Miles Vs. Cash Back
Years ago, we had a cash back card and I thought it was the greatest thing ever. Then I started looking into miles programs (delta was the first one I looked into) and I wondered which I should do? Well I did the math, I looked at the year previous and totaled up how much $ we had earned from our cash back card. I then figured out how many miles we could have earned if I had put all that money on a Delta card. I realized that the miles earned would get me a plane ticket to Europe a whole lot faster than saving that money every year on my cash back card would. Here's why........
"typically" miles tickets are cheaper than $ tickets. For example I saw a great sale recently on flights from SLC to Long Beach California for $140, when I looked at the miles price it was only 9k miles (to keep things simple I equate 9k miles to $90, just take 2 zero's off whatever the miles price is and it will give you a good comparison to $). The other reason why I personally like miles instead of dollars back, well I know I will use those miles for a trip whereas the cash back ends up disappearing to who knows where. If you have a great cash back card, and you are able to save that money for trips and you only buy flights when you come across incredible sales, well then stick with what you are doing (but I still recommend temporarily applying for miles cards too to earn a bonus, might as well take advantage of both kinds of cards)! Typically sales on flights happen for Off-season travel dates, I like that miles can still give me a fantastic value even during high season times (this may require booking almost a year in advance, but I am ok with that). For example a trip to Bora Bora in July (high season) is something I never would have spent money on, but with miles that dream became a reality.
The other reason I recommend miles cards over cash back cards, their sign up bonuses are better. Just signing up for the Chase preferred card earned me a free flight to Tahiti (worth over $1000).
One of the downsides to using miles, sometimes airlines only sell a few "award seats" at good prices. So trying to take a large family somewhere on miles can be restrictive if you are wanting to go during High season or to a popular destination. For example, trying to take a large family to Hawaii on miles during Christmas break is a daunting task (but doing that with cash is a daunting task as well, unless you're ok paying an arm and a leg)! It can be done, it just requires planning and flexibility but in the end it'll be worth it because of the savings.
Miles- They generally work best when you give yourself a year in advance to book (especially if it's a popular destination and high season). Some airlines have a set miles price tag on flights, and others (like Delta) change the miles price and they can fluctuate much like $ prices. Watch for sales just as you would if you were paying in cash. If you know you can get a sale ticket from SLC to NYC for around $250, then try to spend around 25k on miles and that's a great deal! If you can get a sale to Europe in the summer for $500, then getting a ticket to Europe for 50K is a great deal. Don't just go online one-day and book a ticket for whatever the price says, watch it and wait for a good deal.
Airline specific miles vs. Chase points Vs. Amex Points
If you earn Delta miles (using a Delta credit card), those only work to book Delta flights. If however you have a "personal" Amex card (like the green, gold, or platinum) or a "personal" chase card (like the (Freedom, Sapphire preferred, or Sapphire Reserve) these earn points that can be transferred to LOTS of different airlines and hotel's so they have a lot more flexibility which is nice.
My recommendation for cash back vs. miles would depend on you. Do you travel, do you want to travel more? Evaluate what you are earning from your credit cards and how you want to use it. Just make sure that whether you are using a cash back card or a miles card, that you are earning the highest rate possible! New credit cards come out all the time, so sticking with a card you have been using for over 8 years may not be the wisest thing.
Here are all my credit card referrals - it's your way of thanking me for putting all this information together for you! :)
"typically" miles tickets are cheaper than $ tickets. For example I saw a great sale recently on flights from SLC to Long Beach California for $140, when I looked at the miles price it was only 9k miles (to keep things simple I equate 9k miles to $90, just take 2 zero's off whatever the miles price is and it will give you a good comparison to $). The other reason why I personally like miles instead of dollars back, well I know I will use those miles for a trip whereas the cash back ends up disappearing to who knows where. If you have a great cash back card, and you are able to save that money for trips and you only buy flights when you come across incredible sales, well then stick with what you are doing (but I still recommend temporarily applying for miles cards too to earn a bonus, might as well take advantage of both kinds of cards)! Typically sales on flights happen for Off-season travel dates, I like that miles can still give me a fantastic value even during high season times (this may require booking almost a year in advance, but I am ok with that). For example a trip to Bora Bora in July (high season) is something I never would have spent money on, but with miles that dream became a reality.
The other reason I recommend miles cards over cash back cards, their sign up bonuses are better. Just signing up for the Chase preferred card earned me a free flight to Tahiti (worth over $1000).
One of the downsides to using miles, sometimes airlines only sell a few "award seats" at good prices. So trying to take a large family somewhere on miles can be restrictive if you are wanting to go during High season or to a popular destination. For example, trying to take a large family to Hawaii on miles during Christmas break is a daunting task (but doing that with cash is a daunting task as well, unless you're ok paying an arm and a leg)! It can be done, it just requires planning and flexibility but in the end it'll be worth it because of the savings.
Miles- They generally work best when you give yourself a year in advance to book (especially if it's a popular destination and high season). Some airlines have a set miles price tag on flights, and others (like Delta) change the miles price and they can fluctuate much like $ prices. Watch for sales just as you would if you were paying in cash. If you know you can get a sale ticket from SLC to NYC for around $250, then try to spend around 25k on miles and that's a great deal! If you can get a sale to Europe in the summer for $500, then getting a ticket to Europe for 50K is a great deal. Don't just go online one-day and book a ticket for whatever the price says, watch it and wait for a good deal.
Airline specific miles vs. Chase points Vs. Amex Points
If you earn Delta miles (using a Delta credit card), those only work to book Delta flights. If however you have a "personal" Amex card (like the green, gold, or platinum) or a "personal" chase card (like the (Freedom, Sapphire preferred, or Sapphire Reserve) these earn points that can be transferred to LOTS of different airlines and hotel's so they have a lot more flexibility which is nice.
My recommendation for cash back vs. miles would depend on you. Do you travel, do you want to travel more? Evaluate what you are earning from your credit cards and how you want to use it. Just make sure that whether you are using a cash back card or a miles card, that you are earning the highest rate possible! New credit cards come out all the time, so sticking with a card you have been using for over 8 years may not be the wisest thing.
Here are all my credit card referrals - it's your way of thanking me for putting all this information together for you! :)
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