Do reward program credit cards live up to their claims?

By: Michelle Carolla | SCNow
Published: June 05, 2008

Money is tight for most Americans right now. Even the richest are feeling the effects of this strained economy. So the need to be a smart consumer is stronger than ever.
We all know about credit card reward programs, but how much are they really worth?
Consumer Reports released a study that shows you need to choose the right card for how you plan to use it.
The report stated stores are also doing what they can to keep shoppers coming back with store reward cards. They are simple to use and most give you coupons to use on your next visit. The savings can add up if you frequent the same stores.
However, if you plan on using credit cards with reward programs, Consumer Reports suggested these tips.
--Use cards from where you shop most
--Estimate how much you will plan to spend and convert that number into points or cash and see if it's positive, once you subtract card fees.
--If you aren't diligent with redeeming points, choose the cash back option.
--If you carry a balance on your cards, it's best to not use credit programs. They normally carry a higher interest rate which eats your savings.
--Also check to see if you are better off writing charities a check versus the few cents they get from reward programs.
Also, one big warning: If you have airline miles, you should use them right away. Do not count on their availability.
Just investigate before you commit to any program.

Consumer Reports Article:
http://www.consumerreports.org/cro/money/credit-loan/rewards-cards/overview/rewards-cards-ov.htm?resultPageIndex=1&resultIndex=1&searchTerm=Credit+Card+Reward+Programs