Points and miles are loyalty program reward currencies. They both have similarities and differences when it comes to earning, redeeming, and transferring. But these two terms aren’t always as cut and dry as they may initially seem.
In many cases, transferable reward currencies you can earn with flexible credit cards are called points, such as Chase Ultimate Rewards points, Amex Membership Reward points, Citi ThankYou points, and Bilt points. However, Capital One’s flexible travel rewards are called miles, which is an exception. Hotels also use points in their reward systems. For example, hotel stays and spending on co-brand hotel credit cards can earn you points like Hyatt points, Hilton Honors points, Marriott Bonvoy points, or IHG Reward points.
Airlines use miles as their reward currency in most cases — like Delta SkyMiles, United miles, and American Advantage miles (though they’ve incorporated Loyalty Points as a way to reach elite status). JetBlue is an exception here, which names its reward currency TrueBlue points. Southwest also considers its reward currency points.
The distinction between points and miles isn’t always clear. When figuring out how and what to earn (and later redeem), instead of focusing on the literal vocabulary (points vs. miles) it’s best to consider the difference between flexible rewards and rewards you earn in use in just one program.
The actual terminology isn’t what’s important; instead, it’s about how you’re able to use them. Below, we’ll explain more about each currency and how to figure out your options for earning and redeeming each so you can focus on getting the right credit card and earning the best combination of points and miles for you.
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Earning miles with travel credit cards
Usually, you can earn miles using airline credit cards. These cards work with a specific airline and allow you to accrue miles specifically with that airline. An exception is Capital One Miles, which you can use to book travel in the Capital One Travel Portal or transfer to a number of different airline and hotel partners for added flexibility. However, most miles are tagged to a certain airline, so users are limited in how they can use them. These are the miles I’ll focus on in this section.
Pros of miles
- Easy to earn and redeem if you’re a frequent flyer on that airline
- Focusing on earning airline miles can lead to perks like elite status
Cons of miles
- Little to no flexibility when it comes to award availability
- You’re at the airline of choice’s whim when it comes to devaluations
For example, let’s talk about Delta’s mileage currency. You can earn Delta SkyMiles by spending on Delta credit cards or flying with Delta (or other SkyTeam partners). You can redeem Delta SkyMiles for award tickets on Delta.com. Though you can book on Delta and fly on other SkyTeam partners using this currency, SkyMiles are limited in the sense that you can’t transfer them to other airlines.
By focusing only on earning Delta SkyMiles, you may be able to earn Delta elite status. Flying just one airline and spending on just one co-brand credit card can afford you perks with that airline. That said, if Delta devalues its miles, you’re out of luck.
When it comes to miles specifically, it’s best not to hoard them. While I could say the same about transferrable points, they have more flexibility. If one airline devalues its miles, you could still transfer your points to another program for maximum value. But if you’re only earning one mileage currency and that airline chooses to change up its loyalty program, your very valuable stash of miles could suddenly become much less valuable with little to no notice.
Earning points with travel credit cards
Most points currencies are flexible rewards, meaning you can use them in a variety of ways. Without knowing much about points and miles, it’s simple to see that whichever currency (points, in this case) offers more flexibility is better because you’ll have many ways to earn and burn, like transferring them to various partners. This makes it more likely that you’ll not only earn more points but also that you can use them in valuable ways, even when specific programs devalue their own miles.
Pros of points
- Flexibility for redemptions — you can transfer, redeem via travel portals, and more
- Many ways to earn — you can earn points through various credit cards, on travel portal bookings, and more
Cons of points
- Because there are more redemption options, it can be confusing to figure out how to redeem points for the best value
- Not all airlines have transfer partnerships with point programs
- They won’t help you earn status with an airline
You can earn points with flexible rewards travel credit cards — some of the most popular options are cards like the Chase Sapphire Reserve, which earns Chase Ultimate Rewards points; and the Amex Platinum, which earns Amex Membership Rewards.
The outlier here is all in the name itself: Capital One cards, such as the Capital One Venture X, earn Capital One miles – a flexible reward currency. However, these miles function like points.
This is why the vocabulary of points vs. miles isn’t the important part here — it’s just terminology. The real comparison is flexible reward currencies vs. single loyalty program currencies.
How to choose the card that’s best for you
When it comes to deciding how to earn points or miles, start with a credit card that can help you earn more of whatever currency you think is the best fit. If you’d rather earn miles (or points) with specific airlines or hotels, a co-brand card is best. If you’re in the market for flexible rewards, a flexible rewards travel card is a better, more versatile choice. Here’s how to decide what type of card to get.
Your travel style and goals
When deciding on a points or miles-earning credit card, start by taking a hard look at how you travel. Do you always fly with one favorite airline? Or do you book the cheapest flight available? How frequently do you travel? Is earning elite status important to you? Do you frequently fly to a specific destination or airport?
Determining your travel style and travel goals is important. For example, if you frequently fly to France, you might want to get a flexible rewards card with points you can transfer to Air France, but you also have options to transfer to other European partners. The Chase Sapphire Preferred can be a great option in this case.
If you are a United loyalist, it’s best to get a United co-brand card like the United Explorer, which can help you reach United elite status faster, earn United miles, and provide perks like free checked bags. If you prefer to book travel via an Online Travel Agency (OTA), you might want to get the Capital One Venture X, which gives you a $300 annual travel credit for bookings within its travel portal, powered by Hopper.
Your spending situation and credit
Since certain credit cards offer bonus points for spending in specific categories, it’s best to think about what you normally spend on and then get a card that offers you bonuses in that area. For example, if you eat out a lot, you might want to pick up the Amex Gold card, which earns 4X points on dining out at restaurants. If you frequently spend and stay at Hilton hotels, a Hilton co-brand card might be a good option for you, such as the Hilton Aspire, which also offers useful perks like complimentary Hilton Honors Diamond elite status.
Just know that your credit score is a factor in getting a credit card. Many premium credit cards require good to excellent credit.
Spend bonuses
Certain cards offer welcome bonuses — you may be able to earn more than 100,000 points (or miles) in some cases. If you know you want to get a specific card, do some research to see what type of welcome bonuses the card has offered in the past to see if you should wait a little longer or apply right away to get the best bonus possible. Getting into debt in order to earn points or miles is never a good idea, so make sure you’re able to meet the card’s spending requirement in order to earn the welcome bonus.
Business vs. personal
A business credit card might be a better pick than a personal card, depending on your situation. Some of the best business cards, like the Amex Business Platinum card, offer flexible reward points you can transfer or redeem on the bank’s own travel portals. Many business cards offer bonus points on business spending categories.
Summary
Some cards and loyalty programs work with miles, and others use the term points. But what’s really important here is the flexibility in how to use the points or miles. Whether or not a reward currency is tied to a single program or offers the ease of being transferrable makes all the difference when deciding which credit card to get and which programs to use.
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