When you look at the many different credit cards that are available, you will note that in many cases the rewards cards have a higher interest rate and even annual fee than those without rewards. This is not always the case, of course, and in all cases the rate will depend on your credit score.

In addition you may discover that the rewards cards with the lower interest rates are identified as available to those with excellent or good credit. That doesn't mean you won't qualify for a rewards card if your credit score falls into the fair or lower category, but you will have to look harder to find the card that is right for you.

By keeping in mind that many rewards cards carry a higher interest rate and annual fee that cards without rewards, you can make a decision concerning the necessity for a card which pays points for usage. If you are someone who only uses your credit card occasionally, you may find a card with a lower interest rate is more beneficial. On the other hand, if you frequently use your card, the benefits attached to a rewards card may be well-worth the cost of owning it. You want to evaluate your personal situation before you apply for any new credit card so that you know where to direct your search for the perfect credit card.

If you discover your spending needs justify using a rewards card, you want to look at the different offerings. Some issuers limit the number of points you can accumulate in a year and/or have a specific period during which you must spend the points you earn. You want to choose the card that meets your lifestyle so that you can gain the most benefits from your rewards card. That means looking at what the offers are and whether you would be likely to participate in those offers. For example, don't choose a rewards card that offers points for American Airlines if you only travel on Delta.

Even credit card issuers have different rewards cards. Some pay cash bonuses of a certain percentage while others offer points toward purchases at certain retail outlets. Your personal spending habits make some rewards cards more attractive than others - an important reason for evaluating your spending habits before you apply for any credit card. It isn't worthwhile unless you can use it to its full advantage. If you are a small time user, a credit card without rewards points and a lower interest rate is a better choice.