 TITLE: What Is a Rewards Credit Card? CONTENT: Get the Most from Your Card\n---------------------------\nThe popularity of rewards cards has spawned a cottage industry in blogs and other websites dedicated to maximizing the accumulation of miles and points. For those with less time or dedication, the key to a good rewards-card experience lies in taking advantage of the bonuses while avoiding potential problems. Here are some guidelines that apply to any rewards card:\n### Don't Get in Over Your Head\nThe biggest potential risk connected with rewards cards may be the tendency to make extra purchases in order to gain extra points. Take care not to get spread too thin in your zeal for rewards.\nSwitching to a rewards card for purchases you'd normally make with a debit card, such as groceries or fuel, is fine as long as you plan to pay off those purchases in full each month. But \"big-ticket\" buys that push your rewards level to new heights could end up costing you in the long run if they lead to outstanding balances and interest charges on the purchases.\n### Coordinate an Intro Bonus with Major Purchases\nMany rewards cards offer a substantial number of points or miles (10,000, 20,000 or even 50,000) as an introductory bonus when you open your account, but only if you charge a minimum amount (such as $3,000, $5,000 or $9,000) within the first three months of signing up.\nA little planning ahead can help you make good use of these deals, without getting overextended: Apply for your rewards credit card three or four months before you plan to make a major purchase you've already saved for (booking a vacation, say, or buying furniture or appliances). Put the purchase on your new credit card, and then pay it off with your savings to help earn the intro bonus without incurring any finance charges.\n### Look for No-Fee Cards\nMany rewards cards come with annual fees. A typical sum is $95, though some are less, and others several times more. Credit card issuers often waive the fee for the first year, which makes it easy to overlook, but don't ignore it.\nAt a cash-back rate of 1%, it'll take $9,500 in purchases just to cover a $95 annual fee, so make sure you don't end up having to spend more cash than you get back. (Calculating the breakeven-point on mileage and points cards is trickier, but the same logic applies).\nIf your strategy is to pay the card off in full then cancel it before the annual fee kicks in, think again: Closing card accounts reduces your total available credit—a factor that can lower your credit scores. That doesn't mean you should never close an account, but your best bet, if possible, is to stick to no-fee cards. END