How do credit card miles work?

Credit card miles are a type of rewards currency you can earn by making purchases with a travel rewards credit card. How you redeem those miles depends on the card type and the issuer.

What you’ll learn:

• A travel rewards cardholder typically earns miles by making purchases with their card. 

• Credit cards that offer miles as rewards include general travel rewards cards and cards offered in partnership with businesses like airlines and hotels.

• Rewards redemption options vary by card. But they can include things like covering travel-related purchases or redeeming rewards for a check, statement credit or gift card. 

• Some card issuers offer bonuses for opening a travel card and spending a set amount on the card within a specific period of time.

Credit card miles are a form of rewards currency earned by making purchases with travel rewards cards. Miles can often be redeemed for travel expenses like flights, hotels and car rentals. But specific ways to earn and redeem miles depend on the particular credit card and the credit card issuer.

Travel credit cards typically fall into two categories: co-branded travel credit cards and general travel rewards credit cards.

Co-branded travel credit cards are partnerships between a credit card issuer and an airline or hotel. The airline miles you earn with a co-branded airline credit card could be transferred to the frequent-flyer account of that particular airline or group of airlines. They can generally be redeemed for airfare or other perks.

General travel rewards credit cards often let cardholders earn points or miles on everyday purchases. The miles you earn from purchases with these cards can generally be used more flexibly. For example, you can use Capital One miles to help cover things like flights and other travel expenses. And if you aren’t planning a trip, you have lots of other options to redeem your miles.

Miles and points are different currencies of credit card rewards programs. 

• Miles: You might earn miles with co-branded airline credit cards or general travel rewards cards. For example, Capital One travel rewards come in the form of miles. 

• Points: You may earn points with co-branded hotel credit cards or general travel rewards cards.

Here are two common ways to earn credit card miles with a Capital One travel rewards credit card.

• New cardholder bonuses: You might hear them called sign-up bonuses, welcome bonuses or early-spend bonuses. But the general idea is the same: They’re bonus offers to new cardholders. Sometimes they require cardholders to spend a certain amount within a set time frame. With the Capital One Venture card, for example, you can earn 75,000 bonus miles if you spend $4,000 within three months of opening an account.

• Purchases: With Capital One, you earn miles by using a travel rewards card. Depending on the card, different types of purchases may have different rewards earn rates. For example, the Venture card offers unlimited 2X miles per dollar on every purchase and 5X miles on hotels, vacation rentals, rental cars and activities booked through Capital One Travel.

The first step to redeeming credit card miles is typically to sign in to your account on the issuer’s website or mobile app. Then you can view your miles and choose how to use them. 

Keep in mind that redemption options vary by issuer. Co-branded airline credit card miles might be redeemed through the specific airline’s frequent flyer program. General travel credit cards, like those offered by Capital One, may offer more flexible redemption options.

If you’re a Capital One rewards cardholder, you can sign in to your account to check your rewards balance. Then you can choose the redemption option that best suits your needs.

Here are some ways Capital One cardholders can redeem travel credit card miles. 

• Travel purchases: Use miles to cover all or part of a travel-related purchase. That generally includes purchases from airlines, hotels, rail lines, car rental agencies, limousine services, bus lines, cruise lines, taxis, travel agents and timeshares.

• Cardholder exclusives: Use your miles, your card or a combination of the two to book flights, hotels, vacation rentals, rental cars and activities through Capital One Travel. Or buy tickets for concerts and other unforgettable experiences on Capital One Entertainment.

• Miles transfers: You can transfer your rewards miles to Capital One transfer partners. You need to have an account with the program before you’re able to move your rewards. 

• Cash back: Turn your miles into cash in the form of a check or statement credit.

• Gift cards: Redeem miles for gift cards from retail stores, restaurants and much more. 

• Online: With an eligible Capital One or Discover® credit card, you can use miles to pay for your purchases at Amazon.com through Shop with Points. Or link your eligible card to your PayPal® account. You can use your miles for purchases anywhere that accepts PayPal, including sites like Target®, Apple® and the Home Depot®.

Here are some commonly asked questions about how credit card miles work.

You can earn credit card miles with airline credit cards or general travel credit cards. The number of miles you earn per purchase and how you’re able to redeem them vary by credit card and issuer. 

Capital One offers travel rewards credit cards with exclusive benefits and elevated rewards that can help make your travel experience more enjoyable.