Here's How to Get Your Credit Card to Pay You

Competition in the credit card industry has never been higher, and that's a good thing for consumers like you and I. There are some excellent rewards credit cards that offer cash back on purchases, the ability to earn free or discounted travel, and more. Some also offer other valuable perks, or 0% intro APR promotions to new card members.

Different types of credit card rewards

There are several different types of credit card rewards, and some excellent credit card products that offer rewards in each category. Most credit card rewards can be classified as either cash back or miles, although some (like most American Express cards) earn reward "points" that can be exchanged for a variety of travel or cash back rewards.

Cash back credit cards

Many credit card users simply want to get cash for making purchases, and there are some excellent cash back credit cards to choose from.

These come in two basic varieties -- cash back credit cards that offer a flat cash back rate on all purchases, and cards that offer a flat rate plus a higher percentage of cash back in certain categories.

As an example of the former, the Citi Double Cash® Card (see rates and fees) offers a total of 2% cash back on all purchases, and also happens to be an excellent balance transfer credit card with an 0% intro APR for 18 months on all balance transfers. After that intro period, the go-to rate of 19.24% - 29.24% (Variable) applies.

On the other hand, the Discover it® Cash Back (see rates and fees)card offers a lower 1% flat cash back percentage, but offers 5% cash back on up to $1,500 in purchases on categories you activate that change quarterly. It also offers a 15 months of 0% intro APR on balance transfers as well as purchases, making it a smart choice for consumers who may need to finance a larger purchase. The go-to 17.24% - 28.24% Variable APR applies after the intro period is over.

Apply now for the Citi Double Cash® Card.

Of course, these are just two examples, and you might want to check out our list of the top cash back credit cards to find the best fit for you.

Travel or miles-based credit cards

Some cards -- particularly those issued in partnership with an airline -- offer rewards in miles instead of cash. These can be extremely attractive for frequent travelers, as it can be possible to stretch the value of airline miles if you have flexible travel availability.

The Delta SkyMiles® Gold American Express Card is a good option, especially for people who fly Delta often. It earns one mile per dollar on most purchases, and two miles per dollar on Delta purchases, as well as in restaurants and supermarkets. Cardholders get a free checked bag for themselves and up to eight other people on their reservation, and this perk can justify the card's $0 introductory annual fee for the first year, then $150. annual fee by itself (see rates and fees). Terms apply.

Apply now for the Delta SkyMiles® Gold American Express Card.

Many credit cards have other valuable perks as well

It's also worth mentioning that some credit cards have valuable benefits in addition to their rewards, effectively adding another way that they "pay you" to carry them. For example, my go-to credit card is the The Platinum Card® from American Express, and although its reward rate of one Membership Rewards point for most purchases is arguably not as great as some other cards, it also gives me $200 in free Uber rides each year, airport lounge access, $300 credit towards airline incidentals, and other perks that more than justify the annual fee I pay (see rates and fees). Terms apply.

Apply now for the The Platinum Card® from American Express.

If you're going to play the credit card rewards game, do it the right way

As a final thought, it's important to emphasize that maximizing your credit card rewards is only worthwhile if you pay your balance in full every month (or have an active 0% intro APR).

Think of it this way -- even the best cash back credit cards issue rewards at a 2% rate on all purchases, or 5% in select categories. Airline miles can often be stretched to 2%-5% of the purchase value as well. On the other hand, the average credit card APR in the United States is currently about 24%. It's tough to justify paying interest at a rate like this just to get 2% back in rewards.