How to Find a Best Rewards Credit Card

Many credit card companies offer rewards credit cards in order to make their credit card more attractive and to get you to apply and use their credit card. The thing with rewards is they only apply if you use the credit card. This is good and bad--yes, you are getting something back for your purchase, but you are also creating debt.

Instructions

1. Pick the best rewards credit card for you. For example, Capital One's No Hassle Cash Reward card is one of the best since it offers a 25 percent annual bonus, 1 percent cash back on all your purchases, a 0 percent interest rate for approximately 6 months and no annual fee. However, as attractive as it sounds, it can be dangerous to your credit health if you carry too big of a balance. Don't charge more than you can pay off before the 0 percent interest rate expires.

2. Select a rewards credit card where you can earn points that help you when you travel--this is good if you are a frequent traveler. Sometimes these cards are limited to certain times so you want to check the card and see if you can use the rewards at any time or if they have blackout times. Capital One's No Hassle Miles Rewards as well as Chase's Travel Plus Visa Card have no blackout dates. They also have a 0 percent interest rate for a certain amount of time--Chase has a longer time for the 0 percent interest rate than Capital One.

3. Check the rewards credit card that will give you the most for the money you spend. For example Citi's Dividend Platinum Select Master Card offers 5 percent cash back on purchases that you make at drug stores, gas stations, convenience stores, supermarkets and utilities for 6 months and then you get 2 percent--utilities include cable TV. You also get 1 percent on all your other purchases, there isn't any annual fee and there is a 0 percent interest rate on balance transfers for 1 year.

Tips & Warnings

• Whenever you get a credit card, try to pay the balance either when it is due or before the interest rate kicks in.