How to Choose a Credit Card by Rewards

Credit card companies have many ways of distinguishing one card from the other. Not only do you get credit to use, each card also comes with specific rewards. Most companies have rewards programs that are based on points. Each purchase you make on your credit card gives you points which can be redeemed in many ways. If rewards are important to you when choosing a credit card, you'll need to compare each card's reward program.

Difficulty: Moderately Easy

Instructions

1. Decide whether you want to use a specific credit card company. The big ones to choose from are Visa, Mastercard, American Express and Discover. If you have a specific one in mind, this will narrow down which rewards programs to investigate. Benefits for each company's cards can be found on their respective websites.

2. Are you willing to pay a fee to have your credit card? American Express's Gold and Platinum cards have special rewards attached to them, like 24-hour concierge service that even buys tickets to shows for you, worldwide travel services and no spending limit. However, these cards can cost you up to $500 per year just in annual fees.

3. Decide whether you want your rewards in points or airline miles. Each credit card company has at least one card that gives you airline miles for each purchase, usually 1 mile for each dollar you spend. If you want miles, this will narrow down your choices. Points can be redeemed for any number of items: cameras, gift certificates or golf bags, to name a few.

4. Check out how fast you can earn points with different credit cards. Some cards have deals that give you double points if you shop at specific stores, like a grocery store or particular website. If there are certain stores that you shop at a lot, check the different credit cards to see whether you get extra points by shopping there. The more points you have, the better the rewards.

5. Pick the card with the best rewards to suit you, whether it be airline miles, points or an Amex card with an annual fee. Submit your application and wait to see whether you're accepted. You can usually fill out an application on the credit card company's website, or request a mail-in application.

Tips & Warnings

• You'll also want to check the starter spending limits on each card and make sure the amount of credit given works for you.