A credit card started basically as a tool of convenience. Now, tough competition is making credit card companies offer a variety of deals as inducements. While there are introductory offers and good deals on balance transfer, the best part of using a credit card is the rewards program. There is such wonderful stuff that you can get when you use your credit card. The thrill of getting credit card rewards is great. One of the best cards in the market offering excellent rewards is the American express credit card.

There are many kinds of reward credit cards but they can be slotted into three kinds of programs. Let us examine some of these reward programs

Savings programs - In this category fall a number of cards that help you set aside money towards investment, pay your mortgage or avail major discounts on big purchases like automobiles.

- One variant of this kind of card is the Auto rewards credit cards specifically designed for those individuals who buy automobiles regularly.

Cash- back programs - This category is often a good choice for many as you can get a rebate on your spend. To make them apply for the card, this program is designed to allure customers. People benefit when they use this kind of card. Cash back ranges from 1% to 5%, depending on the issuing company. The cash back is mailed to the credit card holder or is adjusted in the balance as credit.

- One variant of this card is the gas card. You can fill gas and earn points on what you spend or get cash back with this kind of card. You can also make use of this card to make other purchases and get the benefit of cash back. The cost of gas on account of rewards and cash back actually reduces with this card. Having a gas card gives you peace of mind as you know that you can fill-up at any point when you travel in your own car.

You can avail of rewards and cash back with another variant of the dining rewards credit card. If you are the kind of person who enjoys the dining experience, this card will be useful. You can earn about 1% to 3% cash back on your spending. The major credit card companies, Visa, MasterCard and AMEX offer this kind of credit card. Many of these cards don't have an expiry date and hence you can accumulate points till you wish to do so.

If you are a frequent traveller,you will reap rich rewards with this program- Travel programs.

- The frequent flyer credit card makes it easy to travel on business or pleasure and also reward for it. You can earn points on your spend through this credit card. By using the points that you accumulated,you can also upgrade. However there is no point in holding this card if you travel infrequently.

Another variant of this program are Hotel rewards credit cards. You can use bonus points that you earn on your credit card spend towards hotel accommodation. This can be used for planning for vacations.

Before you apply for any one of these reward credit cards, you need to know some basic about these cards: These cards are meant for 'deadbeats', or those people who pay their outstanding in full, every month. The deals on reward credit cards keep changing as per usage. Last but not the least; don't get carried away by the new rewards that are offered along with the card. When you apply for a credit card, it affects your credit score. Remember, the more the number of credit cards, the more damage it caused to your credit rating