Cash back credit cards will always earn you the most relative to what you spend as far as rewards are concerned.  The standard rate for cash back reward programs is one percent, so $1 for every $100 spent.  Unlike point- or mileage-based rewards programs, with cash back rewards what you’ve earned is yours to keep and your rewards can’t be devalued in any way.  Another benefit of a cash back rewards program is that if you become unhappy with your credit card issuer and want to switch to a better credit card, you do not have to worry about losing your cash back.  You can simply request a check for your earned cash back rewards and then close your account at no risk.

It’s very hard to get the interest rate on a credit card account lowered in this economy, even if you have excellent credit and a superior track record with your credit card issuer.  Now that you’ve made two late payments, you’ve weakened your negotiating power considerably.  Your APR was also raised because – simply put – it’s a sign of the times.  Banks are doing all that they can to increase profits before the Credit CARD Act (which restricts their ability to raise rates) takes effect in February.  We would suggest a balance transfer, but any credit card application you fill out now will likely be declined given that you’ve made two late payments so recently.  The best you can do at this point is to prove your case with good behavior.  Make sure you pay your bill on time every month and pay more than the minimum amount due.  Do this for several months and then try calling your credit card issuer to negotiate your rate down.  You may see some relief.  If not, you can try transferring your balance at that time.

It depends. The only way to lose rewards is by defaulting on a credit card or closing your account before you use your earned rewards.  Rewards credit cards are almost always associated with usage on the account.  For instance, some rewards programs offer one point or one mile for every dollar spent.  If you transfer your balance to another card and have already accumulated rewards on and continue to use your original credit card account, then yes, you will still enjoy the benefits of its rewards program.  If you don’t plan on keeping your old account open any longer, then you will not get any new rewards benefits, so make sure your new account offers a rewards program that you are happy with.

Despite the fact that you earn rewards in a certain “rewards currency” (i.e. cash, points or miles) most credit cards allow you to use/redeem them for other things. For example, you can you can turn your Capital One miles into cash or redeem your United Airline miles for merchandise. In most cases, though, you lose value by redeeming your rewards outside their particular “rewards type” and we therefore advise against it.

In order to maximize your rewards potential, it’s important to pick a card that provides the most valuable rewards on your biggest expenses. For instance, if you are a frequent flyer, perhaps an airline miles credit card is right for you. But, on the other hand, if you spend more on gas than on airfare, a gas credit card might be a better choice.

These days, it seems like there are rewards-based credit cards for nearly every hobby or interest. Each rewards credit card has its own “rewards type” (or “rewards currency”). Here are some of the most common categories of rewards types:

• Frequent Flyer Miles from a particular airline (for example, United miles, Delta miles, etc.)
• Miles within the rewards program of your credit card company (for example, Capital One miles)
• Cash Back based on a percentage of your purchases
• Hotel Points in the rewards program of a particular hotel chain (for example, Hilton points)
• Generic Points within the rewards program of your credit card company (for example, American Express Membership Rewards Points)