Your credit card strategy should depend on your goals.
If you’re dreaming of exploring the world—jet-setting to exotic destinations, flying in business class, or staying in luxury hotels—then travel rewards cards that earn transferable miles and points are likely your best bet. But if your priority is stretching your dollars, simplifying your finances, or building savings, then a solid cash back credit card strategy may serve you better.
Related: Credit card travel reward programs (briefly) reviewed
“Travel Points” vs. Transferable Travel Points.
Not all “travel” points are created equal. The key difference lies in whether your credit card points are transferable to airline and hotel partners.
Transferable travel points can be moved to loyalty programs like Delta SkyMiles, United MileagePlus, Marriott Bonvoy, and more. Programs that offer transferable points include American Express Membership Rewards, Chase Ultimate Rewards, Citi ThankYou Points, Capital One Miles, Wells Fargo Rewards, and Bilt Rewards. These points often unlock premium travel experiences and higher redemption value, especially for international flights and luxury hotels.
Example: Chase Ultimate Rewards points are only transferable if you hold a Sapphire Preferred or Reserve card—not just a Freedom Flex.
Non-transferable travel points are limited to fixed-value redemptions through the card issuer’s travel portal or as statement credits, typically worth only 0.6 to 1.0 cents per point (cpp) against travel purchases you’ve already made. These are pitched as having “no blackout dates” or “no restrictions,” but you lose flexibility and upside.
Example: Bank of America’s Travel Rewards card earns 1.5 points per dollar, but they can only be redeemed for a flat 1 cent per point as a travel credit—not transferred.
Flat rate vs. Category bonus cards
Another factor to consider: does your spending fall into high-earning categories like gas, groceries, or dining?
A flat 2% cash back card is great for simplicity, but if you’re an optimizer by nature (you know who you are), category bonuses can add up fast.
The average American household spends over $70,000 per year. While much of that spend can’t be paid for with a credit card (mortgage & rent, car loans, student loan payments), a huge chunk of the average U.S. household budget goes into gas, groceries, and dining—categories many cards target with elevated rewards.
Best Credit Cards for Gas, Groceries, and Dining
| Card | Category | Reward |
| Amex Blue Cash Preferred | Groceries | 6% cash back (up to $6K/year) |
| Amex Gold | Groceries & Dining | 4x Membership Rewards |
| Citi Strata Premier | Groceries & Dining | 3x Thank You Points |
| Capital One Savor | Groceries & Dining | 3% cash back |
| Chase Sapphire Preferred | Dining & “Online Groceries” | 3x Ultimate Rewards (Instacart, Amazon Fresh) |
| Citi Custom Cash | Top Spend Category | 5% (on up to $500/month) |
| Sam’s Club Mastercard | Gas | 5% (up to $6K/year) |
| Costco Anywhere Visa | Gas at Costco | 4% (up to $7K/year) |
| PNC Cash Rewards | Gas | 4% (up to $8K/year) |
| U.S. Bank Altitude Connect | Gas & EV Charging | 4x points (non-transferable) |
Honorable mention: Citi Shop Your Way Mastercard. Others have done a far better job making the case for this card than I could, but comments elsewhere from cardholders indicate Citi has sent out many offers this year worth 10% in statement credits on gas, grocery AND dining purchases for all of 2025.
Credit Card Rewards Comparison: Travel vs. Cashback by Household
Let’s examine three typical U.S. households and compare outcomes based on their annual credit card spending.
1. Single Professional in a Major City
Annual Card Spend: ~$35,000
Cashback (2%): ~$700
Travel Rewards: ~$900–$1,200 value
Best Fit: Travel rewards
With flexible time and fewer commitments, a single professional can capitalize on off-peak travel and award redemptions. Get off the internet and go get your passport stamped while you can!
2. Dual-Income, No-Kids Couple (DINKs)
Annual Card Spend: ~$70,000
Cashback (2%): ~$1,400
Travel Rewards: ~$2,000–$3,000+ value
Best Fit: Travel rewards
With strong earnings and flexibility, DINKs can maximize value from transferable points—think business class flights, luxury hotels, and strategic partner redemptions.
3. Family of Four with Two Working Parents
Annual Card Spend: ~$90,000
Cashback (mixed strategy): $1,500–$2,000
Travel Rewards: $2,500–$4,000+
Best Fit: Depends on priorities
While travel points offer more value, family schedules are less flexible, and peak season redemptions can be pricey. One way to look at it is to notice that a $4000 worth of travel points redemptions now carry an opportunity cost of $2,000 toward the 529 plan/travel hockey fees/Lisa’s braces.
There’s no right answer for every family. A 75% cashback / 25% travel rewards split may be a reasonable compromise—earn cashback year-round and use points for big family vacations every few years.
So, Is It Better to Get Cash Back or Miles?
It depends on how you spend and what you value. Generally, the younger and less tied-down you are, the more you have to gain – financially, personally – from embracing travel rewards. Once you’re older and have responsibilities, you might find that the practicality of cold, hard cash rewards is the more compelling option.
Final Thought
If you want simple, cashback cards win.
If you want value and adventure, transferable miles are the way to go.
Can’t decide? Mix and match. Use cashback cards for everyday purchases and bills, and reserve your travel rewards cards for high-bonus categories and big redemptions. That way, you’re never leaving money—or miles—on the table.