When it comes to the types of credit cards that seem to be garnering the attention of prospective cardholders today, there is no surprise that reward cards are at the top of the list. Even while many are searching far and wide for low interest credit cards, rewards still are finding their way into pocketbooks mainly due to the fact that cardholders are receiving cash among other things for using their plastic to make purchase they were going to make anyway.

As one of the most popular Chase credit cards, it now looks like Chase has decided to raise the amount of cash back (up to 5 percent) you receive on some of the most popular purchases going into the spring and summer seasons for the Chase Freedom Card. For cardholders, the two important dates in which you should start to receive the five percent cash back are March 15 and April 1. On March 15, cardholders will receive increased cash back at places like home improvement stores, lawn and garden outlets, and retail locations that sell home furnishings. On April 1, cardholders will get the five percent cash back on place where they dine, at grocery stores, drug stores and more.

When it comes to cash back and reward credit cards the boost with Chase Freedom may be something that is only the beginning when it comes to enticing cardholders to pay with their plastic. As many people have started to spend less with their credit cards, issuers have become hard pressed to come up with ways to become the top choice for making payments once again. As Chase was not the first to start the year off using money as an incentive (Discover’s "It Pays to Discover Everyday Giveaway"), they will definitely not be the last and you can be rest assured that other issuers will follow suit very soon.

When was the last time that you decided it was time for you to get a new credit card? If you are like millions of other Americans you have either switched card issuers already or are probably thinking about it. While many people choose low interest credit cards for their new plastic, cash back cards have dramatically gained in popularity and have demanded the attention of issuers and non-issuers alike.

When it comes to using credit cards, rewards cards are finding themselves being used more simply due to the fact that the cardholder is getting something just for using the card. In most cases issuers have increased rewards points or cash back amount to keep cardholders using their plastic over cash. Even as the year ends and cash back rewards from the holiday season seem to re-adjust back. We could see increased rewards for making purchases stay a little longer as issuers use this to gain new cardholders.

Rewards that people want (in order or preference) include:

• Cash Back
• Merchant (Retailer)
• Flexible Points
• Gas
• Travel (ie: airline)
• Charitable Donations
   

As rewards are becoming a key feature that many Americans are wanting, many issuers are using this to entice consumers not only with their credit cards but with their debit card products as well. Debit cards rewards have grown tremendously within the last year and are scheduled to be even more competitive in 2010. We have seen discounts for shopping both online and in-store of up to 12% as well as rewards such as air miles that can be redeem with no blackout dates or restrictions.

Looking to benefit from online sales this holiday season it looks like a couple of credit card issuers are raising the stakes when it comes to making purchases online. These issuers (Discover and Wells Fargo, so far) have recently announced rewards such as double cash back and reward points just for shopping with them and using your credit card to make the purchase.

In Discover’s case during this holiday season, cardholders who use their cards to make purchases will now earn double cash back anywhere they shop but will receive additional benefits for shopping online at "ShopDiscover". Those that shop online can receive the following:

• Up to 20% Cashback Bonus or double miles
• Ability to shop at over 150 online retailers
• Extra holiday Cashback Bonus at over 35 retailers (limited time)
• Weekly specials (free shipping, discounts, exclusive offers)
   

In Wells Fargo’s case it is more of enhancing a shopping portal in which their cardholders can now earn more reward points. The portal known as the "Earn More Mall", gives its rewards program members the opportunity to earn bonus points for purchases they make at participating online retailers in a variety of categories including apparel, gift cards, electronics and more.

As homeowners are trying harder than ever to pay down debt and save, it looks like one credit card issuer wants to help out in the best way it knows how. That issuer is Wells Fargo, and it was recently announced that they will be expanding its Wells Fargo Cash Back Card program to give cardholders the ability to pay on their home equity loan principal by simply using their credit card.

So how does it work? Under this program all eligible purchases made with either the cash back card or Wells Fargo Home Rebate Card earns cardholders a 1 percent rebate which goes toward the mortgage’s principal. This rebate is then applied in $25 increments and has no cap on the amount of rebates cardholders can earn.

For Wells Fargo, cardholders using rewards they have accrued to go toward their principal on their home mortgage loan is nothing new. In fact since 2007, when their Home Rebate Card was first introduced, more than $10 million has been applied to home loans. This recent expansion however is something new as they look to capitalize on the growing amount of cardholders who now have home equity lines of credit, which have skyrocketed due to historically low interest rates. 

What is your opinion on a credit card that puts cash back earned toward your mortgage?

According to a recent article on Bankrate.com titled "Credit Card Rewards Help Foil Recession", it seems that the economic downturn is not only changing credit card reward programs but also the way that Americans collect and redeem the rewards. From this article it shows consumers are migrating to cash back rewards more than other type of rewards credit card due to the fact cash back can help struggling consumers make ends meet.

To many consumers and experts, cash back rewards on credit cards offer the most value and are typically the best type of rewards if looking to get a new credit card. As cardholders collect points for every dollar spent, they can redeem those points for gift certificates to specific retailers, grocery stores, restaurants, gas stations, and more. These are rewards that consumers tend to use more often because they normally go to these places anyway.

In my opinion, consumers that switch to cash back credit cards especially during times such as these are making a wise decision. Since many people are using credit cards for purchases that they make everyday, such as groceries, gasoline, and utilities it seems smart to get cash back whenever possible. The cardholder however must be smart about their purchase and make only those they are able to pay off at the end of the month. If not, the interest accumulated will not only negate any cash back possibilities but it could potentially cost you in the long term.