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.

Delta Airlines - Gold Delta SkyMiles® Credit Card

Earn 30,000 bonus miles toward Award Travel when you spend $500 on the Card in the first three months from account opening $0 intro annual fee for the first year, then $95 Check your first bag Free - for up to 9 people on your reservation - on every Delta flight Receive double miles on Delta purchases and 1 mile for all other eligible dollars spent Priority Boarding and 20% In-Flight Savings

American Express® Premier Rewards Gold Card

Membership Rewards® bonus: 15K points, redeemable for select gift cards valued at $150, when you spend $1,000 in your first three months of card membership Membership Rewards® points multiply fast! Earn 3X points on airfare, 2X points on gas and groceries, 1X points on everything else Exclusive access to Gold Card Destinations and events- Enjoy special travel packages and amenities at hotels worldwide, as well as select concerts, shows, major sporting events Introductory annual fee of $0 for the first year, then $175 Get approved in 60-seconds.

Citi ThankYou® Preferred Rewards Card - $250 in Gift Cards

$250 in gift cards - When you redeem the 25,000 bonus ThankYou® Points received after $2,000 in purchases within 3 months of account opening Earn 1 point for every $1 you spend on all purchases Receive an anniversary bonus every year you're a cardmember No expiration and no limit on the points you can earn Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more No annual fee*

Citi ThankYou® Preferred Rewards Card - $150 in Gift Cards

$150 in gift cards - When you redeem the 15,000 bonus ThankYou® Points received after $1,000 in purchases within 3 months of account opening 5 ThankYou Points for every $1 spent on purchases at gas stations, supermarkets and drugstores for 12 months and 1 point for every $1 spent thereafter and for all other purchases* Enjoy no limit on the number of points you can earn Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more No annual fee*

Citi ThankYou® Premier Rewards Card

Earn 30,000 bonus ThankYou® Points after $2,000 in purchases within 3 months of account opening - enough for $300 in gift cards 1 ThankYou Point for every $1 you spend on purchases Earn points for the miles you fly when you purchase a ticket with your Citi ThankYou Premier Card No foreign transaction fee on purchases* Annual complimentary domestic companion ticket, within the continental USA, when booked through our travel benefits provider, Spirit Incentives No points cap and no expiration of points

Discover® More® Card - No Balance Transfer Fee*

Limited Time Offer - $0 Balance Transfer Fee!* 0% intro APR on purchases and balance transfers for 12 months, then the variable standard purchase APR of 10.99% - 19.99%* 5% Cashback Bonus® in categories that change like gas, restaurants, department stores and more. Limitations apply* Up to 20% Cashback Bonus at popular retailers when you shop online through Discover.com Discover is ranked #1 in customer loyalty--15 years in a row! (2011 Brand Keys Customer Loyalty Engagement Index report) 24/7 access to a U.S.-based Account Manager within 60 seconds Great rewards with no annual fee, no rewards redemption fee, and no additional card fee *Click apply to view rates, fees, rewards, limitations and other important information

Discover® More® Card

0% intro APR on purchases and balance transfers for 15 months, then the variable standard purchase APR of 10.99% - 20.99%* 5% Cashback Bonus® in categories that change like gas, restaurants, department stores and more. Limitations apply* Up to 20% Cashback Bonus at popular retailers when you shop online through Discover.com Discover is ranked #1 in customer loyalty--15 years in a row! (2011 Brand Keys Customer Loyalty Engagement Index report) 24/7 access to a U.S.-based Account Manager within 60 seconds $0 Fraud Liability plus automatic mobile and email fraud alert options Great rewards with no annual fee, no rewards redemption fee, and no additional card fee *Click apply to view rates, fees, rewards, limitations and other important information

Continental Airlines OnePass® Plus Card

Earn up to 40,000 bonus miles & first year free ($95 value)* Now with priority boarding privileges on Continental and United flights Check your first bag for free on Continental and United flights, up to a $50 value Visit the United Club with two complimentary passes every year, a $100 value Earn 2 miles for $1 spent on tickets purchased from Continental and United and 1 mile per $1 everywhere else Your miles don't expire and there is no limit to the number of miles you can earn

Discover® Open Road Card

Receive a $150 Restaurant.com Gift Certificate with first purchase 0% intro APR on purchases and balance transfers for 12 months, then the variable standard purchase APR of 10.99% - 20.99%* 2% automatically at any gas station and any restaurant all year long* Plus, up to 20% Cashback Bonus at popular online retailers when you shop through Discover.com Discover is ranked #1 in customer loyalty--15 years in a row! (2011 Brand Keys Customer Loyalty Engagement Index report) 24/7 access to a U.S.-based Account Manager within 60 seconds Great rewards with no annual fee, no rewards redemption fee, and no additional card fee *Click apply to view rates, fees, rewards, limitations and other important information

Miles by Discover® Card

Earn up to $120 in travel rewards--1,000 Bonus miles every month you make a purchase for the first year 1 Mile on every $1 you spend - Plus flexible redemption options like travel credits, merchandise, gift cards or cash 0% intro APR on purchases and balance transfers for 6 months, then the variable standard purchase APR of 10.99% - 16.99%* No restrictions on travel--fly on any airline, book any hotel or car, with no blackout dates Travel benefits include secondary collision damage insurance when you rent a car with your Miles by Discover card Discover is ranked #1 in customer loyalty--15 years in a row! (2011 Brand Keys Customer Loyalty Engagement Index report) Great rewards with no annual fee, no rewards redemption fee, and no additional card fee *Click apply to view rates, fees, rewards, limitations and other important information

