Credit Cards: Cash back vs. miles?
Cash-back credit cards aren’t the only popular way to get rewards from charging it — airlines also offer affinity cards that let users rack up frequent-flier miles with every purchase, too.
But a general rule of thumb, says Curtis Arnold of Cardratings.com, is that a cash-back card “makes more sense for most consumers.” Unlike many frequent-flier affinity cards that carry hefty annual fees and place restrictions on the use of frequent-flier miles, most cash-back cards have no annual fee and no limits on how and when the money is spent. “You don’t have to jump through hoops when it comes to redeeming rewards.”
Moreover, the cash-back option lets consumers shop around for the best deal instead of being stuck with whatever a single airline offers. “When you consider all the discount carriers out there, usually when you do the math, you come out ahead with the cash back” because you spend the money on the best and cheapest flight. “You definitely have more options.”
- Source: Pittsburgh Post-Gazette, June 25, 2006
