   Credit-card companies are offering rewards for your loyalty. You can get 1 percent, 3 percent, and in some cases a 5 percent reward for certain kinds of purchases.
Cards that offer more rewards points have higher interest rates and may have annual fees. But using them means you can get closer to earning your airplane ticket or TV. That’s the upside. If you don’t pay the entire bill each month, however, you’ll be charged interest at 15 percent or more. If you pay late, you will be charged a $35 late fee, and your interest rate could skyrocket. That’s the downside.
Those who are sure they can pay in full each month and who are willing to study various card offers can still do very well. By knowing which types of retail outlets are partnered with a certain credit card, they can buy for less or get maximum points.
One card user has notes on each of four cards which say things like gas, groceries, and home improvement.
Some cards have limits. The Discover Gas Card pays 5 percent cash back on gas and car maintenance, but only on purchases worth $1,200 a year. If you buy something else with the card, they pay 1 percent but the purchase still counts against the $1,200 limit.
The Citi Driver’s Edge card rebates 6 percent of any purchases you make. The rebate is good toward a new car, but only on purchases made within the last 12 months.
Many kinds of cards are available, but customers need to read and understand the terms of card agreements.
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