Best Credit Card Perks, And Where They Are

You're driving less, you've cut your grocery bill -- doing everything you can think of to save money.

Well, it may be time to turn your attention to that rewards credit card in your wallet!

Why not earn a gift for that money you do spend? Eighty-five percent of American households have at least one credit card offering rewards, according to Consumer Reports, but do you have the best card for you?

Early Show financial contributor Vera Gibbons provided some guidance Saturday:

This is a great time to re-evaluate whether your rewards card is really doing all it can for you.

First off, be aware that, just because it's possible to earn rewards with a credit card doesn't mean everyone should have a rewards card. These cards typically have higher interest rates than other cards, and are more likely to have an annual fee. That means, if you regularly carry a balance from month-to-month, you probably want to look for a card with a lower rate -- any rewards you earn will be cancelled out by paying the higher interest rate each month.

Also know that most of the cards have fairly complicated rules and restrictions. The cards can still be beneficial, but you really need to learn how they work and stay on top of changing rules.

There are all types of perks you can earn with a credit card: airline miles, gift certificates, money toward hotel stays, and more. But the most popular type of rewards card, and the type Gibbons recommends most, is a cash-back card.

They offer to give you anywhere from one-to-five percent back on purchases made with them.

Why does Gibbons put cash-back cards at the top of her list? Because cash is endlessly versatile, and there's no chance it's going to expire like airline miles might, for instance. And, Consumer Reports research found that cash-back cards tend "to be more generous in their rewards."

Not surprisingly, there are a lot of cash-back reward cards out there. So, how do you choose one that's right for you? For starters, you have to pick between a flat-rate card, which typically gives you a one percent return on everything you buy, or a tiered-reward system in which the more you spend, the more you earn. In general, if you're not a big spender, the flat-rate cards are probably your best bet.

Gibbons has two specific recommendations:

FOR SMALLER SPENDERS: CHASE FREEDOM VISA SIGNATURE
You get three percent back in the category you spend the most in -- from the typical categories such as gas, groceries, and department stores, to the unusual, such as beauty salons, spas, gym memberships, and pet supply stores. You receive one percent back on all other purchases, and a $50 bonus after making your first purchase.

FOR BIGGER SPENDERS: AMEX BLUECASH
This has been a top choice for years. You get one percent back on everyday purchases such as gas, groceries and drugstores, and half-a-percent back on everything else. But, once you've spent $6,500, you get five percent on those everyday purchases and one-point-five percent on everything else. Plus, there's no cap on your rewards, no matter how much you spend, unlike many reward cards.

As you can see from these two examples, you need to take a careful look at the types of purchases that actually earn rewards. Think about where you shop the most, and find the card that will result in the biggest rewards for you.

Another thing to know about cash-back cards: Some don't automatically give you your reward; you have to request it. Don't forget to do that if it's necessary!!!

Although Gibbons prefers the cash-back reward cards, other types are popular, too.

Credit cards that reward you with cash-back on gas have been gaining in popularity over the past couple of years. In most cases you wind up saving only pennies at the pump, but at least you're saving something, and if you drive a lot each week, the savings could certainly add up. The average savings amount to $3 a fill-up, and more than $150 a year for people who use a tank of gas a week, according to FuelBudget.com.

Gibbons suggests that you find a card that's not tied to one specific gas station/brand.

Her top choice:

CHASE PERFECTCARD MASTERCARD
You earn six percent cash back on gas for the first 90 days you have the card, and three percent thereafter. You earn one percent cash back on other purchases (something that the station-specific cards don't offer).

Credit cards that award you airline miles for purchases are also popular. But, as airlines continue to change their miles programs, these rewards risk becoming less valuable. Plus, there are often fees associated with using miles, making your reward worth less, and many of the cards that are linked to specific airlines carry hefty fees, according to Bankrate.com. Finally, you have to spend quite a bit to collect a reward. In general, you'll need to spend around $28,000 to earn a ticket that's worth $350 or less.

But, if you travel a lot and do make use of your miles, then this type of reward card may be right up your alley. Gibbons recommends a card that will allow you to use miles on any carrier, as opposed to a card that's tied to one specific airline.

For instance:
CAPITAL ONE NO-HASSLE MILES REWARDS
This card lets you earn miles on any airline, and carries no annual fee. You collect 1.25 miles for every dollar spent, about 25 percent more than most airline reward cards. Also, there are no blackout dates or seat restrictions when using your miles, and no limit on how many miles you can earn.