How do credit card miles work?

With travel rewards credit cards, you can earn rewards in the form of miles or points by making purchases with the card. When you’re ready to redeem, you can use your rewards for your next trip or as a statement credit on your account.

Find out how credit cards with miles work, including how to earn and redeem them.

What you’ll learn:

• A travel rewards cardholder typically earns miles by making purchases with their card. 

• Major travel card categories include airline cards, hotel cards and general travel cards.

• Rewards redemption options vary by card. But they can include things like covering travel-related purchases or redeeming rewards for a check, statement credit or gift card. 

• Some card issuers offer bonuses for opening a travel card and spending a set amount with the card in a specified period of time.

Miles are a type of credit card reward you can earn on purchases made with travel rewards cards. One of the ways you can use those miles is as currency toward different types of travel expenses. Some common options include flight purchases, hotel rooms and car rentals. Exactly how you earn and redeem miles varies by card type, card issuer and the number of miles you have.

Here are three types of travel credit cards that typically offer miles as rewards:

• Airline credit cards: Some credit card issuers partner with an airline to offer customers these cards. Using the card to book flights with the airline might offer even better rewards. And cardholders can use the airline miles they earn to book flights or get other perks through the airline and its partners. 

• Hotel credit cards: Hotel cards work a lot like airline cards. But in this case, a credit card issuer partners with a hotel or hotel chain. Cardholders can earn rewards by using their card and redeeming the rewards for hotel stays. 

• General travel rewards cards: With a general travel card, you typically aren’t tied to a specific airline or hotel. That can mean more flexibility when you’re earning and redeeming miles, especially if you’re able to transfer rewards miles to multiple travel partners.

Here are two common ways to earn miles on a travel card:

• Earning an early-spend bonus: An early-spend bonus might also be called a sign-up bonus or welcome bonus. Some credit cards offer these bonuses to new cardholders who spend a certain amount on the card within a set amount of time. With the Capital One Venture card, you can earn 75,000 bonus miles if you spend $4,000 on purchases within three months from account opening.¹ 

• Making purchases with the card: With Capital One, you earn miles by using a travel rewards card. Depending on the card, different types of purchases may have different reward rates. For example, the Venture card offers unlimited 2X miles per dollar on every purchase and 5X miles on hotels and rental cars booked through Capital One Travel.

Ways to earn miles can vary by credit card issuer. So can ways to redeem them. 

Here are many of the ways Capital One cardholders can redeem travel credit card miles: 

• Travel purchases: Use miles to cover all or part of a travel-related purchase. That generally includes purchases from airlines, hotels, rail lines, car rental agencies, limousine services, bus lines, cruise lines, taxis, travel agents and timeshares.

• Capital One Travel: Use your miles to book hotels, rental cars and flights through Capital One Travel. 

• Miles transfers: Capital One partners with more than 15 airline and hotel loyalty programs. You do need to have an account with the program before you’re able to move your rewards. 

• Cash: Turn your miles into cash in the form of a check or statement credit, which can reduce how much you owe on your next statement. 

• Gift cards: Redeem miles for gift cards from retail stores, restaurants, grocery stores and much more. 

• Capital One Entertainment: Use your miles, your card or a combination of the two to buy concert tickets and other unforgettable experiences on Capital One Entertainment. 

• Amazon.com: Pay for Amazon.com purchases with your miles by linking your eligible Capital One rewards card to your Amazon account.² 

• PayPal: Link your Capital One rewards card to your PayPal account. You can use your miles for purchases anywhere that accepts PayPal, including sites like Target®, Apple® and The Home Depot®.³

The right travel card for you will likely depend on your spending habits and lifestyle. So when you compare cards, be sure to understand the differences in earning and redemption options. You may want to take any extra benefits and perks into account as well. 

The FDIC also recommends considering factors like annual percentage rate (APR), balance transfer APR and annual fees. Understanding common credit card terms like credit scores and credit limit before opening an account can also help.

Here are commonly asked questions about how credit card miles work:

With a travel credit card, you can earn rewards then redeem them for travel-related purchases and more. Some cards may offer additional ways to earn and redeem miles. They may come with other travel-related perks, too.

You can compare Capital One travel rewards cards to find one that’s right for you. You can also check whether you’re pre-approved without hurting your credit scores.