Credit Card Points vs Airline Miles - What's the Difference

If you are enrolled in a credit card rewards program or an airline loyalty program, you’ve likely heard the terms points and miles thrown about.

While they are often used interchangeably, it is important to address the question of

“Is there a difference between points and miles?”

Now, many of you readers might already know this, but there may be some details you may have missed that can benefit you in the long run.

Here’s what you need to know.

Points are a digital currency, used in any reward based system, that you earn by spending on your card. Points are general purpose, which means you can use them for both travelling and the odd amazon impulse buy.

Here’s the important bit. Points can be converted to miles. By transferring them to an airline program, you can use them to book flights and hotels. Another thing to note is that point values are different between different card programs, with some programs offering incentives to spend on various sectors.

Miles are a type of currency associated with specific airline programs, which also work in the same point style system. You can earn miles through through spending money on an airline, flying a certain number of miles, taking advantage of promotions, or transferring credit card points into the program. One thing to note is that some airlines don’t use the term “miles”, as it is a purely American term. Other airlines offer similar rewards under different names.

Now, some of you smarter readers may have figured out that all points are miles, but not all miles are points.

The way you earn miles really depends on where you spend your money—and that’s a key part of the game. You only earn miles by spending, but there are smart ways to maximize that without blowing your budget.

Co-branded airline credit cards are hands down the best way to rack up miles without stepping on a plane. Cards like the Delta SkyMiles® Gold American Express Card give you 2x miles on everyday things like dining and groceries, plus a welcome bonus of up to 80,000 miles. That’s a ton of value just from stuff you were already going to buy. On top of that, co-branded cards often come with airline perks like lounge access, travel credits, priority boarding, and free checked bags.

If you’re not ready to lock in with a specific airline card, you can still earn miles by being strategic about how you buy flights. Most major U.S. airlines now use a revenue-based system—meaning you earn miles based on how much you pay, not how far you fly. Unfortunately, this hits budget travelers the hardest. We wrote an article breaking down the whole shift (link here), but in short: unless you're spending a lot on flights, you're likely earning fewer miles than in the old distance-based days.

Redeeming miles is pretty simple. When searching for flights on an airline’s website, just choose the “Book with Miles” option and you’ll see the ticket prices shown in miles instead of dollars. Usually, these redemption rates follow the cash price of the ticket-called revenue pricing. But here’s where it gets interesting—airlines sometimes release saver awards, which are the cheapest redemption levels you can get.

These are limited and competitive, but totally worth hunting for. For example, five-star airline ANA offers round-trip saver awards from the U.S. to Japan for as low as 75,000 miles in business class (depending on availability). To snag deals like that, you’ll have to plan ahead and check regularly—but they’re out there.

Please note this bonus is not still valid.

Just like with miles, the easiest way to earn a bunch of points is through smart credit card use, especially by stacking everyday spending with welcome bonuses.

Take the Chase Sapphire Reserve® for example. It gives 5x points on flights booked through their portal. Not only is that an absolute steal, but you also get a 60,000-point welcome bonus and a $300 annual travel credit. And here’s the kicker: The great thing about earning points instead of airline miles is flexibility. Points from cards like this can be transferred to various airline and hotel partners, or used directly through their travel portal to book anything from flights to hotels.

Credit cards often give you the biggest bang for your buck when it comes to earning. Large welcome bonuses alone can be worth hundreds of dollars in travel—and that's before you even factor in your regular spending.

Redeeming points is all about flexibility. Each credit card program has its own travel portal—like Chase’s Ultimate Rewards or Amex’s Membership Rewards—where you can use your points directly to book flights, hotels, rental cars, and more.

But the real value often comes from transferring your points to airline or hotel partners. For example, transferring Chase points to Air Canada Aeroplan or Singapore KrisFlyer can unlock business class seats for far fewer points than if you just used the portal. We’ve got a full award chart showing all the best transfer partners and how to get the most value.

Let’s be real. Those massive 60k–100k welcome bonuses are awesome, but they come with spending requirements. And unless you’ve got a new kitchen remodel on the way, you might need to get creative. A few smart ways to hit that minimum spend:

Prepay your phone bill or streaming services.

Buy gift cards to stores you know you’ll use later (buying VISA cards is common, but this method has since been patched for some programs.)

Offer to cover group dinners or tickets, then get reimbursed. As an added bonus, you get to plan a nice meal with your friends!

You’re not spending extra—you’re just shifting your usual spending in a smarter way.

Everyone knows about swiping your card, but there are sneakier ways to rack up extra points and miles:

Shopping portals: Airlines and credit card issuers all have them. Click through the portal before buying online, and you’ll earn bonus points just for existing.

Dining programs: Link your card to an airline dining program. Eat at participating restaurants. Get extra miles without doing anything different.

Bill payments: Services like Plastiq let you pay rent or utilities with your card. Sometimes there's a fee—but if you're chasing a bonus, it can be worth it.

You don’t need the best card, you just need your best card.

Just starting out? Go for something like the Chase Sapphire Preferred or Amex Green. Low fees, good rewards.

Frequent flyer? You’re probably ready for the Chase Sapphire Reserve, Amex Platinum, or Capital One Venture X.

Loyal to one airline? Get a co-branded card like the United Explorer, JetBlue Plus, or Delta Platinum. You’ll get perks like priority boarding and free checked bags—and probably a big chunk of miles up front.

Remember, you hold the cards here (literally!), so take your time, weigh your options, and make sure to pick the one that's the right fit for you.

Not every redemption is a win. If you’re redeeming 25,000 miles for a $150 domestic flight, that’s only 0.6 cents per mile. That’s weak. In that case, pay with cash and save your miles for something better.

Basic rule: shoot for at least 1.5 cents per point/mile in value. Anything less? Meh.

This is where things get good. Some of the best deals out there are just sitting quietly, waiting for someone who did their homework:

ANA business class to Tokyo for ~75k roundtrip using Virgin Atlantic miles

Short flights on American Airlines for 13k Avios (British Airways partner magic)

Hyatt off-peak hotel redemptions—ridiculous value if you know where to look

These are the redemptions people brag about online. And hey, they earned that right.

You don’t need to turn into a spreadsheet wizard. There are actual tools built to help you game the system. Here are a few of our favorites:

AwardWallet: Tracks all your balances and warns you before points expire

Point.me: Compares award flight options across airline programs

CardPointers: Tells you which card to use at which store to max out your earnings

Seats.aero: Points geeks love this one—it finds the cheapest award redemptions for routes or dates of your choice

AwardTool: Works like Google Flights—just put in your trip and it shows all the different awards available, including which programs to transfer your points to from your credit card

No gatekeeping here—these are the best out there

Points and miles might sound complicated at first, but once you break it down, it’s all just strategy. Know what you’re earning, how to earn more of it, and when to actually use it.

Do your own research and make the smarter choice. Once you start getting the basics down, you’ll realise just how much you can save on the little things. Every day spending becomes flights, upgrades, and maybe even a free or two. All you have to do is follow our tips, and while you’re at it, stay tuned for some more insider knowledge and trade secrets that are sure to make travel a breeze!