Miles vs. cash back: Which type of reward is right for you?

June 10, 2025|7 min read

If you’re trying to choose between a miles or cash back rewards credit card, it can help to consider your lifestyle and spending habits. Frequent travelers may benefit more from a miles rewards card. Those looking for straightforward rewards might prefer a cash back rewards card.

Learn more about the differences between cash back and miles credit cards.

What you’ll learn:

Cash back rewards cards typically allow cardholders to earn a percentage of their purchase price on every eligible transaction.
Miles rewards cards may let cardholders earn rewards on every purchase and offer elevated rewards on travel-related purchases.
Both miles rewards cards and cash back rewards cards typically offer a variety of options for redeeming rewards.
Capital One offers both miles rewards credit cards and cash back rewards credit cards.

Miles credit cards

Miles rewards credit cards let cardholders earn miles for every dollar they spend. Depending on the card, rewards miles may not equate to actual distance. The value of a mile depends on the card issuer.

Types of miles credit cards

Generally, there are two types of miles rewards cards.

General travel rewards credit cards: General travel rewards cards typically offer flexibility in how you can earn and redeem your miles. With Capital One travel rewards cards, you can earn miles on every purchase. Plus, you earn elevated rewards on bookings made through Capital One Travel. Capital One also gives you the flexibility to use your miles your way.
Co-branded travel rewards credit cards: These cards are associated with specific airlines or hotels. You’ll typically earn the most miles by using the card to make purchases with that airline or hotel and its partners.

General travel rewards cards might offer more flexibility, because they’re not limited to a specific airline or hotel.

Advantages of miles credit cards

Here are some benefits of using a miles rewards credit card:

Elevated rewards: Miles rewards cards may offer elevated rewards for travel-related purchases. With the Capital One Venture card, for example, you’ll earn unlimited 2X miles on every purchase and 5X miles on hotels and rental cars booked through Capital One Travel. With the Capital One Venture X card, you’ll also earn unlimited 2X miles on every purchase. Plus, you’ll earn unlimited 10X miles on hotels and rental cars and 5X miles on flights booked through Capital One Travel.
Special travel benefits: Travel rewards cards may come with extra benefits to enhance your travel experience. For example, Venture and Venture X cardholders can receive up to a $120 credit for Global Entry or TSA PreCheck®.¹ Venture X cardholders can get access to airport lounges worldwide, including Capital One Lounges and participating Priority Pass™ lounges, after enrollment.² Plus, none of Capital One’s U.S.-issued credit cards have foreign transaction fees. View important rates and disclosures.
High-value welcome bonuses: Travel rewards credit cards may offer bonuses to new cardholders. For example, Venture and Venture X offer 75,000 bonus miles when you spend $4,000 within three months of opening an account.³ And Venture X cardholders get 10,000 bonus miles every year, starting on your first anniversary, and a $300 annual credit for bookings through Capital One Travel.

Cash back credit cards

With cash back rewards credit cards, you earn a percentage of your purchase price back in rewards. And you can earn rewards on a variety of qualifying everyday purchases, from gas to groceries.

Types of cash back credit cards

Generally, there are three types of cash back rewards credit cards.

Flat-rate cash back rewards cards: With this type of credit card, you’ll earn the same percentage rate on everything you buy using the card. For example, the Capital One Quicksilver and QuicksilverOne cards let you earn 1.5% cash back on every purchase, every day.
Tiered cash back rewards cards: These credit cards give you different percentages of cash back, depending on the type of purchase. The Capital One Savor card offers unlimited 3% cash back at grocery stores and on dining, entertainment and popular streaming services, plus 1% cash back on all other purchases.^4,5
Rotating cash back rewards cards: Rotating cash back rewards cards typically offer a lower flat rate for most purchases but a higher percentage for categories that rotate throughout the year. In some cases, you can pick the categories. In other cases, the credit card issuer chooses them.

