Cashback vs Points: Which One Actually Puts More Money in Your Pocket?

Let’s be real—credit card rewards can feel like free money, but only if you’re using them right. The whole cashback vs points debate isn’t just about what looks better on paper—it’s about what actually works for your spending habits.

At Wealthy Swipe, we don’t just throw financial jargon at you. We break it down so you can decide: Do you want cold, hard cash? Or do you prefer the thrill of unlocking travel perks and luxury rewards?

If you’re in the UK, USA, or Canada, this guide will help you pick the best option—no fluff, just straight-up useful info.

Cashback vs Points: What’s the Real Difference?

Cashback – The No-Nonsense Option

Cashback is simple: Spend money, get cash back. No games, no complicated redemption rules.

• How it works: You earn a flat percentage (like 1.5%) or bonus rates in certain categories (like 5% on groceries).

• Best for: People who want real money back without jumping through hoops.

Popular Cashback Cards:

• USA: Chase Freedom Unlimited® (1.5%–5% back) – Great for everyday spending.

• UK: Amex Platinum Cashback Everyday (Up to 5% in first year) – Solid for general use.

• Canada: Scotiabank Momentum® Visa Infinite (4% on groceries & gas) – A beast for household spending.

Points – The Travel Hacker’s Dream

Points are more flexible but can be confusing AF if you don’t know how to use them.

• How it works: You earn points per £/$ spent, which can be redeemed for flights, hotels, gift cards, or even cash (but usually at a lower value).

• Best for: Frequent travelers or people who love maximizing value through strategic redemptions.

Popular Points Cards:

• USA: Chase Sapphire Preferred® (1x–5x points) – Killer for travel & dining.

• UK: British Airways Amex (1–3 Avios per £1) – Perfect for BA flyers.

• Canada: Amex Cobalt (5x points on food & drinks) – A foodie’s best friend.

Cashback vs Points: Which One Actually Wins?

1. The Simplicity Test

• Cashback wins. You spend, you get cash. No spreadsheets, no transfer partners, no blackout dates.

• Points require effort. To get the best value, you’ll need to learn airline alliances, transfer bonuses, and redemption sweet spots.

2. The Value Game

• Cashback is predictable. $100 spent = $1–$5 back (depending on your card).

• Points can be worth WAY more… if you know what you’re doing.

  • Example: 50,000 Amex Membership Rewards could be:

    • $500 in cash (1 cent per point)

    • $750+ in flights if transferred to an airline like British Airways or Air Canada.

3. The Spending Factor

• If you spend mostly on groceries, gas, and bills → Cashback (higher flat rates).

• If you dine out a lot, travel, or book hotels → Points (higher multipliers).

4. The Annual Fee Trap

• Cashback cards usually have low or no fees (e.g., Citi Double Cash: $0 fee, 2% back).

• Points cards often charge $95–$700/year but come with perks like free checked bags, lounge access, and travel credits (e.g., Amex Platinum: $695 fee but $200+ in annual credits).

When Should You Pick Cashback?

✅ You hate managing rewards programs.
✅ You don’t travel much. (No point hoarding airline miles if you never fly.)
✅ You want instant, flexible rewards. (Cash is king—use it for anything.)

Best Cashback Move: Pair a flat-rate card (like 2% back on everything) with a category card (like 5% on rotating bonuses).

When Should You Pick Points?

✅ You fly at least 2–3 times a year. (Points can = free flights & upgrades.)
✅ You’re willing to learn redemption tricks. (Otherwise, you’ll leave value on the table.)
✅ You spend heavily on travel & dining. (Points cards reward these the most.)

Best Points Move: Get a travel card (like Chase Sapphire Preferred) and pair it with a no-fee points card (like Amex Everyday) to stack rewards.

The Ultimate Test: Cashback vs Points in Real Life

Let’s say you spend $1,500/month:

• $500 on groceries

• $400 on dining

• $600 on other stuff

With a 2% Cashback Card:

• $360/year back. Simple.

With a Points Card (like Amex Gold):

• 4x on groceries & dining = 43,200 points/year

• Redeemed for travel? $430+ value

• Redeemed for cash? $216

Verdict: If you travel, points win. If not, cashback is better.

Final Answer: Should You Choose Cashback or Points?

Pick Cashback If:

• You want easy, no-brainer rewards.

• You don’t travel enough to justify a points card.

• You’d rather have cash than flight upgrades.

Pick Points If:

• You’re okay with a learning curve for bigger rewards.

• You fly often and want lounge access, free checked bags, etc.

• You spend a lot on dining, flights, or hotels.

Pro Tip: Why Not Both?

• Use a cashback card for everyday spending.

• Use a points card for travel & dining.

Best Cards to Start With

For Cashback Lovers:

• USA: Chase Freedom Unlimited® (1.5%–5% back)

• UK: Amex Platinum Cashback (5% intro offer)

• Canada: Tangerine Money-Back Card (2% in 2 categories)

For Points Enthusiasts:

• USA: Chase Sapphire Preferred® (60,000-point bonus)

• UK: British Airways Amex (Avios for flights)

• Canada: Amex Cobalt (5x on food & drinks)

Bottom Line

There’s no “best” option—just what’s best for you.

• Cashback = Simple, reliable money back.

• Points = Bigger potential value (if you work for it).

Which side are you on? Let us know in the comments!

By Wealthy Swipe – Because your wallet deserves smarter choices. 💳🔥