How Do Credit Card Miles Work?

Credit card miles, sometimes referred to as points, are rewards some issuers offer cardholders for their everyday spending. You can generally redeem miles for travel-related expenses, including flight costs. While redemption values typically vary between cards, the best programs offer miles worth at least 1 cent per mile.

What Are Credit Card Miles?

Some personal and business credit cards offer miles as a reward for using your card. You’ll earn a return rate that’s set by your issuer, which can help offset eligible travel expenses. Co-branded airline card offer miles affiliated with specific airlines, meaning you can typically only redeem your rewards through that airline while others—general travel credit cards—offer unaffiliated miles that you can redeem for travel through your provider’s reward dashboard with more than one airline.

Most personal and business travel credit cards offer miles for every dollar you spend and bonus miles for spending in certain categories. While the issuer typically sets the reward return rate, airlines determine the number of miles required for flights. The number of miles you need typically varies based on where you’re going and the flight cost in dollars.

How Credit Card Miles Work

When you’re shopping for a travel credit card, you’ll see that some issuers pair up with an airline and offer airline-specific miles while other cards don’t partner with an airline. Regardless of the card you choose, the value of your miles and your redemption options will vary for each card. You can generally use these rewards to pay for travel expenses like flights.

Earning Miles

To start earning miles, you’ll need to get the right travel card, potentially considering ones that offer lucrative sign-up bonuses. Understanding the different ways you can earn miles can help you maximize your earnings.

Use these four methods to earn miles:

1. Get the right travel credit card: Open a travel card that offers rewards that compliment your monthly spending and travel habits. If you frequently travel with a particular airline, it’s best to get a co-branded card with that airline. If you don’t use a specific airline, choose a card that provides more reward flexibility.
2. Look for miles-based welcome offers: Some issuers offer lucrative sign-up bonuses, which can be a quick way to earn a substantial number of miles. You can earn these rewards by meeting a minimum spending requirement set by your provider.
3. Refer your friends: Some cards have referral programs where you can receive bonus miles if your friends or colleagues apply through your unique referral link and are approved.
4. Use multiple cards and transfer miles: If you spend big every month, it may benefit you to get multiple travel credit cards. For example, you can couple a co-branded airline credit card with a non-co-branded travel card that lets you transfer your miles to that airline. This can be beneficial because nonco-branded cards typically have broader rewards structures.

Checking Your Miles Balance

You can check your miles rewards balance on your most recent billing statement, through your online dashboard, or by calling your issuer. Your balance may not reflect all your miles as it typically takes a few days for your account to credit you with your rewards.

Redeeming Miles

You can redeem your miles when you’ve racked up enough rewards for a free flight or other travel-related expenses. While redemption methods vary for each issuer, most require you to redeem your rewards through their online rewards portal. Understanding common redemption methods can help you access the best rewards.

Redeem your credit card miles for:

• Flight tickets: Airline flight tickets are the most common way to redeem your miles. You can either purchase your flights through your issuer or if you have a co-branded airline card, you can buy your tickets through the airline’s website.
• Travel-related transactions: Most co-branded cards allow you to redeem miles for airline services, including seat upgrades, merchandise, priority boarding, and other VIP experiences. General travel credit cards typically let you redeem miles as a statement credit—an automatic credit to your monthly bill—for travel-related transactions like flights, hotels, and rental cars.
• Vacation package: Some travel cards offer vacation packages, including cruises and tours. You can sometimes redeem miles as a statement credit when you book a vacation package through a third-party travel merchant.
• Transfer points to loyalty partners: Some programs allow you to combine miles or transfer them between airlines.

Who Credit Card Miles Are Right For

Miles are most suitable for people who travel frequently, whether that’s for a personal or business-related trip. Frequent travelers will benefit more from a card with a travel rewards program because it can help them save money on flights and other travel-related services.

