The credit card industry takes a lot of heat, but the honest truth is if you use them right way, you can have the upper hand. Because the market is so saturated, now financial institutions have to offer rewards and cash back to get consumers to choose their cards. If you use the right cards and pay off your balance in full each and every month, then you can actually profit off of them.

Let’s take a closer at the different reward categories typically available:

Hotel Credit Cards
There are a number of cards out there which are affiliated with major hotels and resorts. With these, you will receive higher rewards when you stay at their properties. In addition, your spending everywhere else will earn you thinks like a free night’s stay.

Right now one of the most lucrative out there right now is the Starwood Preferred Guest credit card. It offers Starpoints which you can use for upgrades and free stays at Starwood hotels. The best part is they usually offer a very attractive signup bonus; at the time of writing, they are giving 25,000 points just for signing up (enough for up to six free nights).

Airline Credit Cards
Alternately, you may be better off going with a card that gives you airfare rewards instead. Almost every major airline out there offers their own co-branded card. With these, you sometimes can benefit from upgrades and perks when you fly – like no baggage fees.

The main drawback is that usually the rebates can only be used for flying with that airline. If you fly with the same carrier all the time, this doesn’t matter, but most people like the idea of having some flexibility. Fortunately, there are a number of other cards out there which earn you miles that can be used any airline. Currently, Discover and American Express probably offer the best deals, but Chase and others have some decent offers too.

Gas Credit Cards
With gas prices on the rise, this is one of the most popular categories lately. There are dozens of different cards on the market which offer a discount or rebate on gasoline purchases.

When it comes to gas cards, each typically falls under one of two categories: those co-issued by a gas station and those which are not. For example, the Chevron credit card can only be used at Chevron stations. Instead, many opt for one that offers rebates everywhere, like the Amex Blue or Discover More card. However these credit card deals are constantly changing, so be sure and do your research before you apply.

Tags: cash back, credit card deals