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

December 11, 2025|6 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. If you’re a frequent traveler, you may benefit more from a miles rewards card. If you don’t travel often and want to earn rewards on everyday purchases, you might prefer a cash back rewards card.

What you’ll learn:

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

Miles credit cards

Miles rewards credit cards let you earn miles for every dollar you 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

Typically, there are two types of miles rewards cards: general travel rewards and co-branded travel rewards cards. Here’s how they work:

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.

How to redeem miles

Depending on the issuer, you may have several options for redeeming credit card miles. For example, you may be able to use miles to cover a recent purchase, get a statement credit or book travel.

One option that may be different from a cash back card is the ability to transfer miles. For example, Capital One cardholders can transfer their rewards miles to the loyalty programs of Capital One travel partners. This gives cardholders even more versatility in how they redeem their rewards.

Advantages of miles credit cards

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

Elevated rewards: Travel 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, vacation rentals, rental cars and activities booked through Capital One Travel. With the Capital One Venture X card, you’ll earn unlimited 2X miles on every purchase. Plus, you’ll earn unlimited 10X miles on hotels and rental cars and 5X miles on flights, vacation rentals and activities booked through Capital One Travel.
Travel benefits: Travel rewards cards may come with extra benefits to enhance your travel experience. For example, Venture and Venture X cardholders have access to Lifestyle Collection stays through Capital One Travel and can receive up to a $120 credit for Global Entry or TSA PreCheck®. Venture X cardholders get additional access to Premier Collection stays and can get access to airport lounges worldwide, including Capital One Lounges and participating Priority Pass™ lounges, after enrollment.
Bonuses and credits: Travel rewards credit cards may offer bonuses to new cardholders. For example, Venture cardholders can earn 75,000 bonus miles when they spend $4,000 within three months of opening an account. Venture X cardholders can earn a new cardholder bonus and get 10,000 bonus miles every year, starting on their first anniversary. Plus, Venture X cardholders receive a $300 annual credit for Capital One Travel bookings.

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, tiered and rotating. Here’s how they compare:

Flat-rate cash back rewards cards: With this type of credit card, you’ll earn the same percentage rate on most 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.
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.

How to redeem cash back

You may be able to redeem cash back in a variety of ways. But redemption options vary by issuer. You may be able to use cash back rewards to:

Get a statement credit or check.
Cover a recent purchase.
Get a gift card.
Buy tickets to events.

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. There are even cash back cards specifically designed for college students, like the Capital One Quicksilver Rewards for Students card. By using their card responsibly, students have a chance to build credit and earn rewards.
Elevated rewards: Some cards offer higher rewards in certain categories. For example, the 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. Savor cardholders can also earn 5% cash back on hotels, vacation rentals, rental cars and activities booked through Capital One Travel—and 8% cash back on purchases on Capital One Entertainment.
Bonuses: Like miles cards, some cash back rewards cards offer bonuses to new cardholders.

Cash back vs. miles: Which is better?

One type of rewards card 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 may want to look beyond rewards and consider factors such as:

Interest rates
Fees, including annual fees
Bonuses
Benefits and perks

Key takeaways: Miles vs. cash back

If you like keeping your options open, you might find that a cash back rewards credit card is the best option. If you’re a frequent traveler, a travel rewards card could make more sense. You can compare Capital One cards to see if one is right for you and check for pre-approval offers without harming your credit scores.

Footnotes

Learn more about FDIC insurance coverage.

Participating miles transfer partners and loyalty programs are subject to change. Once you have transferred Capital One miles, they become subject to the receiving loyalty program and cannot be transferred back to your Capital One rewards account. All redemptions are final. Terms and conditions for the receiving loyalty program and Capital One Rewards program apply.

Capital One Travel bookings include services such as cancel your flight for any reason, price prediction, price watch, price drop protection, and price match guarantee. Additional fees may apply. The availability of these services varies by account, and they may not be available on all bookings. Terms apply. See travel.capitalone.com/terms-of-service/ for details.

15% savings represents the average savings based on price prediction and booking recommendation for flights. Savings may vary. Terms apply.

Premier Collection
Hotels: Premier Collection hotel experience credit will be applied at checkout by hotel to qualifying charges up to $100 USD or the local currency equivalent. Qualifying charges vary by location, are subject to availability, and must be charged to your room during your eligible stay. Contact hotel directly to confirm qualifying experiences - advance reservations recommended for certain experiences.

In addition to the $100 experience credit, other benefits available to eligible cardholders for Premier Collection hotel bookings include: daily breakfast for two, complimentary Wi-Fi, and (when available) room upgrades, early check-in and late checkout. Benefits applied per room, per stay. Hotel terms and conditions apply; a minimum number of nights may be required by the hotel for booking.

Vacation rentals: Premier Collection vacation rental experience credit will be applied at time of booking the experience by the host provider to qualifying experience charges up to $100 USD or the local currency equivalent. Experiences must be booked with a Capital One credit card. Qualifying experience credit options vary by location and are subject to availability. Contact the host provider directly to confirm qualifying experiences - advance reservations recommended for certain experiences. For certain properties, the experience credit will be provided in the form of a gift card.

In addition to the $100 experience credit, other benefits available to eligible cardholders for Premier Collection vacation rental bookings include: complimentary Wi-Fi, and (when available) early check-in and late checkout. Benefits applied per stay. Back-to-back bookings of the same property within a 24-hour period will be considered one reservation and are not eligible for double benefits. Host provider terms and conditions apply; a minimum number of nights may be required by the host for booking.

