 TITLE: How to Choose a Credit Card CONTENT: Choosing a Credit Card to Earn Rewards\n--------------------------------------\nIf you have good to excellent credit and want a card for everyday purchases, a rewards credit card could be a great option. These cards tend to have a high interest rate, and some have high annual fees. But if you pay your balance in full each month and know how to use your rewards effectively, you could get hundreds or thousands of dollars in benefits each year.\nFirst, decide which type of rewards program you want to use:\n*   **Cash back**: With a cash back credit card you'll earn cash back rewards each time you make a purchase. Cash back rewards are easy to calculate and use, which many cardholders find appealing.\n*   **Card issuer**: Some credit card issuers have rewards programs where you earn points or miles each time you make a purchase. You'll then be able to decide how to redeem your rewards, and your options may include cash back, gift cards, travel or transfers to other loyalty programs. Programs like this through card issuers can be a little trickier to navigate than cash back rewards as the value of your rewards can vary depending on the program and redemption options.\n*   **Co-branded cards**: Using a co-branded credit card, you can earn points in a company's loyalty program. There are co-branded airline, hotel and retail store cards, each with its own benefits and drawbacks. If you tend to use the same airlines or hotels, or frequently shop at the same stores, a co-branded card could be a good option.\nCredit cards also tend to offer rewards using three systems:\n*   **Flat rate**: You'll earn the same rewards on all your purchases. Flat rate rewards don't require any extra thought and could be the best option if you tend to use your card for everything and shop at a wide variety of stores.\n*   **Tiered**: With tiered rewards, your rewards rate will be different depending on where you shop. For example, you might get 2 points per dollar on dining and travel purchases and 1 point per dollar on everything else. Tiered cards can be especially rewarding if you tend to spend a lot of money within one or two categories, or as a complement to a flat rate or rotating rewards card.\n*   **Rotating**: A few cards give you bonus rewards on purchases at certain types of retailers, and the list changes every three months. With some cards, for example, you'll earn 5% (or 5 points) per dollar on purchases within the bonus category on the first $1,500 you spend during the quarter—and 1% on everything else. The 5% rate is high, but the downside is the issuer gets to pick the categories and they might not align with your usual spending, and the base (non-bonus) rewards rate is usually low. With these programs, you need to remember to activate the bonus each quarter to earn the higher rewards.\nBetween the three types of rewards programs and three types of earning structures, there's a lot to consider when choosing a rewards credit card. Fortunately, you can quickly narrow down your list of potential fits.\nFor example, if you want to earn cash back and get extra rewards when you're buying groceries, consider a tiered rewards card and search online for the best cash back credit cards for groceries. You'll quickly find lists of the top picks, with the cards' terms and pros and cons listed for you to review. END