Which Credit Card Do You Prefer, Cash Back or Airline Credit Card?

Which credit card do you prefer, cash back or airline credit card? Perhaps your answer would depend on your lifestyle and spending. Some people may think that a credit card with Frequent Flyer Miles Rewards will give them a bigger reward value but before you go and rush into signing up for a travel reward card, don’t forget to consider it matches your lifestyle.

For instance, to qualify for one free travel ticket, how many points do you need to collect? Usually, a travel reward card gives 1 mile or 1 point for every 1 dollar purchase. The question is, how many miles or points do you need to collect to earn your free airline ticket?

Add to this, earning points may only be limited to airline, hotels, car rentals and other travel related purchases. If you’re not a frequent traveler, it may take a really long time before you can earn your free travel. Therefore, travel rewards are only recommended for people who frequently travel and use credit cards on their trips.

Clearly, if you’re not a frequent traveler and you don’t really use your credit card as much, getting a cash back credit card would be a more practical choice. Why? Credit cards with cash back rewards have more flexible terms and conditions on collecting and redeeming rewards. Generally, you earn 1% cash back per dollar charged to your account. This means, each time you use your cash back credit card- regardless of the type of your purchase- you instantly earn points in your account.

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