The Platinum Card® from American Express

25,000 Membership Rewards® points when you spend $1,000 during your first three months of Card membership Global Travel benefits: Priority Pass select airport club access, No Foreign Transaction Fees, Global Entry expedited U.S. immigration pass Up to $200 in Airline Fee Credits annually to cover incidental charges on your airline of choice, including checked - baggage fee 24/7 Platinum Card® Concierge service for assistance with reservations, travel, gifts, and more Fine hotels & Resorts Program: exclusive upgrades and amenities at over 700 boutique, resort, and luxury hotels worldwide

Citi® Dividend Platinum Select® Visa® Card - $200 Cash Back

$200 cash back after $500 in purchases within the first 3 months of account opening 5% cash back on fitness club, health care, and utilities purchases from 1/1/2012 to 3/31/2012 upon enrollment. Each quarter, you can enroll to earn additional cash back in popular categories. 5% average cash back at select merchants through Citi Bonus Cash Center® Full 1% cash back on all other purchases and eligible cash advances. No annual fee*

Citi® Diamond Preferred® Card

0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 11.99%-21.99% based upon your creditworthiness.* 24/7 access to personalized concierge service providing assistance in booking hotel, flights, concert tickets and much more Special access for Citi cardmembers to purchase presale tickets, preferred seating, VIP packages, and other unforgettable live entertainment experiences through Citi Private Pass® $0 liability on unauthorized purchases and Citi® Identity Theft Solutions No annual fee*

Blue Cash Everyday^SM from American Express

Earn a $100 cash back bonus after spending $1,000 in eligible purchases in the first 3 months of Cardmembership 0% intro APR on purchases for 12 months, flexibility to pay over time Get 3% cash back at supermarkets, 2% cash back at gas stations and department stores, and 1% cash back on all other purchases No spend minimum, No enrollment, and No rotating rewards categories Get a $25 Referral Bonus for each friend or family member who is approved for the Card No annual fee, flexibility to pay over time

Chase Freedom^® Visa - $100 Bonus Cash Back

This offer is for people with a good to excellent credit history which means, among other things, that your credit history is clear of bankruptcy and seriously delinquent accounts Earn $100 Bonus Cash Back after you make $500 in purchases in your first 3 months 0% Intro APR for 12 months on balance transfers and 6 months on purchases 5% Cash Back on up to $1,500 spent at gas stations and on Amazon.com from 1/1/12 - 3/31/12. You'll enjoy new 5% categories every 3 months like grocery stores, restaurants and even airlines. It's free and easy to activate your bonus each quarter! Unlimited 1% Cash Back on all other purchases and up to an additional 10% Cash Back when you shop online at select merchants through Chase No annual fee and rewards never expire

Citi® Hilton® HHonors^TM Visa Signature® Card

Earn 40,000 Hilton HHonors Bonus Points after spending $1000 within 4 months of account opening* Earn 6 Hilton HHonors Bonus Points for each $1 spent at a participating hotel within the Hilton Worldwide portfolio* Earn 3 Hilton HHonors Bonus Points for each $1 spent on purchases at supermarkets, drugstores and gas stations* Earn 2 Hilton HHonors Bonus Points for each $1 spent on all other purchases* No annual fee.*

Starwood Preferred Guest® Credit Card

Starpoints® Bonus: 10K with your first purchase and another 15K when you spend $5k within 6 months - enough for up to 6 free nights at a category 1 or 2 hotel Free nights, free flights: Redeem Starpoints with over 350 airlines through SPG Flights and more than 1,000 hotels and resorts worldwide. No blackout dates 2011 SmarterTravel® Award for "Best Travel Rewards Card" $0 introductory annual fee for the first year, then $65

Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back

$100 cash back after $500 in purchases within the first 3 months of account opening 0% Intro APR on Balance Transfers and Purchases for 12 months. After that, the APR will be 12.99%-22.99% variable based on your creditworthiness* 5% cash back on fitness club, health care, and utilities purchases from 1/1/2012 to 3/31/2012 upon enrollment. Each quarter, you can enroll to earn additional cash back in popular categories. Full 1% cash back on all other purchases and eligible cash advances. No annual fee*

Visa® Black Card

Made with carbon, not just another piece of plastic; Membership is limited 24-hour concierge service at your disposal Unlimited VIP airport lounge visits Exclusive rewards program; 1% cash back or airfare on any airline - no blackouts or restrictions Accepted globally; zero liability protection against unauthorized purchases

Citi ThankYou® Card

Enjoy 0% Intro APR on Balance Transfers and Purchases for 15 months. After that, the variable APR will be 12.99% - 22.99% based upon your creditworthiness* Plus earn 1 ThankYou Point for every $1 you spend on purchases Earn an anniversary bonus on points earned from purchases every year* Enjoy no limit on the number of points you can earn Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more No annual fee*