Reward cards are offered by credit card companies as a way to lure in new customers. Credit card companies offer points and cash back rewards that can be exchanged for airline tickets, hotel stays and merchandise. These reward offering credit cards are always an appealing deal, but they might not be the best option for you if you are looking for a new credit card.

Reward credit cards are a regular credit card that has some extras that persuade you to apply for the card and use it regularly. The rewards credit card promises you ‘points' of some sort for every purchase that you make and depends on how much you charge to your card. These points can then be redeemed by you, sometimes within a set period of time for airline tickets, cash rebates, televisions or movie tickets, to name a few.

These reward credit cards are very popular among consumers-it seems like you are getting an extra deal just for using your credit card. Approximately 50 percent of the credit card offers available have a reward component of some type. Nearly 80 percent of rewards credit cards have no annual fee-an extra added feature and bonus that gets consumers to sign up. However, these reward credit cards have a tendency to have a higher annual percentage rate (APR).

A typical reward credit card's annual percentage rate is approximately 14 percent-a whopping four percent higher than a typical non-reward credit card. It's important that when you consider signing up for a rewards card that you carefully look at the charges you will incur and the APR to make sure that you aren't paying more for the card than you will receive in benefits.

Four percent more could mean you pay hundreds of dollars in interest on your reward-credit card purchases just to get an item worth $50. At the end of the day, the ‘bargain' of a reward credit card may not be much of a deal at all.

In order to choose and get the most out of a reward credit card, you have to check that it offers you the best value for your money and will be suited to the way you will use the card. If it's not the right card for you, you could end up paying too much for the privilege of having the card which is largely dependant on your monthly balance and interest rate.

A frequent flier reward credit card are airline affiliated credit cards that generally give you one mile for every dollar you charge to your credit card, plus extra miles for charging travel with the airline and companies that are associated with the credit card reward program.

Frequent flier reward credit cards tend to carry an annual fee that ranges from $50 to $150 per year and have annual percentage rates that run as high as 15 to 18 percent. These airline reward cards are very popular amongst frequent travelers and big spenders, but they might not be the right card for you.

If you fly frequently, charge a lot to your credit card and pay your balance every month, then this card is a great deal for you. However, if you spend less than $10,000 per year on your credit card, you are probably better off with a different type of reward credit card, such as a cash back card.

A frequent flier reward credit card usually ‘charges' 25,000 points for a free airline ticket to travel in the United States. The average American spends approximately $5,000 a year on their credit cards and at this rate; it would take five years to get one free ticket with your reward credit card. If you carry a balance on your credit card, this will mean interest charges on your balance which will also impact the practicality of the value of your reward credit card.

Some credit reward cards offer a higher cash rebate of approximately 5 percent. These reward cards do tend to have a higher annual percentage rate which will translate to a bad deal if you carry a balance, even when you factor in the increased cash back rebate.

How can you tell the difference for which card is better-a cash rebate card or a point reward card? All in all, the point reward cards tend to be a better deal for the average consumer. If you look at it in this light, it makes more sense:

Most cash back cards will give you $250 cash back when you've spent $25,000, while a point reward card will offer you 25,000 points when you spend $25,000 which you can redeem for an airline ticket that is worth up to $500.

In order for you to get the best results from your reward credit card, consider these 4 tips:

1-Look for cards that have a wide variety of options for rewards. This will offer you more flexibility when exchanging your points.

2-Spend your rewards points sooner rather than later. Some credit card companies change or downgrade their rewards at different period of time.

3-Only get a reward credit card if you are going to pay off the balance each month to avoid high interest payments.

4-Only have one or two reward cards at any given time. Limit your spending to one or two cards so that you can take advantage of the maximum rewards offered by those cards.