Points or cashback is the first question every rewards beginner asks. Cashback is simple and immune to devaluation, while points are complicated but potentially far more valuable.

Cashback wins on certainty: 2% back is 2 dollars per 100 spent, with no blackout dates or expiry. If you would not redeem points for more than 1.5 cents each, cashback is the better choice.

Points win on premium travel. A business class award can deliver over 4 cents per mile, and short-haul sweet spots beat cashback comfortably. The catch is effort, flexibility and devaluation risk.

Decide with three questions about travel frequency, willingness to search, and interest in premium cabins. Transferable bank points offer a hybrid answer, converting to miles or cashback as needed.