or more in purchases during your card membership year and renew your card.
- Additionally, enjoy preferred boarding on American Airline flights, and your first checked bag for free on domestic American Airline itineraries for you and up to four companions traveling with you on the same reservation.
- Citi is a CardRatings advertiser.
Delta SkyMiles® Gold American Express Card
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- As a limited-time bonus, new cardholders can earn signup_reward bonus miles after you spend signup_bonus_spend_amount in eligible purchases on your new card in your first six months of card membership. Offer Ends 10/29/2025.
- With this card you’ll earn 2x miles on Delta purchases, at restaurants worldwide (plus delivery and takeout in the U.S.) and at U.S. supermarkets; and 1x point on all other eligible purchases.
- Additionally, earn a $200 Delta Flight Credit to use toward future travel after you spend $10,000 in purchases on your card in a calendar year.
- Cardholders also enjoy first checked bag for free on Delta flights.
- This card charges a AnnualFees
Credit cards that offer cash
The other category of rewards cards offers cash back. As with points and miles cards, cash-back cards often come with introductory bonuses where you can qualify for a certain amount of money after meeting a minimum spend.
You can then earn more cash as a percent of each qualified purchase you make. It might be a flat rate where you earn 1.5% on every charge, or a program where you earn higher rewards in certain spending categories. For example, you may earn 3% at supermarkets and 1% on other spending categories. Other cash back cards are customizable, allowing you to select the spending categories that have the highest earning potential.
Depending on the card, you may only earn the highest amount up to a certain figure, such as 5% on dining out up to $50,000 for the year.
There are different ways to claim the cash that you have earned. The most common are:
The money you earn with a cash-back card is straight currency.
Some popular credit cards that offer cash back include:
Chase Freedom Unlimited®
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- Earn a signup_reward bonus after you spend signup_bonus_spend_amount on purchases in your first three months from account opening.
- Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service; and 1.5% on all other purchases.
Citi Double Cash® Card
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- You’ll earn 1% back when you make your purchases and another 1% back when you pay your bill on time (at least the minimum balance due), for a possible total of 2% cash back on all your purchases. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- There’s no traditional bonus offered with this card, but it offers an introductory offer of 18 months of no interest on balance transfers (then RegAPR), which is definitely a valuable bonus if you need some extra time to pay off an existing balance. Citi is a CardRatings advertiser.
Bank of America® Customized Cash Rewards credit card
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- Earn 6% cash back for the first year in the category of your choice: gas and EV charging stations; online shopping, including cable, internet, phone plans and streaming; dining; travel; drug stores and pharmacies; or home improvement and furnishings. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category. Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum. Update your choice category for future purchases once each calendar month using the mobile banking app or online banking, or do nothing and it stays the same.
- As a Bank of America Preferred Rewards client (membership and tiers are based on a three-month average balance across your eligible Bank of America accounts) you can earn 25%-75% more cash back on each purchase depending on your tier.
Which card is best for you?
The rewards card you get should match your lifestyle so it’s important to figure out what you most want out of the account.
Cash-back credit cards are great because you can use the money that you’ve earned for anything. Many do not charge an annual fee, because the issuer is not paying for expensive perks. They are also available for a wide range of credit scores, so you can usually start out with a card that has this type of rewards program. When deciding on the cash-back credit card for you, consider whether or not you want a flat-rate card or one where you will earn more in different categories.
Cards that offer miles are most advantageous if you plan on doing extensive travel with a specific airline. Think carefully about your present as well as your future plans. Does it include flights with that airline or its partners, and if so, do you want all the perks associated with that account? Many have annual fees, though they are typically under a couple of hundred dollars.
Cards that offer points as rewards combine the benefits of cash-back cards and cards that offer miles. You can use those points in many different ways, from statement credits to purchasing flights. Depending on the card, the annual fee can be zero or steep, such as $250 and higher. Those in the latter category can have extraordinary benefits that offset that fee, but you have to be sure that you will really take advantage of them in order to make the fee worth it.
➤ SEE MORE:How to value your credit card rewards
The bottom line on rewards credit cards
As a cardholder, you will come out ahead with the account no matter how the rewards are expressed by keeping your balance to zero. If you maintain a revolving debt, interest will be applied. Those fees will erode or negate the rewards you have worked hard to earn. That said, it’s also important to choose a card that fits your lifestyle to make the most of any rewards earned.
American Express® Gold Card See Rates and Fees; Delta SkyMiles® Gold American Express Card See Rates and Fees
