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.

Citi® Diamond Preferred® Rewards Card

0% APR for up to 12 months on balance transfers* 0% APR for 7 months on purchases* 5 ThankYou® Points for every $1 spent on purchases at supermarkets, drugstores and gas stations for 12 months, 1 ThankYou Point thereafter* 1 ThankYou Point for every $1 spent on all other purchases* Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more No annual fee

Citi® Platinum Select® MasterCard®

0% APR on balance transfers and purchases for up to 15 months* No annual fee Citi® Identity Theft Solutions $0 Liability on unauthorized purchases Secure, free online account management Extra Cash from Citi: enjoy significant discounts on gift cards, travel, merchandise and more

Discover® More Card - $50 Cashback Bonus®

0% APR on Balance Transfers for a full 12 months 0% APR on Purchases for a full 6 months Get $50 Cashback Bonus after your first $599 in purchases Up to 1% unlimited Cashback Bonus on all other purchases automatically No Annual Fee

Discover® More® Card – Black Monogram

0% APR on Balance Transfers for a full 12 months 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants and more Up to 1% unlimited Cashback Bonus on all other purchases automatically No Annual Fee

Discover® More Card – Shamrock

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

Miles by Discover® Card

12,000 Bonus Miles - 1,000 Bonus Miles each month you make a purchase for your first year Double Miles on travel and restaurant purchases. One Mile for every dollar on all other purchases Flexible redemption options for travel, gift cards, or cash Double Miles through our exclusive online shopping site

American Express® Premier Rewards Gold Card

Earn 15,000 Membership Rewards® bonus points when you spend $1,000 in your first 3 months of Card membership 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 Earn 15,000 Membership Rewards bonus points when you spend $30,000 per calendar year.

Biodegradable Discover® More Card

0% APR on Balance Transfers and Purchases for a full 6 months 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants and more Up to 1% unlimited Cashback Bonus on all other purchases automatically No Annual Fee

Discover® More® Card

0% APR on Balance Transfers for a FULL 12 months 0% APR on Purchases for a FULL 6 months 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants and more Up to 1% unlimited Cashback Bonus on all other purchases automatically No Annual Fee

Chase Sapphire Preferred Card

Earn $150 in rewards - that's 15,000 bonus points after you spend $1,000 in the first 3 months! 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 airfare 7% annual points dividend - earn points on your points 1:1 points transfer to leading airline and hotel programs 2X points earned on all airfare booked through Ultimate Rewards & 1 point for every dollar spent on all other purchases 24/7 Dedicated service advisors (No voice recording) All of this for an $85 annual fee - waived the first year!

Escape by Discover® Card

25,000 Bonus Miles - 1,000 Bonus Miles each month you make a purchase for your first 25 months Unlimited Double Miles on all purchases An additional 2 Miles for every $1 you spend through our exclusive online shopping site, ShopDiscover Flexible redemption options for travel, gift cards, or cash Enhanced travel benefits

American Express® Preferred Rewards Gold Card

Earn 10,000 Membership Rewards® bonus points when you spend $500 in 3 months - redeemable for a $100 gift card! The Membership Rewards® program - Earn 1 Membership Rewards® point for virtually every dollar you spend and redeem for your choice of travel, shopping, and entertainment Express Approval. Get a decision in less than 60 seconds.

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.

Delta Airlines - Gold Delta SkyMiles® Credit Card

No annual fee for the first year, then $95 thereafter. Earn up to 25,000 bonus miles - enough for a total of $250 off Delta flights! Express Approval. Get a decision in less than 60 seconds.

FREE SPIRIT^TM Onyx World MasterCard®

Get 15,000 bonus miles after your first purchase - which is enough for 3 FREE roundtrip off-peak award tickets Get up to 10,000 additional miles for balance transfers made in the first 60 days after account opening Annual fee waived for the first year Get complimentary $9 Fare Club membership (a $39.95 value!) Priority boarding and domestic priority check-in Earn 3 miles for every $1 spent on Spirit and 1 mile for every $1 spent anywhere else Your miles never expire and more

Zync^SM from American Express

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

American DreamCard^TM MasterCard®

Over $1.2 million awarded to date Large monthly cash jackpots Earn entries from everyday shopping for the monthly drawing Get 1,000 entries just for applying

Visa® Black Card

24-Hour Concierge Service: Enjoy the personalized assistance of a 24-hour Concierge Service catering to entertainment, travel, business, shopping and lifestyle needs Exclusive Rewards Program: Receive 1% cash back on all purchases with Black Card's Exclusive Rewards Program Travel Redemption: Redeem points at a higher rate for flights on any airline at any time. No blackout dates or advance purchase requirements Luxury Gifts - Cardmembers receive luxury gifts from some of the world's top brands Travel Lounge Priority Pass: Complimentary membership which provides access to over 600 lounges in more than 100 countries Limited Membership: Membership is limited to ensure the highest caliber of personal service is provided to each Cardmember BC Benefits: Members are eligible for benefits including Worldwide Travel Insurance, Baggage Delay Insurance, Trip Interruption Insurance, Warranty Manager Service, & Purchase Security