Johansen said, "If I make a lot of larger purchases, I generally do them on the JetBlue card so that I can redeem as many flight points as possible."
Consumer Reports sized up the "best rewards cards." but Chris Fichera says be aware, they're only worth it if you pay off their balance in full each month.
Fichera said, "These cards generally have higher interest rates. So if you carry a balance, you could end up paying more in interest than you get back in rewards."
And watch out for hidden fees! 19 percent of rewards cardholders said they had increased fees for services like balance transfers, cash advances, and foreign transactions in the past year. And scrutinize the fine print.
"Some cards have clauses that can make you lose out on points or cash back," said Fichera.
Take the Discover Card. It gives one percent cash back. But that drops down to 0.25 percent at warehouse or discount stores like Wal-Mart.
Fichera said, "The chase freedom card can be good because it offers five percent cash back in certain seasonal categories. But since those categories change every quarter, you have to opt in every time, which can be a hassle."
Retailers are offering rewards cards, too, and if you're a loyal customer, they can pay off. Consumer Reports says a good one is the amazon.com rewards visa card. It has no annual fee, pays 30 dollars back on your first purchase, and points are unlimited and never expire.
Consumer Reports says one of the best cash back reward cards is the American Express Blue Cash. It doesn't charge an annual fee, and after spending 65-hundred dollars within a year, it offers five percent cash back at supermarkets, drugstores, and gas stations, and one-and-a-quarter percent elsewhere.
