What’s The Point of Using Travel Credit Cards Instead of a Simply 2-3% Cash Back Card?

In the credit card world, the debate between cashback and travel cards is seemingly timeless as to which card type benefit helps you earn more. Undoubtedly, devotees on both sides swear that one benefit is “better” than the other for various reasons, many of which make sense and only help strengthen the argument for both sides. 

One Quora user is posting a similar question and is diving headfirst into this debate by asking why those who use credit cards to earn miles are doing so instead of earning 2% cashback with every purchase. It’s a good question that evokes strong responses from those who favor each side. 

As someone who doesn’t wade into the travel card space, I can personally side with the cashback fans, but I can also see why those who travel frequently find their cards to be equally good value. 

The Ongoing Debate

While the debate between cashback and travel cards isn’t as timeless as trying to choose between Ford or Chevy or Android or iPhone, it’s a similar debate that has been raging for the last 20 years. In the case of this Quora question, this person just ripped the bandaid off and asked point blank why you would choose one side over the other. 

The first commenter favors travel cards, but they should also be a travel card person as they frequently travel for work. In this case, benefits like receiving 25% off Wi-Fi, food, and snacks with a specific airline are perks of the credit card. The same credit card gives them priority access for boarding, something you generally have to pay for, so preferring this card type makes total sense. 

In their view, they are getting almost double the cash benefits with a travel card over cashback, but what they are not considering is how many hoops you might have to jump through to cash in these points or miles. Cashback redemption is very straightforward, and there are no hoops or circles to jump through as it’s just straight cashback redemption to a bank account or statement balance. 

Which Is More Straightforward

For people who want to make purchases on their credit card and then move on to the next thing in their day, the cashback credit card is the best option. With travel, you have to know exactly where you want to go, when, and how you want to get there, and then look through the credit card’s travel portal to try and make everything work. 

Are there blackout dates? Are there airlines where you have a status that you can’t use? There are many open-ended questions you won’t know until you start diving into what’s possible, and it’s not always simple answers, which can make using a travel card frustrating. 

The opposite is true with a cashback credit card, as it is as easy as spending and earning. Spend and earn. This is all there is to it, as you don’t have to worry about consolidating rewards over time before taking advantage of this benefit. You can cash in rewards after one month, especially after making a large-ticket purchase. 

With a travel card, you accrue points over time before taking advantage of it, and depending on how much you spend, it could take a long time to accumulate enough points to take a meaningful trip. 

Ask Yourself What’s More Important

In the Quora comment section, at least one commenter highlights that taking advantage of multiple 5% cashback credit cards can earn quite a bit faster than a travel card. Better yet, cashback rewards never expire, and there is an unlimited cap on flat-rate earnings, so you can accrue for years before you have any interest in cashing in and spending on something else. 

Ultimately, this question comes down to what’s more important to you. Are you someone who travels frequently for either personal or work-related reasons? If so, a travel card that can get you status might be beneficial. However, if you only travel once per year, or maybe even twice, there is little reason to think that cashback rewards wouldn’t be of more value. 

No matter which card type you choose, ensure you are not overspending to rack up rewards, otherwise, you’ll find yourself owing more than you have earned in benefits.