4 rewards cards to consider

The latest issue of ShopSmart from Consumers Union singles out four rewards cards as good deals after analyzing their rates, terms and the richness of their rewards. And the winners are:

American Express Costco TrueEarnings

• APR: 0% for 6 months, then 15.24%
• What you get: 3% cash back at gas stations and restaurants (drops to 1% at gas stations after $3,000 is spent), 2% on travel, 1% elsewhere.
• No annual fee with Costco membership.

Capital One No Hassle Cash Rewards

• APR: 0% until March 2011, then 14.9%
• No annual fee
• What you get: 2% cash back on gas and at major grocery stores, 1% on everything else. Rewards never expire and can be redeemed anytime. No balance-transfer fee.

Fidelity Rewards American Express

• APR: 13.99%
• No annual fee
• What you get: 2 points for each 1% spent. You do not need a brokerage account to have the card. You need a brokerage account only to redeem points for cash deposits to your account.

PenFed Premium Travel Rewards American Express

• APR: 13.24%
• Annual fee waived for the first year
• What you get: 5 points per $1 spent on airfare, 3 per $1 on dining and hotels until Dec. 31, 2010, 1 per $1 elsewhere; 20,000-point sign-up offer when $650 is spent in first three months. No foreign-transaction fee. Good balance-transfer offer. Military families join free; others pay a onetime $20 fee.

Credit cards offers have enough moving parts that there are no one-size-fits-all solutions. Consider your own spending patterns, look for hidden gotchas like caps or tiers on the rewards you can earn, and pay attention to changes in the programs that can make your rewards cards less valuable over time.

And, of course, don’t use rewards cards if you carry a balance. Look for low-rate deals instead.