Both Hotels and vacation rentals: Premier Collection booking must be made through Capital One Travel in the eligible cardholder’s name, with the cardholder as a member of party traveling, to qualify for benefits. Benefits cannot be redeemed for cash or combined with other offers unless specified. Participating properties and benefits are subject to change. Offer not intended for commercial use unless otherwise permitted. We may disqualify any cardholder from participation and benefits at our sole discretion. Additional terms apply; see travel.capitalone.com/terms-of-service for details.

Lifestyle Collection
Hotels: Lifestyle Collection hotel experience credit will be applied at checkout by hotel to qualifying charges up to $50 USD or the local currency equivalent. Qualifying charges vary by location, are subject to availability, and must be charged to your room during your eligible stay. Contact the hotel directly to confirm qualifying experiences - Advance reservations recommended for certain experiences.

In addition to the $50 experience credit, other benefits available to eligible cardholders for Lifestyle Collection hotel bookings include complimentary Wi-Fi, and (when available) room upgrades, early check-in and late checkout. Benefits applied per room, per stay. Hotel terms and conditions apply; a minimum number of nights may be required by the hotel for booking.

Vacation rentals: Lifestyle Collection vacation rental experience credit will be applied at time of booking the experience by the host provider to qualifying experience charges up to $50 USD or the local currency equivalent. Experiences must be booked with a Capital One credit card. Qualifying experience credit options vary by location and are subject to availability. Contact the host provider directly to confirm qualifying experiences - advance reservations recommended for certain experiences. For certain properties, the experience credit will be provided in the form of a gift card.

In addition to the $50 experience credit, other benefits available to eligible cardholders for Lifestyle Collection vacation rental bookings include: complimentary Wi-Fi, and (when available) early check-in and late checkout. Benefits applied per stay. Back-to-back bookings of the same property within a 24-hour period will be considered one reservation and are not eligible for double benefits. Host provider terms and conditions apply; a minimum number of nights may be required by the host for booking.

Both hotels and vacation rentals: Lifestyle Collection booking must be made through Capital One Travel in the eligible cardholder’s name, with the cardholder as a member of party traveling, to qualify for benefits. Benefits cannot be redeemed for cash or combined with other offers unless specified. Participating properties and benefits are subject to change. Offer not intended for commercial use unless otherwise permitted. We may disqualify any cardholder from participation and benefits at our sole discretion. Additional terms apply; see travel.capitalone.com/terms-of-service for details.

To receive a statement credit up to $120, you must use your Venture, Venture X, Venture X Business or Spark Miles card to either complete the Global Entry application and pay the application fee, or complete the TSA PreCheck® application and pay the application fee. Credit will appear within 1-2 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. Refer to the Application or Account Terms for additional details.

Access 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.

Card offers with a cash or miles rewards bonus are available by clicking the Learn more button below the card you are interested in, and may not be available if you navigate away from or close this page. Venture X cardholders: You are not eligible for this product if you have received a new cardmember bonus for the Venture X card in the past 48 months.

Venture cardholders: You are not eligible for this product if you have received a new cardmember bonus for the Venture card or the Capital One Venture X card in the past 48 months.

VentureOne cardholders: You are not eligible for this product if you have received a new cardmember bonus for the VentureOne card, the Capital One Venture card, or the Capital One Venture X card in the past 48 months.

You 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.

Capital One Entertainment ticketing platform: To use the Capital One Entertainment ticketing platform experience, you must be a Capital One cardholder with an eligible rewards-earning credit card, in good standing; at least 18 years old; and either a primary account holder or an account manager for an eligible consumer credit card, or a primary account holder for an eligible small business credit card. Eligible cards include US-issued, Capital One branded rewards-earning consumer and small business credit cards. Capital One debit cards, private label retail credit cards, and co-brand partner cards are not eligible for the Capital One Entertainment ticketing platform. Capital One online account required; additional terms apply. Please see the Capital One Entertainment ticketing platform’s Terms of Use for more information about ticketing policies and terms and conditions.

Capital One Cardholder Pre-sales: Capital One cardholder ticket and event offers are open to Capital One cardholders with an eligible Visa or Mastercard credit card, as well as eligible Capital One debit cards and co-brand partner cards. Capital One private label retail credit cards are not eligible.

The number of tickets you may purchase for an event may be limited. Some events may have age restrictions and some offerings may have an additional cost or be available on a first-come, first-served basis while supplies last. By clicking on the links above, you may be taken to a site maintained by a third-party.

Eligible Quicksilver, QuicksilverOne, Quicksilver Secured, Quicksilver Student, Journey, Capital One Cash, Spark Cash Select, Spark Classic, Spark Cash, Spark Pro, Spark Cash Plus and Spark Business cardholders will earn 5% cash back on Capital One Entertainment purchases. Eligible Venture X, Venture, VentureOne, Capital One Miles, Venture X Business, Spark Miles, Spark Miles Select and Spark Classic Miles cardholders will earn 5 miles per dollar spent on Capital One Entertainment purchases.

The 8% cash back on Capital One Entertainment purchases includes tickets purchased directly through the Capital One Entertainment ticketing platform only, paid for with an eligible Capital One Savor card. The 8% excludes: (i) tickets purchased through Capital One cardholder exclusive pre-sales; (ii) tickets purchased directly through the Capital One Hall or Capital One Arena ticketing services; and (iii) dining reservations or purchases through Capital One Dining. Your account must be open and in good standing to earn cash back and cash back earned will post to your account within 1-2 billing cycles. Cash back earned will be reclaimed if you cancel or return an eligible purchase, and the offer is valid for consumer, non-commercial use only. Cash back rewards are subject to the terms and conditions disclosed when you opened your account and any subsequent amendments. Online account required.

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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