When collecting frequent flyer miles, a travel credit card with miles is more flexible than an airline credit card since it doesn’t tie you down to a specific airline. However, if you’re a loyal flyer of a particular airline, we recommend you consider the UnitedSM Explorer Card, the Delta SkyMiles® Platinum American Express Card, or the Citi® AAdvantage® Executive World Elite Mastercard®. Travel hackers know that the best way to earn miles is by using rewards credit cards that offer miles through signup bonuses, everyday spending, and membership renewals. What is the difference between credit card and frequent flyer miles, and how much are they worth on average? This article will answer these questions and guide which cards to consider if you regularly fly with United, Delta, or American Airlines.

Credit Card Miles: What Are They?

It’s important to note that the terms “miles” and “points” are often used interchangeably in the credit card rewards world. Some credit card companies refer to their rewards as “points,” while others call them “miles.”

For instance:

• Chase’s rewards program is called “Ultimate Rewards® points.”
• Capital One’s rewards program is called “Capital One.Miles”

Airlines also use this terminology:

• American Airlines’ rewards program is called “AAdvantage® miles.”
• JetBlue’s rewards program is called “TrueBlue points.”

Regarding rewards earned through flying, “miles” usually refers to frequent flyer rewards, while “points” typically refer to credit card rewards. However, this is only sometimes the case, so avoiding getting too caught up in the terminology is essential. Regardless of what they’re called, credit card rewards can be a precious tool for travel hacking.

Credit card miles vs. frequent flyer miles

Credit cards and frequent flyer miles are reward programs, but critical differences exist. Let’s take a closer look.

Earning Rewards

Credit card miles, also known as points, are rewards given to you by your credit card issuer. You can earn points through credit card welcome bonuses, using your card for purchases, or anniversary bonuses. These types of issues are not co-branded with an airline. For example, the Chase Sapphire Preferred Card earns Chase Ultimate Rewards points.

Airline miles are rewards you receive for flying on an airline. You can also earn them through credit card spending with a co-branded airline credit card. Airline credit cards award frequent flyer miles for the airline on the front of your card. For example, you will earn United Airlines miles if you have a Chase United Airlines card.

Redeeming Rewards

Redeemable airline miles can generally only be used for flights. Some exceptions include using mileage to reserve hotels and rental cars or purchasing airport lounge access and merchandise. However, you will get a low value per mile. You cannot cash out airline miles or use them to receive a statement credit on your card balance. Airline miles should only be used for award seats on a plane.

Credit card miles are much more flexible. You can use them for a variety of things, not just flights. For example, Capital One miles can be cashed out at one cent each, transferred to airlines for nearly free flights, transferred to hotel programs for free hotel stays, or used to “buy” travel at a rate of one cent per mile.

Elite qualifying miles/points are another type of airline currency. These are not redeemable for free flights. Instead, you earn them (usually simultaneously with redeemable miles) to achieve elite status. Airlines often let you earn status miles by making purchases with their credit card, through dining programs, online shopping portals, etc.

In summary, credit card miles are more flexible than airline miles. Credit card miles are better if you are not loyal to a specific airline.

Credit Card Miles vs. Cash Back: Which is Better?

Regarding credit card rewards, cash back is the ultimate currency. It offers complete flexibility, allowing you to use it for flights, hotels, meals, or rent payments. However, credit cards that earn travel rewards are the better option if you want to travel. Here’s why:

• Cashback is fixed at a 1-cent value per point earned, whereas travel rewards can be worth much more depending on how you use them.
• Travel rewards can also be redeemed for a statement credit, making them as valuable as cash.

Credit card miles are a great way to maximize rewards value, but it requires knowledge of the travel rewards world. Cashback credit cards are an excellent alternative for those not willing to dive into the world of rewards travel.

While cashback is more flexible, travel rewards can offer significantly more value when redeemed properly. Ultimately, it comes down to your spending habits and goals. Choose the rewards program that aligns best with your lifestyle.

How much is a credit card mile worth?

Many people ask how much a credit card mile is worth, but no one-size-fits-all answer exists. The value of your miles depends entirely on how you use them. Here are a few examples of how I’ve redeemed credit card miles in the past and the value I’ve received:

• Transferring Amex Membership Rewards® points to Delta to get a fancy lie-flat business class seat to South America: 16 cents per point.
• Transferring Chase Ultimate Rewards® points to Hyatt to book a suite at the 5-star Andaz Maui: 4 cents per point
• Booking a domestic short-haul economy flight through the Chase Travel Portal: 1.25 cents per point
• Transferring Amex Membership Rewards® points to Hilton for a five-night stay at the Waldorf Astoria Maldives: 3.8 cents per point.

As you can see, the redemption values can vary widely, so calculating the average value of a credit card mile is not helpful. However, a good rule of thumb is to aim to redeem your miles for at least 1 cent each. If you can’t routinely achieve that goal, you’re better off collecting cash back, as you’re guaranteed to receive 1 cent per point.

How much is a frequent flyer mile worth?

The value of your airline miles also depends on how you redeem them. Generally, you’ll get the best deal for your miles by booking international business or first-class seats. Some of these fares cost more than $10,000 in cash.

Here are a couple of examples to illustrate the point:

• You can fly round-trip first class from the west coast to Japan on ANA (a significant airline in Japan) for as little as 110,000 Virgin Atlantic points. That same ticket costs over $15,000 in cash, giving you a value of more than 13 cents per point.
• You can fly between Chicago and Dallas on Delta for 10,000 points. The same ticket costs around $180, giving you a value of 1.8 cents per point.

