In addition to purchasing power and credit-building potential, credit cards also offer a variety of cool perks. The best credit card perks can be separated into three distinct categories – cash back, points, and miles. While all three of these credit card perks are equally attractive, they may not be the best fit for everyone. Each of these perks is tailored to a certain type of user and where they spend their money. If you’re looking for a credit card, it’s important to understand how each of these perks work so you can choose the best credit card perk for you.

Cash Back

Cash back works exactly as it sounds – you get cash back on every eligible purchase you make using your credit card. Redeeming the reward can be as simple as a direct deposit to your bank account. This is a simple and straightforward way to get rewarded for using your credit card.

The cash back is usually calculated as a small percentage of the total purchase amount. The percentage you earn and the type of eligible purchases vary from one card to another. With some cards, you earn the same rate of cash back on all purchases. With other cards, you may earn a higher rate on specific types of purchases and a lower rate on others.


With a points credit card, you earn points instead of dollars for every purchase you make with your card. The points are generally calculated as a fixed amount per dollar spent. The points earned can be redeemed as coupons or vouchers that can be used against purchases from select outlets.

Different credit card issuers have different rewards rates and redemption options. In most cases, you can redeem earned points for things such as gift cards, merchandise or even cash back and travel purchases. Some points cards allow you to redeem points for sporting events or concerts.


Miles credit card also allow you to earn rewards against purchases but these are typically associated with travel-related purchases. You earn points against travel purchases and can redeem them for future travel-related expenses.

With a miles credit card, you earn a fixed number of miles for every dollar you spend. Some cards only let you earn miles on travel-purchases, others let you earn miles on larger variety of categories although the reward rate may be different for each category. You can accumulate your miles and redeem them for flights, seat upgrades, airport lounge access, and other travel expenses. Some points allow you to redeem miles against select partner hotels.

How To Choose The Best Credit Card Perks For You

Getting cash back on every purchase sounds tempting. But so does earning points and miles. The truth is all of these perks are very attractive but they may not necessarily be beneficial for you. The best card for you will depend on your spending habits.

If you use your credit card for all sorts of everyday purchases, you’ll a cash-back credit card may work best for you. On the other hand, a frequent traveler will get the best value from a miles credit card. While the flexible redemption options of a points card are appealing, it’s important to check the options available will be of use to you before choosing this type of card.