Cashback is simple, certain, and flexible, which is why it suits most people. You earn a percentage of your spending back as money, you can use it for anything, and its value never changes because of an airline's award chart or a programme devaluation. There is no searching for award seats, no blackout frustration, and no risk that your rewards will expire before you use them.

Cashback also wins when your spending is modest, because the extra value that points offer usually depends on accumulating enough for a meaningful award. If you spend relatively little on a card, the simplicity of cashback and the certainty of its value will usually beat a points balance that takes years to become useful, and that is a perfectly sensible choice rather than a missed opportunity.

Points win when they are transferred to airline or hotel partners and redeemed for high-value travel, particularly long-haul flights or peak-season trips where cash prices are high. In those cases, a point can be worth several times its cashback value, which is why frequent travellers and award enthusiasts prefer points despite the extra effort involved in using them well.

Points also offer flexibility that cashback does not, since a single flexible points balance can be transferred to many different airlines and hotels depending on the trip. That flexibility is valuable when your travel plans change, because you are not locked into one airline's programme, and you can choose whichever partner offers the best deal for each particular journey.

The fair comparison is not between the best possible points redemption and an average cashback rate, but between what you will realistically achieve. If you enjoy researching awards, travel at least a few times a year, and can be flexible about dates, points will probably beat cashback for you. If you rarely travel, dislike planning, or value simplicity, cashback will probably win, and chasing points you never use well is worse than either option.

Also consider the cost of the card itself. Points cards often carry higher annual fees than cashback cards, and that fee must be earned back before any advantage counts. Add up your expected rewards for a year, subtract the fee, and compare the result honestly with a no-fee cashback card. The card that leaves you better off after fees, given your real spending and travel habits, is the right card for you.

If you are unsure, start with your travel habits rather than with the cards. Look at how many trips you took last year, how much you spent on flights and hotels, and whether you enjoyed planning those trips or found it a chore. Those answers predict your points success far better than any comparison table, because the best rewards strategy is the one you will actually follow through on.

You can also combine strategies, using a points card for travel and dining where it earns most, and a cashback card for other spending, provided you pay both in full each month. Whatever you choose, the golden rule remains the same: never carry a balance to earn rewards, because interest charges will always cost more than the rewards are worth.

Whichever side you choose, review the decision once a year, because your spending, travel habits, and the rewards market all change over time. A cashback card that suited you when you rarely travelled may no longer be best once you fly regularly, and a points card that once delivered great value may lose its edge after a programme change. An annual check takes minutes and ensures your rewards strategy keeps working for the life you actually live.