The best way to use a rewards credit card

There's plenty of rewards credit cards out there to choose from.  There's cash back rewards credit cards, hotel rewards credit cards, airline miles rewards credit cards, and rewards rewards credit cards, if you get what I mean.

All these rewards are great, but are they really worth it is the true question?  The answer is absolutely, yes.  But this comes with responsibility, and discipline.  If you apply for a rewards credit card and use it responsibly, to pay for your gas purchases, online purchases, airline tickets, dining and entertainment, and everything else, then you are definitely racking up miles, points, or cash back on your credit card.  Sounds great, but the key is, you need to pay off the balance every month.  If you don't pay the balance at the end of each month, you accrue interest charges, or finance charges.  If these finance charges total more than the rewards you earn then a rewards credit card has benefited you in no way.

So if you are in the market or a rewards credit card, apply for the type of credit cards that interests you most.  If you fly a lot, an Airlines Miles credit card like the Discover Miles card, or the American Express Blue Sky card, may be the right rewards credit card for you.  If you travel a lot, a hotel rewards credit card like the Hilton Hhonors credit card or the Starwood preferred credit card may be the right choice. Or you might just want cash back, in that case the Citi Cashreturns credit card is an excellent choice, the Chase Freedom Card, or the American Express Blue Cash credit card is another great card.

Just remember, if you apply for a rewards credit card, use it to pay for everything you can including your bills, your gas, groceries and more.  But most importantly don't overextend your credit, and make sure that you can pay for your full balance at the end of each month.  Then your rewards credit card will reward you the way it's supposed to.

You can compare rewards credit cards online at http://www.cardrewards.net/