The most common type of credit cards on the market today are without question credit cards with rewards. They come in all types and varieties including cash back, gas, airline miles, hotel, etc., etc. The most popular of all are the cash rebate credit cards. Getting a 1% to 5% rebate on the merchandise we use on a daily basis can add up to substantial savings.

Coming off this world recession has taught us all, or at least it should have, not only the lesson of using credit wisely but also the value of a dollar and how to stretch it as much as possible. Rewards cards are great when it comes to adding value. After all, doesn’t it make sense to get something back from the money we spend?

There is however, a very important caveat when it comes to credit cards with rewards – it is absolutely vital that before you even apply for one of these offers that you fully understand exactly what the terms and conditions entail. I am speaking specifically of interest rates, fees and the terms of the rewards program itself.

The key to truly cashing in on rewards cards is to pay off your balance in full every month in order to avoid interest charges. That’s how you get ahead. It can be all well and good to get 5% off every time you fill up your gas tank but those savings will be quickly wiped out on the other end if you are paying interest because you carry a balance.

It’s kind of a no-brainer but some people just don’t put two and two together when they apply for an offer. Oftentimes the banks and financial institutions run their slick advertisement campaigns to make their offers sound incredibly attractive. What they don’t want you to know is everything that is included in the fine print… So read it carefully.

The way credit cards with rewards work when it comes to goods and services is that the issuers work out deals with other companies. An example of that would be an airline rewards card offered through a partnership between American Express and Delta Airlines. Another example would be 5% savings when you fill up at a BP station using your Chase card.

Again, and I cannot stress this enough, credit cards with rewards can be a fantastic deal but only when they are used wisely. Carefully read the terms and conditions of any offers that interest you. You must also take note of the features and benefits of the rewards programs themselves.

In closing I am going to part with a cautionary warning about rewards cards. Recently it was announced that several major credit card issuers will be taking rewards points away from cardholders that are late making payments. Note that I did not say they are in default but rather are simply late making a payment.

The lesson here is that it is imperative that you fully understand what all the details of the program are before you sign on the dotted line. Whenever someone is surprised by their credit card company you can bet that the surprise is not pleasant. To the contrary, they are usually quite expensive.

To compare the leading credit cards with rewards and to complete a credit card application online we encourage you to visit BestCreditQuote.com.