Cash back is simple: 2% back is 2 cents per dollar. Points are more flexible, and more complicated. Their value depends on how you redeem them.
How much is a point worth?
As cash, most points are worth 1 cent. Booked as travel, 1 to 1.25 cents. Transferred to an airline or hotel partner, 1.5 to 2 cents or more.
When cash back wins
- You want simplicity and no research.
- You rarely travel.
- You prefer a statement credit or bank deposit.
When points win
- You travel at least a few times a year.
- You are willing to compare award prices.
- You want luxury travel for less.
Earn up to 5x points on travel, transfer points to 15 airline and hotel partners, and get up to $120 in yearly travel credits.
Rates & fees apply. Offer terms set by the issuer.
Ledgerly tip
Start with cash back. Once you travel regularly, add a points card and use it for travel and dining.
