Bankrate.com Releases First Credit Card Rewards Study

NEW YORK, June 2 /PRNewswire-FirstCall/ -- Bankrate, Inc. NASDAQ: RATE released its first annual analysis of credit card rewards today. The company analyzed data from 30 leading cards provided by nine of the top issuers to determine the values of each card's cash-back rewards offerings. The study was designed by Bankrate to help consumers decide which card is right for them. To view the complete study, go to www.bankrate.com/creditcardrewards.

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What should you look for when picking your cash-back rewards credit card? Bankrate.com offers the following tips:

    -- Consumers with higher spending habits, typically around $1000 or more
       per month, should seek out tiered rewards cards that reward larger
       amounts with higher percentages of cash back.  Consumers who spend less
       each month should utilize flat percentage reward cards to get the
       biggest yield for what they spend.

    -- Be careful of cards that provide more cash back for milestones such as
       maintaining a revolving balance, transferring a balance from another
       card, or cash advances.  Often the interest rates on these transactions
       will outweigh the reward benefits.

    -- When picking a card, consider where you're shopping.  For example, many
       cards disallow purchases from warehouse stores as counting towards your
       cash back rewards.  However, if you're a frequent wholesale shopper,
       you can look into a card such as the TrueEarnings card from Costco and
       American Express.  Understanding your shopping habits will help you
       find the best deal.

    -- Look for cards with no cap on how much cash you can earn back.  Many
       companies will cap the amount you earn back at an amount between $300
       and $600 annually, but typically $500 is a good cap for how much you
       can earn.

    -- Watch out for fees.  Some cards in Bankrate's survey charge an annual
       fee to participate in the cash-back rewards program.  Fees can minimize
       or negate the cash-back rewards you can accumulate.

    -- Stay within your means.  Spending extra money outside of your budget to
       accrue more rewards points is particularly a problem with tiered
       rewards cards.

    -- Read the fine print and do your research.  Use Bankrate's survey data
       at www.bankrate.com/creditcardrewards to determine which card will be
       best for you.  Bankrate's tools use data such as how much you spend,
       which stores you spend at, and traditional credit card data such as
       fees and APR to determine which card is best for you.  No one cash-back
       reward credit card will be right for everyone.

"The key to getting the most out of your cash-back rewards card is research," said Bankrate.com managing editor Ellen Cannon. "Bankrate's analysis allows consumers to easily determine which card best fits their spending habits and will give them the best return on their money."

About Bankrate, Inc.

The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure and InsureMe. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2007, Bankrate.com had nearly 60 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! NASDAQ: YHOO, America Online NYSE: TWX, The Wall Street Journal and The New York Times NYSE: NYT. Bankrate.com's information is also distributed through more than 500 newspapers.

    For more information contact:
    Chris Spagnuolo
    Public Relations Manager
    cspagnuolo@bankrate.com
    (917) 368-8671

NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com.