Best rewards credit card

Discovering the best rewards credit card is more important than ever, now that we face volatile gas prices, a "credit crunch", and a period of belt tightening and recession.

It seems everyone promises you the best rewards card, but so often the cash back, free airmiles, or half-price plasma tv just never materializes.

Our research shows many so-called best rewards credit card but ONLY ONE that is BEST FOR YOU!

You see, the answer (to steal from Shakespeare) lies not in our cards but in ourselves. The best rewards credit card differs for each individual, based on personal spending habits, budget and personal circumstances.

Let me explain . . .

We all differ in how we use our credit cards and how we spend our money. Someone who carries a balance on their cards will save more by focusing on debt repayment and raising their FICO score, but someone who pays their card in full each month has more flexibility.

Different cards reward different types of spending. The fastest way to rack up points is to use a card for your regular purchases you would have to make anyway. Someone who travels a lot for business can use their business travel expenses to get free airmiles for their vacation. However, for most of us, it makes sense to use a card where we get points on everyday purchases and can use these points for stuff everyone needs like cash back or gas rebates.

Make sure you get rewards that are valuable to YOU. There is no point in airmiles rewards if you never travel, or gas rewards if you don't drive a car. See what the experts advise about the TRUE Price of Rewards.

Three Golden Rules:

1. To really be a reward, you need to get something for nothing. You can only do this if you are getting reward points for buying something you would buy anyway, like gas or groceries. You will never come out ahead if you chase points by buying stuff you don't need, just in order to reach your points limit.

2. Cash is king. If you can get straight cash back in exchange for everyday purchases you cannot go wrong, regardless of your circumstances. If you want the best rewards card, you should really go for the best cash back credit card. 3. NEVER make credit decisions based on rewards alone. If you carry a balance your rewards will never make up for what you pay in interest charges and other fees. Your number one focus should always be on raising your FICO score and getting the lowest possible interest rate. A low APR is ALWAYS the best reward.

This free tool calculates the best rewards credit card based on individual spending: Click for free Rewards Wizard.

Best cash back credit card

According to Consumer Reports.org, the best cash back credit card is either:

1. Blue Cash from American Express

2. Capital One No Hassle Cash Rewards

3. Chase Freedon Visa

4. Discover More.

NOT the best rewards credit card!

The problem with cards like a Chase's Starbucks Duetto Visa, or Chase's Borders-Waldenbooks Visa is that they encourage you to spend money on unnecessary consumables like lattes and paperbacks, and only reward you with more of the same.

Compare this with using a "smart rewards" card where you win points on every dollar spent on necessities like gas and groceries you would buy anyway, and then get 5% discount off these same necessities, and it really is a no-brainer.

The best rewards card depends on YOU!

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