Selecting the right credit card for your travel expenses can be daunting, given the plethora of options available in the market. One of the deciding factors is how you wish to earn value-back. Some cards offer reward points that can be redeemed toward free flights or hotel stays while others directly offer air miles in place of reward points. At the same time, there are cards that provide a percentage of the spend as cashback into your statement. Each option has its own set of advantages and caters to different travel preferences.
In order to find the right credit card, it is important to analyze your travel preferences and compare multiple options from different issuers. To do so, you can use platforms like Paisabazaar.com as it allows you to compare multiple travel credit card options with ease. Here are some key factors to consider when choosing between points, miles or cashback for selecting the ideal travel credit card.
Points Vs. Miles Vs. Cashback
While all credit cards have their benefits and drawbacks, here are the different situations under which it would make sense to opt for one of the three types of value-back.
Consider Points for Flexible Travel Redemption
Rewards credit cards stand out as the preferred choice for many individuals because of their flexibility. Such credit cards offer reward points across all your spends, sometimes up to a certain limit. Depending on the card, you can redeem the accumulated reward points through the issuer’s travel portal, transfer them to partner loyalty programs, or purchase products from the rewards catalogue.
If you want flexibility to redeem rewards for various travel expenses like flights, hotels, car rentals and more, a credit card that offers points may be the ideal choice. This flexibility makes points credit cards more beneficial, especially if you are not loyal to a specific airline or hotel chain and if you do not want to limit the redemption to travel category only.
Consider Miles for Airline-specific Benefits
Similar to rewards credit cards, miles credit cards allow you to earn a certain number of air miles on every purchase you make, which can then be used toward earning free flights, upgrades, or free hotel nights. Each card varies as far as redemption choices, but in general, miles cards are aimed at people who want to save on travel expenses.
Some miles cards offer general miles, meaning you can redeem them for multiple airlines or hotel chains, whereas, some miles cards are co-branded, meaning they are connected to a particular airline or hotel’s loyalty program. With such cards, you can earn Miles specific to the brand (e.g., Club Vistara Points, Marriott Bonvoy Points). Some cards also have a list of travel partners with which you may be able to transfer your miles. If you are a frequent flyer loyal to a specific airline or hotel chain, a credit card that earns Miles with that co-branded airline or hotel chain, may be the most rewarding option.
Consider Cashback for Direct Savings
For those who prefer straightforward and immediate savings on their travel expenses, a cashback credit card is the right choice. Cashback credit cards provide a direct value back on your spends. The cashback is offered directly into the credit card statement, enabling immediate savings and reducing the overall cost of your travel purchases. This simplicity makes cashback credit cards an excellent option for individuals who want to earn direct value back on their travel bookings.
Choosing the right cashback card depends on your travel preferences. Some cashback cards have a flat rate, such as 1.5% back, which means you will earn that same percentage back on all purchases. Other cashback cards offer bonus categories. If you are looking to save specifically on travel, you should consider a card that offers higher cashback on travel-related spends.
Points Vs. Miles Vs. Cashback: Which one should you choose for travel?
Ultimately, deciding between a cashback, miles, or points credit card depends on your preferences and travel habits:
- For frequent travellers who are loyal to a particular airline or hotel chain, a co-branded miles card will be the most beneficial option
- For regular travellers who want to earn miles but don’t want to be restricted to a specific brand, a general travel rewards card can be a great choice
- If you’re not a frequent traveller but still want to earn immediate value back on your spends, a cashback credit card can be a perfect fit for your needs
Overall, points and miles credit cards allow you to avail free flights and hotel stays, but their value varies from one card to another. On the other hand, cashback credit cards are simpler as you are rewarded with direct value back for your expenses. Choosing between these cards totally depends on your spending behaviour and travel preferences.
