Credit cards are a means of building credit since the 1970′s. However, you do not want the cost of credit to be exorbitant. You always want to pay a fair and reasonable price for the credit that you obtain and use. The best rates for credit cards are just under 10% and most credit card companies have very similar rates. Its the extra benefits that make most cards stand out from the crowd.

The card with the best rate is Chase Freedom Visa with 9.99% APR. The Capital One MasterCard has an interest rate of 10.99%-19.99%. The Citi Platinum MasterCard and Visa both have 11.99% – 20.99% APR. The Discover cards carry a 11.99%- 20.99% interest rate. These cards are all available to persons with excellent credit. The Discover card offer additional benefits like 5% cash back on purchases of travel, gas, groceries and restaurants.

Additional benefits or perks are offered by many cards and often cards are designed specifically for the purpose of accumulating points for travel and accommodations. The Citi Gold AAdvantage World MasterCard allows you to earn 1 point for every $1 spent on purchases. These points are applied toward free flights on American Airlines. The Citi Hilton HHonors Visa Signature Card gives points for Hilton Hotel stays at 6 points for every $1 spent at participating hotels and $2 for each $1 spent on supermarket, drugstore and gas purchases. Chases’ Disney Rewards Visa Card offers discounts and cash back that can be redeemed at Disney theme parks and hotels. Chase also offers the Continental Airlines One Pass Card and the United Mileage Plus Signature Visa Card both offer points that accumulate for free flights on Continental Airlines and United Airlines. Chase also has cards that build rewards on Southwest Airlines, at Hyatt Hotels and Marriott Hotels.

Other rewards are given for using credit cards. Chases’ Ink with Ultimate Rewards helps you build points toward the purchase of just about everything from travel to merchandise. American Express has a rewards program which allows you to amass points as you spend one, two and three times what you spend is earned. The Citi Thank You Preferred Rewards Card gives you 5 times the points for every $1 spent on gas and groceries, and at drugstores.

Credit cards are not offering great rates these days but they are offering great rewards programs, because they need to encourage spending and rewards programs accomplish that goal. The best rates are offered for people with the best credit, so don’t be surprised if you do not qualify for the lowest rate offered. For the best credit card, take the rate you qualify for and utilize the discounts and points to lower your overall costs.