Rewards credit cards are a great way to stretch the mileage of each dollar you spend, provided you always make it a point to pay your credit card bill in full and on time. While the type of rewards credit card best suited to you very much depends on the credit card you qualify for, how well the card's perks meshes with your lifestyle needs as well as the kind of rewards you are looking to earn, it helps to know that credit card rewards are typically awarded in the form of rewards points, miles or cash back.

For starters, there are a host of fabulous rewards credit cards on the market but majority of them are reserved for people with excellent or good credit. In a bid to appeal to more consumers with excellent or good credit, credit card companies are offering generous sign-up bonuses comprising cash bonuses, bonus points or bonus miles. Typically, cardholders can snag their sign-up bonuses after spending the required amount within a certain period of time as stipulated by their credit card company. Some cards also offer additional rewards when you add an authorized user to your credit card account.

If you are someone who travels on the regular, getting a travel rewards credit card, airline credit card and hotel credit card could go a long way in helping you save money in the long run. Airline credit cards offer airline perks and hotel credit cards offer hotel-oriented perks. Unless you are loyal to a specific hotel chain or airline, a general travel rewards credit card usually offers greater flexibility than a co-branded airline or hotel credit card.

Besides letting you earn accelerated rewards when you spend on travel, travel rewards credit cards typically throw in useful travel benefits such as free travel accident insurance, lost baggage insurance, trip disruption reimbursement, auto rental collision damage waiver, fraud protection, no foreign transaction fees etc. Some of the top-tier travel credit cards also come with fee credit for TSA PreCheck of Global Entry application in addition to VIP airport lounge access.

Looking for a more straightforward way to earn and redeem rewards? A cash back credit card could be the right fit for you. That said, keep in mind some cash back credit cards award you rewards points that you can later redeem for cold hard cash or even gift vouchers, statement credits or merchandise, instead of automatically handing out cash rebates at the end of every billing cycle.

If you are interested in getting a cash back card, be sure to find out whether the cash back credit card you are interested in offers a flat rate cash back on all purchases, fixed cash back on certain categories or if there are rotating categories you have to deal with every calendar quarter or so. Also, pay attention if the cash back credit card lets you earn unlimited cash back. A card that lets you earn unlimited cash back is great as you can milk the most out of your spending - including day to day expenditures like groceries and gas as those can add up easily.

Denise Bay is a staff writer at Email: