Times have been tough financially for many, with the average American living paycheck to paycheck for much of the past few years. It’s safe to say, if there’s any way to get some extra money in one’s pocket, it should be an opportunity that is taken advantage of.

A rewards credit card is one such instance. However, when starting a new credit card, one will have to decide between cash back vs miles. Both have their benefits, but it can be difficult to choose which one will really offer the most opportunity to you.

Should you look into credit cards with miles or with cash back? Read on and we’ll walk you through what you need to know.

Pros and Cons of Cash Back Credit Cards

Cash back reward cards are among the most popular credit cards out there. When you obtain one of these cards, a small portion of your purchases comes back to you in the form of free money.

This money can be given to you in the form of a gift card, or can even be made in a direct deposit to your bank account. You can also use it to deduct from the overall total that you owe the credit card company.

There are many benefits to having this type of credit card. The most obvious is that it can help to increase your bank balance. Many rewards credit cards offer deals for one’s first year, meaning you could get a higher percentage of your money back during the initial period.

In addition to the money, many cash back cards don’t charge any kind of annual fee. You don’t have to worry about paying the credit card company this charge when the year comes to an end.

Getting your rewards can be simple, and the best credit cards even offer additional opportunities for more rewards during the calendar year.

The only downside? Sign-up bonuses are slim on these cards, and the final value of what you earn may be less than what you’d get on a travel card.

Pros and Cons of Miles Credit Cards

What about going with a credit card that gets you miles instead? If you’re someone that likes to travel often, these cards can help you work easily towards your next vacation.

The more you spend, the more credit you earn towards flights, hotels, and other such travel needs. Some cards are co-branded with specific airlines or hotel lines, whereas others will give you cash you can use towards whichever companies you like.

The downside? The value of miles might vary from airline to airline, making it difficult to know exactly how much you’re saving per purchase. These travel cards often come with annual fees you’ll need to pay as well.

Choosing Cash Back vs Miles Credit Cards

If you’re confused about how to choose a credit card, the above information can be hugely helpful. Choosing between cash back vs miles credit cards can be tricky, but understanding the pros and cons can help you land on what will be best for you.

Have more questions about your personal finances? Keep scrolling our blog for more.