However, there are exceptions to the rule. Southwest and JetBlue price their award seats based on the cash price of the ticket, so if prices are high, the points price will also be increased. You can receive a value of 1.5 cents per Southwest point and 1.4 cents per JetBlue point.

Airline Credit Cards vs. Travel Credit Cards

After establishing that travel credit card miles are more flexible and valuable than the miles earned from airline credit cards, let’s go beyond credit card rewards for a moment.

The best travel credit cards typically offer more valuable travel benefits than airline credit cards.

For instance, non-airline travel credit cards, such as the Chase Sapphire Preferred® Card, often include trip delay insurance, baggage delay insurance, primary rental car insurance, and more.

In contrast, airline-specific travel benefits, like primary boarding, free checked bags, and airport lounge access, are often exclusive to airline credit cards. While some airline cards offer travel protections like trip delay insurance, it’s rare.

If you’re not loyal to a particular airline, it’s better to carry a generic travel credit card instead of an airline credit card.

The Best Credit Cards for Frequent Flyers

If you’re a frequent flyer, consider adding an airline credit card to your wallet. Here are the best airline credit cards for United, Delta, and American Airlines.

UnitedSM Explorer Card

The UnitedSM Explorer Card is a well-balanced travel credit card that offers excellent United-focused perks and benefits that will improve your airport experience. The card offers a welcome bonus of 50,000 bonus United miles after spending $3,000 on purchases within the first three months from account opening. That’s enough for a round-trip flight to Hawaii or the Caribbean.

Here are the ongoing perks you should know about:

• Free first checked bag for you and one companion when traveling on United (you must also use the card to pay for the cash portion of your fare)
• Priority boarding
• Global Entry, TSA PreCheck®, or NEXUS application fee credit (worth up to $100)
• Increased award seat availability
• Two single-use United Club airport lounge day passes.

This card also has excellent travel insurance, similar to the Chase Sapphire Preferred®. You’ll get trip delay insurance, baggage delay insurance, primary rental car insurance, and more.

The card comes with a $95 annual fee, waived for the first year. That means it’s free to open and try for a year before you’ve got to invest any money into keeping it. If you find it doesn’t fit your lifestyle, you can cancel it without harm.

Delta SkyMiles® Platinum American Express Card

The Amex Delta SkyMiles® Platinum is a mid-tier airline credit card with a $250 annual fee. For that price, you’ll receive benefits like:

• Free first-checked bag for you and up to eight other passengers on your reservation
• Priority boarding
• Global Entry or TSA PreCheck application fee credit (worth up to $100)
• Discounted Delta Sky Club airport lounge access
• 10,000 Medallion Qualifying Miles (which you need to achieve Delta elite status) after spending $25,000 on purchases in a calendar year (up to two times)
• Annual Delta companion certificate

This card also comes with a limited-time increased bonus of 80,000 Delta miles after spending $4,000 on purchases within the first six months from account opening. For that amount of points, you should have no problem booking a round-trip coach flight to Europe for nearly free. (Offer ends 11/09/2022)

Citi® AAdvantage® Executive World Elite Mastercard®

The Citi® AAdvantage® Executive is a premium airline credit card with the potential to save you thousands of dollars each year. It comes with a modest bonus: 50,000 American Airlines miles after spending $5,000 on purchases within the first three months from account opening. During off-peak travel dates, you can fly round-trip to Europe or book two round-trip flights to the Caribbean.

Where this card shines are its American Airlines-focused benefits:

• Free first-checked bag for you and up to eight travelers on your reservation
• Priority check-in and boarding
• 10,000 Loyalty Points (which you need to achieve American Airlines elite status) after spending $40,000 per qualifying status year)
• Global Entry or TSA PreCheck application fee credit (worth up to $100)
• American Airlines Admirals Club airport lounge membership with guest privileges (worth $650 per year)

The star of the show here is the Admirals Club membership. American Airlines has some excellent lounges sprinkled throughout the country. But here’s a super valuable hack: you can add up to 10 authorized users for free — and each authorized user gets their own Admirals Club lounge membership. In other words, you could gift up to 10 Admirals Club memberships (each worth $650) to friends and family for zero dollars. Each authorized user can also bring up to two guests or immediate family.

This card charges a $450 annual fee. Suitable for all the potential value you can squeeze from it.

One final note on this card, and all Citi credit cards, for that matter. You’ll find no travel insurance whatsoever. If you can help it, you should never book travel with a Citi credit card.

Travel Rewards Credit Cards vs. Frequent Flyer Miles: Which is Better?

A travel rewards credit card may be the way to go if you want to earn rewards while making purchases. These cards allow you to earn credit card miles with every purchase, which you can redeem for any future travel purchases on that card. You can also transfer those miles to airline and hotel partners for added value or cash them out if you have no desire to travel.

On the other hand, frequent flyer miles you earn by flying or using an airline’s branded credit card are much more limiting. While some airlines allow you to book hotels and rental cars with your miles, the value is notoriously low. The only reasonable way to redeem them is for award flights.

Credit cards and airline miles can provide significant value if you know how to use them effectively. However, we recommend collecting travel credit card rewards if you want to maximize your rewards and enjoy nearly-free travel. With these rewards, you can transfer them to various airlines, so you’re not limited to booking with one specific airline.