Credit card miles are best for:

• People who take personal trips frequently: If you often travel for leisure or other personal reasons, you can earn free flights or discounted tickets for your next trip by using your card for your regular purchases.
• People who travel for business: Miles also fit people who travel for business often. A small business credit card that offers travel rewards can help your company save money on flights and other travel services like seat upgrades or priority boarding.

If you find yourself traveling often, you should consider applying for a travel credit card. The rewards and perks you want to receive likely determine which card is best for you. Choosing a credit card that fits your spending habits and travel needs can help you get the most value from the card you apply for.

How Much Credit Card Miles Are Worth

Each credit card issuer determines the value of their miles, which may also vary depending on if you’re using a general or co-branded travel card. While issuers typically define the redemption value, airlines set the number of miles required to redeem for a flight.

The value of miles vary depending on the type of miles your card earns:

• General travel credit card miles: The typical value for general travel miles, miles not affiliated with a specific airline, is 1 cent per mile. For example, 80,000 miles is typically worth $800 in travel. However, some miles are worth more, like 1.5 cents per mile while others may be worth less.
• Airline-specific miles: The value of airline-specific miles varies for each airline and can change depending on how you redeem them. For instance, you can get more value if you redeem your miles for flights compared to merchandise. When you use miles to book a flight, the cost of the flight varies based on the date and destination of your flight.

The number of miles you need to redeem your reward for travel expenses typically depends on your issuer and airline if you have a co-branded travel credit card. Being flexible with your travel plans is essential if you want to get the best deals for your miles.

Credit Card Miles vs Points

Whether your card offers miles or points, both are essentially the same type of reward—redeemable for travel expenses. However, depending on your card, you can sometimes redeem points as cash back, which miles-based programs don’t offer. What matters most between the two, however, is the rewards program they’re linked with, such as frequent flyer, hotel loyalty, or general travel programs.

Three common types of travel rewards program are:

• Frequent flyer programs: Airline frequent flyer programs let you earn miles or points on your flights. You can accumulate rewards and redeem them for free flights.
• Hotel loyalty programs: Hotel loyalty programs let you earn points on eligible purchases and bonus points on certain categories. You can redeem your points for hotel stays, dining, and other services the hotel offers.
• General travel programs: Some issuers offer their own travel rewards program, which lets you earn miles or points for every dollar spent. You can redeem your rewards for your travel-related expenses, such as airfare, hotel stays, rental cars, and tours.

Miles and points work the same way by offering rewards for your purchases. You can redeem both types of rewards for free travel and other travel-related services. However, some programs offer more flexibility, better value, and wider redemption options compared to others.

Best Personal Credit Cards for Miles

Chase Sapphire Reserve®

While Chase Sapphire Reserve® charges a high annual fee, it gives you your money’s worth. You can earn 3x points on travel and 7x points on Lyft rides. You’re still able to redeem these points-based rewards for travel through Chase’s online rewards portal. Plus, points are worth 1.5 cents each when redeemed for travel.

Capital One® Venture®

Capital One® Venture® can save you the time you’d typically spend on tracking your rewards. With this card, you’ll earn fixed-rate miles on any purchase, no matter where you swipe your card. Use this card to access consistent travel rewards and an annual fee that’s waived the first year.

Best Business Credit Cards for Miles

American Express Business Platinum Card®

While the American Express Business Platinum Card® pays its rewards as points, you can still redeem your rewards for travel expenses through American Express. In addition to these top-tier rewards, you’ll have access to some of the best luxury travel perks on the market, including free and unlimited access to more than 1,200 airport lounges worldwide.

Capital One® Spark® Miles for Business

Capital One® Spark® Miles for Business is an ideal fit for business travelers who don’t want to take the time to track category bonuses. You’ll earn fixed-rate miles every time you swipe your card, with no limit or restrictions. You can redeem your rewards for travel-related expenses through Capital One.

Bottom Line

Miles let you earn rewards when you use your card, which helps save money on travel expenses. Redemption values typically vary, but most general travel rewards programs offer 1 cent per mile. If you travel often, choose a card that offers miles to start saving on travel costs today.