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I use credit cards for most transactions and pay my balance in full each month. For the convenience of not needing cash and the trouble of reading through a lot of fine print, I earn cash, free oil changes and gift cards to restaurants and clothing stores. When I get a chance, I share the good word with others.

While credit card reward programs are far from perfect, they can stretch your dollar and help insert some fun money into a tight budget in these times of ever-higher food and fuel prices. About 85 percent of households carry one or more rewards cards, according to Consumer Reports.

But they're only worthwhile if - and it's a big if - you don't carry a balance. If you typically do, focus on finding the lowest interest rate and then paying down that balance.

A recent study by Consumer Reports determined that few programs are worth the effort, blaming "increasingly complex rules, restrictions and limits on how much consumers can earn."

If you are in the market for a card that yields rewards, the publication suggests finding a flexible cash-back card that reflects your shopping habits.

So if you're in the market for a rewards card, here's a list of the best out there. (Of course, "best" is a relative term, so evaluate a card based on your needs.)

AmEx Blue Cash: 5 percent cash back at supermarkets, gas stations and drugstores; 1.5 percent elsewhere. You have to spend $6,500 a year to receive the top-tier rewards,

Chase Freedom: 3 percent for every dollar you spend in three categories where you spend the most; 1 percent everywhere else. You can earn only 3percent on $600 in purchases monthly, so be sure Chase's categories mirror your spending habits.

Discover More: 5 percent cash back in rotating spending categories up to $400 per quarter; 0.25 to 1 percent on all else.

If you're loyal to a certain gas station, many companies offer 5 percent cash back on fuel at their stores. Otherwise, consider the following:

Discover Open Road: 5 percent cash back on gas and auto maintenance purchases; as much as 1 percent on other transactions.

Chase PerfectCard MasterCard: 6percent cash back on gas for 90 days; 3percent on gas after 90 days; 1 percent cash on other purchases.

Costco TruEarnings: No annual fee for Costco members. You'll earn 3 percent back on gas and restaurants, 2 percent on travel and 1 percent for everywhere else. Rewards are redeemed annually at Costco or for cash.

Source : http://www.presstelegram.com