The Essential Guide to Travel Points vs Cash Back vs Other Rewards
Points Have Most Value For Travel
Wondering if travel points are better than cash back or other rewards programs? The answer is simple: travel rewards offer significantly greater value and benefits. By choosing the right credit cards, you can earn 1.5X to 3X more value, and even up to 10X more compared to cash back rewards. Maximize your earnings with travel points and unlock greater rewards for your spending.
The Power of Points for Travel
Cash back may seem straightforward, but travel rewards offer far greater value. With the right credit cards, you can earn points faster and redeem them for experiences that cash back can’t match. By stacking points with promotions and bonus offers, you can drastically reduce your travel costs, score free flights, or upgrade your flights and hotel stays. Additionally, points-based redemptions offer more flexibility for changes and cancellations, along with extra perks and benefits that come with travel-focused credit cards.
Travel Points Value Example
MR Points you can earn with the American Express Cobalt®
How many points can you collect with a $1,000 monthly spend on Groceries and Dining with the American Express Cobalt®?
This breakdown shows how quickly you can accumulate points with the American Express Cobalt® to unlock valuable travel rewards.
💳 Earn 5X points per dollar from groceries and dining for a total of 5,000 points a month or 60,000 annually
🎉 Receive 1,250 signup bonus points a month from the welcome offer first 12 months, up to 15,000 points annually
🚀 Earn a total of 75,000 points in your first year, and 60,000 annually after that
What Can You Get with 75,000 Aeroplan® Points?
The following examples show how you can maximize the value of 75,000 Aeroplan® points when using the pair of everyday credit cards we recommend. These cards come with added perks like priority boarding and one checked bag for you and up to 8 companions, helping enhance your travel experience and save you significant money.
5-8 Short Hall Round-Trips in Economy (Toronto to NYC or Chicago)
🎯 Points: 60,000 – 70,000
💰 Cash Value: Ticket $1000–$1900
💎 Value vs. Cashback: 1.5–3x
One-Way Flight to Europe in Business Class with a Star Alliance Partner
🎯 Points: 70,000
💰 Cash Value: $2000–$8000
💎 Value vs. Cashback: 3-12x+
✅ Note: These redemption rates are typical when booking strategically (avoid peak dates, book early, and choose preferred routes). Taxes and fees are not included in both cash and points bookings.
Cash Back Alternative
Cash back you can earn with a cash back credit card
How much cash back can you earn with a $1,000 monthly spend on groceries and dining using the most rewarding cash-back credit card?
🎉 Earn 10% cash back on all purchases for the first three months for a total of $300 annually
💳 Earn 4% on grocery purchases for a total of $40 monthly or $360 for the 1st year
🚀 Earn a total of $660 cash back in your first year and $480 annually after that
Grocery Store Points Alternative?
Groceries Points you can earn with a grocery store credit card
How Many Points Can You Earn with a $1,000 Monthly Spend on Groceries Using the Grocery Chain Reward Credit Card?
🎉Earn 10X points per dollar from groceries and dining for a total of 100,000 points a month
🚀 Earn a total of 120,000 annually
What Is the Value of Points in the Grocery Chain Reward Program?
🎉 Redeem 120,000 points for $120 towards health and beauty products (which are often more affordable at other retailers).
💎 Receive an additional $20 worth of bonus points during a redemption bonus promotion,
🚀 Earn a total value of $140 with your points redemption.
Bottom line
Even if you travel just once a year, travel points can offer 1.5x to over 10x more value compared to cash back or other points-based programs.
