Deal? Or No Deal?

You've just blown $45 on gas for the second time this week when you see an ad for a credit card that gives 5 percent cash back at gas stations and supermarkets. Deal?

DEAL IF...you never carry a balance. The catch with giveback cards is that they generally charge interest rates at least one percentage point higher than a standard card's. No problem for you if you pay in full (just make sure you choose a card that is low fee or no fee).

Your challenge is earning the most cash for your spending patterns, says Curtis Arnold of CardRatings.com.

If you charge less than $15,000 a year, choose Citi Dividend Platinum Select (800-248- 4226), which pays 5 percent back on gas and groceries, up to $300 a year. If you charge more, you can earn more with Blue Cash from American Express (800-223-2670). But...

NO DEAL IF...you ever carry a balance. "If you pay interest on a rewards card, you lose the value of the reward," says Catherine Williams, vice president of financial literacy at Money Management International.

Forget about rewards and look instead for a card with a low interest rate.

Save with gas-rebate cards

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