In the first part of this series, we discussed the world of rewards programs and whether they are truly worth it. In the July issue of Consumer Reports, you’ll be able to find out more about this topic. It’s an important one, as business owners, business travelers and entrepreneurs are bombarded with offers, trying to get more business and the dollars that come along with it. For consumers looking to reap the most rewards and avoid the traps, Consumer Reports offers the following advice: Consider where you shop. Save your key ring or wallet space for cards that will earn rewards at stores you use most often. Project your spending. Translate the amount you're likely to spend into cash back or points, depending on the program. If it's points, find out how many you need to get something you might want. If you're using a credit card, subtract the annual fee, if any. If that calculation shows you'd have to spend a fortune to earn a pittance in rewards, you might want to use another card. Favor cash back. You might never redeem your points, so at least you will get something. Plus cash-back cards tend to be more generous in their rewards, CR's research has found. Skip credit if you carry a balance. Rewards credit cards often charge relatively high interest rates, which will eat up your reward (and then some) if you carry a revolving balance. The issuer can also hold points hostage or stop adding to them if your payment is late. Do the math on do-good programs. Cards that give your reward to a charity usually pay only about 25 to 50 cents for every $100 you spend. And you can't write off the donation on your taxes. Both you and the charity might do better if you use a more generous rewards card, keep the money, and just write the charity a check. Use airline miles fast. Cashing in frequent-flyer rewards has become more difficult because airlines have cut flights and now have fewer seats available. So rack them up and use them up as quickly as possible. Airlines also change their rules frequently, and several big carriers have recently gone bankrupt. Avoid temptation. Research has shown that people who use rewards cards charge more. It's easy to overspend just to earn a new digital camera or set of golf clubs. Beware. For more information or to see a complete breakdown of some of the more generous credit card rewards programs, consult the July issue of Consumer Reports. The report is also available to subscribers at http://www.ConsumerReports.org. | 
