When I go into the grocery store for my typical weekly purchases, I always have to pull out my keychain as soon as I get in the checkout line. Why? Because it takes me awhile to sift through all my rewards cards in order to find the right one for the cashier. With my gas station perks, my sporting goods bonus cards and everything in between, you’d think I’d be riding high in free gifts and earned products. Not. So it makes me wonder, does anyone really get that much benefit for signing on with all the perks that business travelers and entrepreneurs are offered? Over a couple of installments, we’ll explore the world of rewards programs and how to make smart choices when participating in them. In tight economic times, savvy consumers may look to rewards programs for relief when buying essentials, but Consumer Reports' July issue finds reaping real savings can be tough, and even the more generous programs have limits on how much consumers can earn. To keep shoppers coming back and spending more, supermarkets, drugstores, warehouse clubs, gas stations, bookstore chains, and many other retailers are pushing points programs. About 85 percent of U.S. households participate in at least one rewards program. A recent poll of Consumer Reports Money Adviser subscribers found that 41 percent of the newsletter's subscribers carried three to five such cards, 9 percent had six to nine of them, and 3 percent somehow found room on their key rings or in their wallet for 10 or more. Consumer Reports finds that along with the dizzying number of programs have come increasingly complex rules, restrictions, and limits on how much consumers can earn--making many of the programs not worth the bother. "Carrying the right cards and ignoring the rest can save you a little money on your purchases, but consumers must choose programs that compliment their spending habits," said Amanda Walker, senior project editor at Consumer Reports. Some rewards cards do double duty as credit cards. Cash-back, gas, and grocery rewards credit cards can offer some relief for costly essential items, but often carry higher Annual Percentage Rates than traditional credit cards. Looking at some of the more generous credit card rewards programs, CR found that rates varied from 9.74 % to as much as 19.99 %. "If the rates are high, the cost to carry a balance will often erase any savings the rewards program may offer," Walker said. So if you find yourself feeling overwhelmed by the options you have out there when it comes to rewards programs, in Part 2 you’ll find helpful advice for picking the right ones. | 
