How Do Credit Card Miles Work?

Last Updated: May 21, 2024

4 min read

Table of contents

Key points about: credit card miles and how they work

Many travel credit cards offer miles rewards but earning, and redemption options depend on the issuer.
Credit card miles usually have more flexible reward options than airline frequent flyer miles.
You can earn credit card miles on everyday purchases, not just travel purchases.

Credit card miles are credit card rewards that you may be able to redeem for travel expenses or even cash. Credit card miles reward you for using your card on everyday spending, so you can earn miles even without traveling. You can then redeem your miles to pay for travel, with the most flexible cards issuing a bank deposit or statement credit that you can use to cover hotels, flights, or other travel expenses.

Credit card miles are different than frequent flyer programs. Frequent flyer programs are typically loyalty based for a specific airline; you use your loyalty points and miles for future travel with that airline. Typically, the points or miles you earn accrues in your loyalty program account rather than in your credit card account. Some companies partner with a credit card issuer or network to offer what’s called a co-branded credit card.

The best credit card for miles for you depends on what travel reward makes sense based on your purchases and how you want to redeem your travel rewards.

What are credit card miles?

Think of credit card miles as a currency you earn in exchange for every dollar you spend on eligible purchases with a participating credit card. Unlike frequent flyer miles, which airlines usually award you in exchange for flights you’ve taken, credit card miles are normally earned based on overall spending.

Travel rewards rates vary across cards. Some issuers offer bonus rewards for certain purchases, like plane tickets or hotel stays. Once you’ve accumulated enough miles, you can redeem them for travel-related expenses, as a statement credit, or for retail purchases with select merchants.

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What types of credit cards earn miles?

Travel credit cards typically allow you to earn miles as you use your card. Most travel credit cards are either co-branded (that’s a credit card issued by a bank in partnership with an airline, hotel, or other hospitality brand) with specific airlines or unbranded (doesn’t include an airline name).

Co-branded travel cards

Some credit cards are co-branded with airlines. In those cases, you can typically use the miles you earn only for travel with the corresponding airline, but you may get added perks and membership rewards like a free checked bag, priority seating, or a free flight.

Unbranded travel cards

You may gain more flexibility through unbranded travel credit cards because they earn miles or points that you can redeem across multiple airlines. You may also use them for cash back on your card or on other travel purchases (like hotel stays and tours).

How does earning miles on credit cards work?

You earn credit card miles as a percentage of credit card spending. Most major travel rewards cards earn at least one mile per dollar spent. If that mile is equivalent to one cent, you would need 20,000 miles for a $200 roundtrip flight. With a Discover Travel Credit Card, you can easily redeem Miles as a statement credit for travel purchases or get cash.³

As with any credit card cash back or rewards program, the percentage of miles you get back varies depending on how you use your card.

Travel spending

Some travel rewards credit cards may let you earn a higher percentage of miles for spending in travel categories. For instance, you may earn one mile per dollar on general purchases but get a bonus of two or three miles per dollar if you buy airline tickets or hotel accommodations with your travel credit card.

General spending

Certain travel credit cards offer miles rewards for non-travel spending. You’ll often get more value per dollar on travel purchases. Still, other credit cards—such as the Discover it^® Miles credit card—offer the same flat rate for everything you buy — earn 1.5x Miles on every dollar of every purchase, whether airline tickets or groceries.

Bonus miles

Some travel credit cards have miles rewards programs that give you bonus miles as a reward just for signing up. With the Discover it^® Miles credit card, we’ll automatically match all the Miles you’ve earned at the end of your first year. There is no limit to how much we’ll match.²

How do you use credit card miles?

All credit card miles can usually be redeemed toward travel costs, but each card issuer provides different redemption choices. While a co-branded airline card may restrict you to depositing your credit card miles in the airline’s frequent flier program, general travel cards usually offer more flexible redemption options for every credit card mile you accumulate. For example, with the Discover it^® Miles credit card, you can easily redeem Miles as a statement credit for travel purchases or get cash.

Redeem for a statement credit

Some cards let you redeem miles for cash, which you can use to cover travel purchases, general spending, or even to offset your annual credit card fee (if you have one).

Did You Know?

Certain travel credit cards offer flexible redemption options. With the Discover it^® Miles Card, cardmembers can turn Miles into cash. Or redeem as a statement credit for your travel purchases like airfare, hotels, rideshares, gas stations, restaurants and more.³

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Redeem for merchandise

Some travel credit cards let you use miles earned to buy merchandise sold through affiliates or even a retail gift card. It’s easy to redeem rewards with the Discover it^® Miles card. Redeem your rewards in a few easy steps at Amazon.com⁴ and PayPal.⁵

What’s the difference between miles and points?

The terms “credit card points” and “credit card miles” are often used interchangeably. You earn both as you spend money on your credit card. Each reward’s value depends on the underlying rewards program. In some cases, one point is equal to one mile. However, the two reward currencies aren’t exactly the same. Miles relate more directly to travel. You’ll want to look closely at the terms and conditions of each card before applying to see how you earn and redeem within the program.

Many airlines let you earn loyalty airline miles for booking flights, even if you don’t have a travel credit card. But know that these miles may have more restrictive redemption rules than credit card miles.

Some co-branded credit cards may combine miles you earn from spending with miles earned by flying. On the other hand, un-branded credit card miles often give you more flexible redemption options than airline miles. If you don’t have a co-branded card with an airline, you likely can only exchange your miles for additional flights, not statement credits, merchandise, or a gift card.

Are all credit card miles rewards the same?

A credit card miles rewards program typically offers you some travel benefits. But they’re not all created equal. To use your credit card miles, you have to understand how your credit card miles work, as programs offer different ways to accrue and redeem them. You should also look out for rewards that best align with how you use your card — whether that’s flights, hotel stays, or something else entirely.

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