There are credit card rewards that range from cash back to hotel
credits to airline miles to zero percent APR. But sometimes the
rewards you earn with a credit card are more than offset by
annual fees and interest charges. In many cases, choosing the
card with the lowest APR and the lowest annual fee that you
qualify for will be more “rewarding” than getting airline miles
or other goodies.

If you choose a rewards credit card then take the time to read
the tiny print to know what your limitations are. For example,
with airline miles reward programs, there may be dates you’re
not allowed to buy tickets for (blackout dates), or restrictions
on what class of ticket you can redeem your miles for.

Cash back reward cards are very popular. For people who spend a
lot, yet pay off their balances in full every month, they can
bring in a tidy sum over the period of a year. But those who
carry balances are almost always better off choosing the lowest
interest rate card.

Retail reward credit cards work well if you often shop at a
participating retailer, like Walmart. The Walmart credit card
gives you a 3-cent per gallon discount on gasoline at Walmart
gas stations. Other retail reward cards earn you “points”
towards discounts or free merchandise. There are retail reward
cards for online spending too, including cards for Amazon.com
and Overstock.com. Like with the other reward cards, you should
read the details and find out if you would actually benefit from
the rewards, or if fees and interest would counteract them.

If you’re not sure whether you would be better off with a low
interest rate card or an airline miles reward card, then you can
go to www.creditcards.com where you can input your card
specifics, monthly balances, and estimated monthly payments and
find out.

Another type of “reward” program doesn’t benefit you directly
but benefits a charity close to your heart. For example, the
American Society for the Prevention of Cruelty to Animals
(ASPCA) offers a credit card that donates a certain percentage
of purchases to the ASPCA. There are also cards associated with
educational funding and with the American Heart Association,
among others. These cards sometimes make a fixed donation of,
say, $10 or $20 to the charity with which they are affiliated
when you open the account.

There are rewards credit cards for many different tastes and
needs. Used properly, they can help you put a little money back
in your own pocket, or into the pockets of those less
fortunate.

About the author:

Author:  Peter Carville

Peter Carville is a freelance article writer who writes for Financial Facts about the current financial news and the credit crunch.