Beginner’s Guide: Should I collect miles or cashback?

ahh the forever miles vs cashback debate

Introduction: Cashback vs Miles Cards

Cashback cards are straightforward—you earn a percentage of your spending back as cash, which is credited to your credit card bill. This means less cash leaves your pocket, and you don’t need to worry about complex redemption processes or blackout dates.

If you’re a low spender, cashback cards are ideal because:

• You can probably stick to 1 general spending card, get 1.5+% cashback and call it a day.

• The cashback cap is usually high enough that it won’t affect you.

• There’s no need to strategize or plan—just spend and earn.
  

However, do note that some cashback cards require a minimum monthly spend (usually $500–$800) to qualify for cashback.

When Miles Make More Sense

If you’re a frequent traveler or dream of flying in business class, miles can be a game-changer. Here’s why:

• Free Flights: Redeem your miles for flights on non-budget airlines, saving you hundreds or even thousands of dollars.

• Luxury Travel: Can’t afford to pay for business class but need to lie flat on long-haul flights? Miles can make it happen.

• Airport Lounges: Enjoy free lounge access with miles credit cards, complete with free food, showers, massage chairs, and more.

• Big-Ticket Purchases: Miles cards are perfect for large expenses, like hotel banquets or electronics, where you can earn a significant number of miles in one go.
  

However, miles collection requires planning and patience. You’ll need to accumulate enough miles for your desired redemption, and award space isn’t always guaranteed. If you don’t spend enough, you might end up with only enough miles for an economy flight—which doesn’t offer much incremental value over using cashback to buy a revenue ticket.

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The Math: How Much Do You Need to Spend for Miles to Make Sense?

Let’s say you’re aiming to redeem two one-way business saver tickets to Japan within a year, which will cost you 104,000 miles (52,000 miles per ticket). If you’re earning 4 miles per dollar (mpd), you’ll need to spend $2,167 per month on your credit card (104,000 miles ÷ 12 months ÷ 4 mpd) to hit that goal. If your monthly spending falls below this amount, collecting miles might not be the most efficient option for you.

This is a conservative estimate—you could likely boost your miles with sign-up bonuses, which can add an extra 10,000 to 20,000 miles, making a significant difference. If your goals are more ambitious, such as redeeming a round-trip ticket (double the required spending) or bringing along family members (multiply accordingly), you’ll need to adjust your spending targets.

The age-old wisdom of setting goals applies here. Set clear redemption goals for yourself—perhaps a year-end Japan trip for two in business class. Find out the miles required, research available sign-up bonuses, and calculate your monthly spending target. This way, you’ll have a better gauge of whether chasing miles aligns with your spending habits—or if you’ll even be able to redeem anything meaningful at all.

It’s also important to note that most credit cards (except for Chocolate Finance Visa) exclude categories like insurance, income tax, government services, and hospital payments from earning miles. This means your spending will need to come entirely from discretionary expenses—typically dining out, shopping, and travel expenses in a typical Singaporean lifestyle. If these categories don’t make up a significant portion of your monthly spending, miles collection might not be the best fit for you.

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"I want my business class - but I don't spend enough :( "

If you’re aiming to maximize your miles (or cashback, if you prefer), here are some practical tips to increase your credit card spending:

1. Pay for big family dinners: Offer to foot the bill at family gatherings (e.g, birthdays, reunion dinners) and get reimbursed later.

2. Use Kris+: Shop at merchants that accept Kris+ to earn bonus miles on everyday purchases. There are plenty of family resturants on Kris+, which goes well with above point.

3. Offer to help older family members: Assist them with online purchases (e.g., Lazada, Shopee) and use your card.

4. Organize Family Trips: Book flights and accommodations for family vacations using your miles card.

5. Consolidate Expenses: Use your card for group expenses, like event tickets or bulk purchases, and collect payments afterward.

6. Reimbersable Expenses: If your company allows it, use your personal card to pay for your company expenses ( e.g, Lunch gatherings, company travels)

7. Stand outside NTUC and offer to help strangers paying with cash by using your credit card instead… Just kidding!
   

Final Thoughts

Both miles and cashback have their pros and cons, and the best choice depends on your spending habits and lifestyle. If you’re a low spender or prefer immediate rewards, cashback is the way to go. If you’re a frequent traveler or have big-ticket expenses, miles can unlock incredible value and luxury experiences.

Ultimately, the key is to choose a rewards system that aligns with your goals—and to maximize your spending wisely. Whether you’re saving up for a dream vacation or enjoying cashback on everyday expenses, the right credit card strategy can make all the difference.

What’s your preference—miles or cashback? Share your thoughts in the comments/poll below!

Enjoyed this article? Find more tips to accelerate your miles game! ✈️💳

📌 Beginner’s Guide: How should I start my miles journey? (Feb 2025)

📌 My 2025 Credit Card Strategy for Maximizing Miles 

📌 2025 Beginner’s Guide: The Best 4-6 mpd Credit Cards in Singapore

📌 How much is a KrisFlyer mile worth in 2025? 

📌 Fly to Bali for Free? The Stopover Trick That Gets You 2 Flights for the Price of 1!

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Survey: Miles vs Cashback

Miles vs Cashback

• Team Miles
• Team Cashback

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