When it comes to credit cards, there are so many to choose from that it can be difficult to know which one is right for you. Are you good with numbers and have a fair amount of credit available? Do you tend to spend more than you have on occasion and require a card that helps keep tabs on your spending? Whatever your needs, there’s likely a credit card out there for you. One thing most people can agree on, however, is the fact that in order to get the most value out of your card and maximize your rewards potential, it’s essential to use an alternate credit card when using your main card. In this article, we will outline some of the key differences between a Miles Card Versus Rewards Credit Cards: Which One Is Best For You?
What is a Miles Card?
A miles card is a credit card that rewards cardholders with miles whenever they use the card to buy goods or services. These miles may be redeemed for gifts, travel, or even merchandise. A miles card is one of the more unusual types of credit card, as it is typically only reserved for those with extensive travel history, like frequent business travelers. While many banks offer miles cards, like the one offered by NBK with the one million miles offer, in an effort to encourage more cardholders to get outside of their comfort zone and branch out from traditional purchases, there are a few important things to keep in mind before diving into this space. – First, most miles credit cards come with a variety of restrictions. Some cards may restrict the amount of money you can spend each month to avoid abuse, while others might restrict where you can use the card. A travel miles card might not allow you to use them on groceries or gas. Before signing up for a miles card, make sure you understand the fine print, so you don’t wind up in a sticky situation. – Next, you may be better served with an airline mile card rather than a credit card that offers miles for all purchases. Airlines often run promotions where they offer big bonuses for collecting a lot of miles in a short period of time, making it beneficial to opt for a card that offers airline miles over a card that gives you miles in exchange for paying your bills. – Last, miles cards are primarily designed for frequent travelers, so if this isn’t you, you may want to look elsewhere. However, if you’re someone who travels a lot and uses your card often, a miles card could be the perfect fit for you.
What is a Rewards Card?
A rewards card is a type of card that offers a set number of points in exchange for using the card. These points can be redeemed for things like gift cards, travel tickets, gas, or even merchandise. As the name suggests, rewards cards typically award you points in return for using your card regularly. They are often categorized as cash-back cards, as they generally charge a percentage of the purchase price as a fee. However, there are also travel rewards cards, hotel points cards, and even car rental points cards that offer other types of rewards. Generally, the most common reward scheme is travel points, where you can redeem your points for tickets, hotels, or cruises. Other cards may offer a points system that is more general, such as Amazon points, where you can redeem your points for just about anything on the site.
Which Is Best For You?
Choosing between miles credit cards and rewards cards comes down to a few factors, like how often you travel, how much of a risk-taker you are, and which type of card has the best return on investment for you. If you travel often and want to earn miles to use toward flights or hotels, a miles card might be right for you. If you are looking for a card that rewards you for just about any purchase, a rewards card may be the way to go. In order to get the most value out of your card, it’s essential to use an alternate credit card when using your main card. By using an alternate card, you will be able to take advantage of the rewards offered on that card and potentially earn more points.
Things to consider when choosing which type of card you want
– If you travel often, you may be better off with a miles card than a rewards card. Airlines often run promotions where you can earn a lot of miles, like double miles on flights, by signing up for a new card and meeting a certain spending requirement within a certain period of time. – If you have a high-risk tolerance, you may be better off with a rewards card than a miles card. Many rewards cards will offer lower interest rates and other perks like no interest if you pay off your balance every month.
Summary
The decision between a miles credit card and a rewards card comes down to several factors, like how often you travel, how much of a risk-taker you are, and which type of card has the best return on investment for you.
