When shopping for a new credit card or signing up for a loyalty program, you’ll quickly notice two popular types of rewards: points and miles. Both can help you save money and unlock amazing travel experiences, but they work a bit differently. Understanding how each system operates will help you decide which is better for your lifestyle and goals.
Here’s a clear guide to how points and miles compare, and how to choose the right rewards strategy.
What Are Points?
Points are flexible rewards units offered by banks, credit card issuers, or loyalty programs. They are usually earned by spending money on a credit card or through purchases with partner retailers.
Examples include:
- Chase Ultimate Rewards
- American Express Membership Rewards
- Citi ThankYou Points
These points are typically redeemed for a variety of options, such as:
- Travel bookings (flights, hotels, rental cars)
- Gift cards
- Shopping with partner merchants
- Statement credits or cash back
Because of this flexibility, points are often favored by people who want more than just travel benefits.
What Are Miles?
Miles are generally tied to airline frequent flyer programs, though sometimes they’re also awarded by travel-focused credit cards. Unlike generic points, miles are usually intended specifically for flights and travel-related perks.
Examples include:
- Delta SkyMiles
- United MileagePlus Miles
- American Airlines AAdvantage Miles
Miles are best used for booking flights, upgrading seats, or accessing partner airline redemptions. They often provide the best value when redeemed for long-haul or premium cabin tickets.
Key Differences Between Points and Miles
Redemption Options
- Points: More versatile. They can be used for travel, merchandise, gift cards, or even paying your bill.
- Miles: Mostly focused on air travel and upgrades, sometimes limited to a single airline and its partners.
Value Per Unit
- Points: Often fixed value, like 1 point = 1 cent if redeemed through the issuer’s travel portal.
- Miles: Value can vary widely. A mile could be worth less than 1 cent or more than 3 cents, depending on how you redeem.
For example, using 50,000 miles for a $500 domestic flight gives you 1 cent per mile. But using 50,000 miles for a $1,200 international business class ticket gets you 2.4 cents per mile — a much better value.
Expiration Rules
- Points: Many bank credit card points never expire as long as your account is open.
- Miles: Airline miles often expire if there’s no account activity for 12-36 months, depending on the program.
Transferability
Some points systems allow you to transfer your points to airline or hotel partners. For instance:
- Chase Ultimate Rewards can be moved to United, Southwest, or Hyatt.
- Amex Membership Rewards can go to Delta, British Airways, and more.
This means your “points” can effectively become “miles” if you choose to transfer them for higher-value redemptions.
When Points Might Be Better for You
- You want simple, flexible rewards that can be used for travel, cash back, or shopping.
- You prefer not to be tied to a single airline or loyalty program.
- You value the ability to book travel through a card’s portal without worrying about blackout dates or award availability.
When Miles Might Be Better for You
- You frequently fly with a specific airline or alliance.
- You’re saving up for long-haul international flights or first-class tickets, where miles can give huge value.
- You don’t mind learning the tricks to squeeze the most out of award charts and partner bookings.
Should You Use Both?
Many smart travelers do. They:
- Use a flexible points card for everyday spending, building up a stash of transferable points.
- Also carry an airline card to get perks like free checked bags, priority boarding, or elite status boosts.
This strategy allows them to have flexibility (points) plus direct airline benefits (miles).
Tips to Maximize Either System
- Always pay your balance in full to avoid interest, which erases the value of any rewards.
- Watch for special promotions where transferring points gives you bonus miles (like 25% more miles when transferring Amex to British Airways).
- Keep an eye on expiration policies and make small transactions to keep accounts active.
Bottom Line: Which Is Better?
There’s no one-size-fits-all answer. If you want straightforward rewards that can be turned into cash or used for any travel with no blackout dates, points are your best friend. If you’re a travel enthusiast looking to unlock luxury flights for a fraction of the price, miles are hard to beat.
Often, the best choice is to use a combination. That way, you can enjoy the everyday flexibility of points while saving miles for aspirational trips. By understanding how both systems work, you’ll make smarter decisions — and enjoy more value from every swipe of your card.