Card with miles or cashback: which option should you choose?

Card with miles or cashback, what would be the best option for you?

Credit cards increasingly come with numerous benefits and advantages for their customers.

However, the most sought after and used benefits on credit cards are perhaps miles and cashback, due to the advantages offered.

For example, currently credit card services or digital accounts already come with cashback or miles in their benefits package.

Therefore, these solutions are no longer a differentiator, but rather a prerequisite.

Therefore, it is worth finding out which company is best for you, which is what we will discuss in this article.

What is Cashback?

The term cashback means money back, this type of service is focused on returning part of the amount you spent on your credit card on future purchases.

In this sense, in addition to being used for virtual purchases, it also includes purchases made in physical stores linked to a program that offers cashback.

In short, cashback emerged in 1998 in the United States of America, at the company Ebates.

Thus, this service came connected to credit cards, but in Brazil it only appeared in 2007, and continues to win over more and more customers and companies.

For example, here's how it works: if an institution sells a product for R$200 and offers 20% cashback for payment made with a specific card.

Naturally, through this type of purchase you will receive R$20 back to spend at card operator partners or in associated stores.

Card with miles or cashback: What are miles?

The Miles system is also an American creation that emerged in 1981 through the company American Airlines.

In this way, the company began offering miles to passengers who traveled a lot, and consequently the miles could be exchanged for airline tickets.

It works like this: an airline offers miles based on the value, distance of the trip or class of the ticket.

In other words, the more expensive, further away, or better the seat, the more miles the person will receive, which will be accumulated and can be exchanged for airline tickets.

Likewise, this system is also offered by credit card institutions that have partnerships with airlines.

Thus, with each purchase made using the card, points will be accumulated and converted into miles, which will be used to purchase or reduce the cost of the ticket.

It is currently possible to exchange miles for other products, services and even sell them and earn extra money.

Advantages of a card with cashback 

To better decide between one card with miles or cashback, see the advantages that a card with cashback offers.

• The person can save money and use the cashback however they want, whether to pay the bill, withdraw, invest or buy more;
• You can enjoy additional benefits, such as discounts at partner stores, access to VIP lounges, travel insurance, among others, depending on the card chosen;
• You don't need to participate in loyalty programs or accumulate points that may expire or have complex rules to exchange for products or services.

Best cashback card options on the market:

1. Inter Gold;
2. Digio Visa Card;
3. Black Sugar Loaf;
4. Vivo Itaú Card;
5. Buscapé Card;
6. ZOOM with cashback;
7. BTG Pactual Advanced Option Card;
8. Bradesco Like;
9. BMG Mastercard card.

Advantages of a card with miles 

Here, it is worth highlighting that there are two types with similar benefits and cards in relation to miles:

1. Airline cards that automatically accumulate miles in airline programs: All Blue, LATAM Pass, Smiles, AAdvantage, Top Miles & Go;
2. And cards that accumulate points exchanged for miles in points programs: Livelo, Sphere, Lupp, Atoms, PDA More.

Advantages:

• Save on travel, being able to travel for free or with significant discounts;
• Have flexibility in redemption, being able to choose between different airlines and destinations;
• Take advantage of promotions and partnerships that accelerate the accumulation of miles;
• Use the card on a daily basis, without needing to make an extra effort to collect miles;
• Access exclusive benefits such as airport lounges, travel insurance and baggage allowance.

Remember to consider the following situations when choosing between a card with miles or cashback:

• The card flag and issuer;
• The card segment and annual fee;

• The rule for accumulating points and converting points to miles;
• Travel benefits such as: access to VIP lounges, insurance and baggage allowance.

Conclusion

Ultimately, the answer to the question of which is better, if the card with miles or cashback, It will depend on the situation the person is in.

Each has its advantages that fit different situations.

If a person travels a lot by plane, the air miles system will be much better and more advantageous for them, for example, and it is even possible to transfer miles.

However, if you travel very little and tend to make a lot of purchases, the cashback system is the best option.

Therefore, you must analyze which of the modalities will benefit your life the most and decide.