Rewards credit card guide

Today, many credit cards feature some sort of rewards program. Most rewards credit cards use a point system for keeping track of accrued benefits, at a rate of 1-2 points per dollar charged. Other programs take a percentage of the entire dollar amount that the card user spends, and allocates that amount into a reward program bank of sorts. Whether points or cash, most rewards can only be redeemed for discounts, services, or at participating stores--not actual cash. And most rewards benefits expire if not used within a certain timeframe, usually after a year.

Credit cards with rewards programs are only beneficial when the cardholder pays the balance each month. The most generous reward credit cards returns roughly 5% of what the cardholder spends. But if the APR of the credit card is 14%, and if the cardholder rotates a balance for longer than a month, it quickly negates any benefits or gains. To make things more dangerous, rewards credit cards tend to have higher APRs. If not used properly, rewards credit cards could be harmful to one's finances and credit score.

A rewards credit card is right for you if: pay your monthly balance in full, use a particular service often, or are loyal to the retailers who participate in the card's rewards program. Otherwise, a cash back or low interest credit card may be more your style.

BankAmericard Cash Rewards™ Visa Signature® Card - $50 Statement Credit

Get a $50 statement credit after spending $100 in retail purchases within the first 60 days of the account opening date Earn 3% cash back on gas, grocery, and drug store purchases for the first 6 months and 1% on all other purchases Redeem rewards for a check, statement credit, direct deposit or pay toward your eligible Bank of America® mortgage Get a 25% bonus for all cash reward redemptions of $300 or more Get redemptions starting at $25, with the capability to set up automatic redemption No limits to amount of cash back you can earn each year

Miles by Discover® Card

12, 000 Bonus Miles – Earn 1,000 Miles each month you make a purchase for your 1st year 1 Mile per $1 on every purchase Plus, 2 Miles on travel and restaurant purchases on your first $3,000 each year No limit on the Miles you earn and Miles don't expire* Fly on any airline, book any hotel or car, with no blackout dates Use Miles for travel, merchandise, gift cards or cash 0% intro APR on purchases and balance transfers for 6 months then the regular APR No Annual Fee, No Overlimit Fee, No Redemption Fee

Discover® More Card - $75 Cashback Bonus®

0% intro APR on Balance Transfers for 12 full months, then the Regular APR 0% intro APR on Purchases for 6 full months, then the Regular APR Earn $75 Cashback Bonus when you make $500 in purchases in your first three months 5% Cashback Bonus in categories that change like travel, gas, groceries, restaurants, home improvement stores and more Up to 1% unlimited Cashback Bonus on all other purchases No Annual Fee

Discover® More Card – Black

0% intro APR on Balance Transfers for 12 full months, then the Regular APR 0% intro APR on Purchases for 9 full months, then the Regular APR 5% Cashback Bonus in categories that change like travel, gas, groceries, restaurants, home improvement stores and more Up to 1% unlimited Cashback Bonus on all other purchases No Annual Fee

Chase Sapphire Preferred Card

Earn a free flight- that's 25,000 bonus points after you spend $3,000 in the first 3 months 2X points earned on all airfare booked through Ultimate Rewards & 1 point for every dollar spent on all other purchases Fly on leading airlines anytime. There are no travel restrictions or blackout dates and points never expire Points are worth 25% more when you redeem for travel through Ultimate Rewards 7% annual points dividend - earn bonus points on your points 1:1 points transfer to leading airline and hotel programs 24/7 Dedicated expert service advisors (No voice recording) No Annual Fee for your first year - An $85 value

Chase Freedom^SM Visa - $100 Bonus Cash Back

Earn $100 Bonus Cash Back after you make $799 in purchases in your first three months 5% cash back in quarterly bonus categories like gas, home improvement and department stores, subject to quarterly maximum. Signing up is free and easy Unlimited 1% Cash Back on all other purchases with no spending tiers Up to an additional 20% cash back when you shop online at select merchants through Chase

Starwood Preferred Guest® Credit Card

Earn up to 25,000 Starpoints® — enough for up to 6 free nights at a category 1 or 2 hotel. No annual fee for the first year and $45 thereafter Express Approval. Get a decision in less than 60 seconds.

Chase Freedom^SM Visa - $50 Bonus Cash Back

Earn $50 Bonus Cash Back after first purchase 0% Intro APR and No Annual Fee 5% cash back in quarterly bonus categories like gas, home improvement and department stores, subject to quarterly maximum. Signing up is free and easy Unlimited 1% Cash Back on all other purchases with no spending tiers Up to an additional 20% cash back when you shop online at select merchants through Chase

LSU Tigers^TM Platinum MasterCard® from Capital One®

2 points per $1 on purchases at gas stations and major grocery stores 1 point per $1 spent on all other purchases No limit on the points you can earn and points don't expire Redeem for travel, gift cards and merchandise Choose from 2 unique LSU® card designs or create your own image card 0% intro APR on purchases until August 2011 No annual fee

Discover® More® Card

0% intro APR on Balance Transfers for 15 full months, then the Regular APR 0% intro APR on Purchases for 6 full months, then the Regular APR 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants, home improvement stores and more Up to 1% unlimited Cashback Bonus on all other purchases No Annual Fee

Delta Airlines - Gold Delta SkyMiles® Credit Card

No annual fee for the first year, then $95 thereafter. Earn up to 25,000 bonus miles - good for a free flight. Check your first bag for free on every Delta flight.

American Express® Premier Rewards Gold Card

3-2-1 Points: Earn Membership Rewards® points up to three times as fast: You can earn 3X points on airfare, 2X points on gas and groceries, and 1X points on everything else No annual fee for your first year, a savings of $175 Earn 15,000 Membership Rewards bonus points when you spend $1,000 in your first 3 months of Card membership

Zync from American Express^SM

Earn 10,000 Membership Rewards® points after first purchase Choose the Lifestyle Packs you want to customize your Card with the benefits you use most Earn Membership Rewards® points with every eligible purchase - redeem points for travel, shopping, and great entertainment rewards Pay no interest - that's because you pay in full each month

Escape by Discover® Card

25, 000 Bonus Miles – Earn 1,000 Miles each month you make a purchase for the first 25 months 2 Miles per $1 on all purchases No limit on the Miles you earn and Miles don't expire* Fly on any airline, book any hotel or car, with no blackout dates Use Miles for travel, merchandise, gift cards or cash 0% intro APR on purchases and balance transfers for 6 months, then the Regular APR Industry Leading Customer Service Enhanced travel benefits like Travel Delay Insurance and Trip Cancellation Insurance

American Express® Gold Card

Earn 10,000 Membership Rewards ® bonus points when you spend $500 in your first 3 months of Card membership- redeemable for select gift cards valued at $100! Turn your everyday purchases into Membership Rewards points, and then redeem them for an amazing collection of travel, shopping, dining and entertainment rewards. Express Approval. Get a decision in less than 60 seconds.