Special Report: Credit Card Rewards

Stephanie Eisenberg, Credit Card Consumer
"Both of us, my husband and I, flew to Europe for free last year, round trip on continental, which is great, and actually we are planning on doing the same thing this year. It's a winner."

Stephanie Eisenberg is a devoted credit card user. For each dollar she spends, she gets something back: airline miles. Almost a quarter of all credit cards offer some kind of reward such as cash rebates, points toward merchandise or airline mileage. But if you're not careful, you might end up paying more than the reward is worth.

Interest rates on reward cards average 12 ½ percent; that’s half a percentage point higher than the average on most other cards.

Greg McBride, Bankrate.com
"If you pay the balance in full every month, you are a great candidate for a rewards card because you can truly get something for nothing. However if you carry a balance these are not the best deal for you."

Cash back rewards are the most popular, particularly as consumers grow wary of what will happen to their frequent flyer rewards points if their favorite airline goes bankrupt.

Many cards carry annual fees. Some have award caps, like you can only get $300 back in a year, but that's still cash in your pocket, as long as you pay the balance off every month.

It's a strategy that's helped Stephanie Eisenberg take charge of her finances.

Stephanie Eisenberg, Credit Card Consumer
"That kind of keeps the rest of your spending in check."