Key takeaways. Cash back credit cards are generally the better choice if you want to earn simple rewards on your regular purchases. A points or miles card may be a better option if you travel often or want to start earning travel rewards on your purchases.

Whether AIR MILES are "better" than cashback depends entirely on your travel habits and willingness to "play the game." Cashback is the ultimate in simplicity and flexibility; a 2% cashback card provides a guaranteed, fixed return that can be used for anything from groceries to rent. AIR MILES, however, offer a much higher "ceiling" for value. While cashback is capped at its face value (1 cent = 1 cent), miles can be worth 2 to 4 cents each when redeemed for business or first-class international flights. In 2026, if you are a frequent flyer who enjoys luxury travel, miles will almost always outperform cashback. But if you only travel once a year and find award charts confusing, the predictability of cashback is superior. Most financial experts recommend a "hybrid" approach: use a cashback card for daily boring expenses and a travel card for specific categories (like dining or flights) to maximize both.