Advantages of cash back credit cards

Here are some benefits of using a cash back rewards card:

Simplicity and convenience: You use your card, and you earn cash back—it’s typically as simple as that. For example, with a Quicksilver card, you’ll earn 1.5% cash back on every purchase.
Bonus cash back in certain spending categories: Some cards, such as Savor, may offer higher rewards in certain categories like groceries and dining. Other cards may offer rotating bonus categories that give you more rewards for making purchases at certain times.

Considerations about cash back credit cards

A cash back rewards card can make it pretty straightforward to earn cash back with flexible redemption options.

But depending on the card, it may be difficult to stay on top of how to earn the most cash back. For example, that could be the case if your card’s rewards categories rotate or the cash back percentage depends on the type of purchase you’re making.

Credit card cash back vs. miles: Which is better?

One isn’t necessarily better than the other. Your lifestyle and spending habits could help you decide what kind of rewards card is right for you. When comparing rewards credit cards, you can look beyond rewards to factors, such as:

Interest rates
Fees, including annual fees
Bonuses
Benefits and perks
Rewards redemption options

Key takeaways: Miles vs. cash back

If you like keeping your options open, you might find a cash back rewards credit card is best for you. If you’re a frequent traveler, a miles rewards card could make more sense.

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

Explore travel rewards cards with unlimited miles you can actually use.
Earn a one-time 75,000-mile bonus and receive an additional 10,000 bonus miles every year, starting on your first anniversary, with the Venture X card.
Earn unlimited 2X miles on every purchase, every day, and earn a one-time 75,000-mile bonus with the Venture card.
Earn unlimited 1.25X miles on every purchase, every day, with no annual fee with the VentureOne card.

Footnotes

Learn more about FDIC insurance coverage.

¹To receive a statement credit up to $120, you must use your Venture or Venture X card to either complete the Global Entry application and pay the current application fee, or complete the TSA PreCheck® application and pay the current application fee. Credit will appear within two billing cycles, and will apply to whichever program is applied for first. One statement credit per account every four years, and your account must be open and in good standing when the credit is applied. Fees charged to a VentureOne card are not eligible. Refer to the Application or Account Terms for additional details.

²Access to lounges includes access to available Priority Pass lounges worldwide through Priority Pass enrollment and Capital One Lounges. Lounge access is not guaranteed and is subject to space availability. Terms apply and are subject to change. Learn more about Capital One Lounges at: https://capitalonetravel.com/lounges/capital-one-lounges.

³Card offers with a cash or miles rewards bonus are available by selecting the offer on this page, and may not be available if you navigate away from or close this page. Existing or previous cardmembers are not eligible for this product if they have received a new cardmember bonus for this product in the past 48 months.

⁴You will earn 3% cash back at grocery stores and on dining, qualified entertainment purchases and popular streaming services, plus 1% cash back on all other purchases. Entertainment purchases made through a third party site or by a vendor that does not categorize themselves under one of the qualifying entertainment merchandise category codes will earn 1% cash back. Grocery purchases made at gas stations, convenience stores, warehouse clubs, discount stores, and super stores (or at grocery stores associated with discount stores or super stores) will earn 1% cash back. Earnings will apply to net purchases (purchases minus any credits or returns) only. Cash advances, balance transfers, and checks used to access your account are not considered purchases and will not earn rewards. Capital One uses merchant category codes to determine if a purchase is within one of the additional cash back categories. This means that sometimes a purchase may not earn additional cash back. For example, some food trucks or food carts may use a “merchandise” code and restaurants in department stores or hotels may use a “merchandise” or “hotel” code instead of a “dining” code. Additionally some amusement parks may code their online tickets as “merchandise” instead of “entertainment.” Capital One is not responsible for merchant category codes used by merchants.

⁵The 3% grocery earn is limited to purchases made at grocery stores, excluding superstores like Walmart® and Target®.

We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional.

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Miles vs. cash back: Which type of reward is right for you?

Earn 75,000 bonus miles