Credit Card Reward Programs - Airlines Out, Cash is King?

I have a lot of miles with American Airlines, and use an American Airlines mileage credit card, but I am re-thinking it after reading a recent article in the Chicago Tribune business section.

The article said that, with U.S. airlines making their frequent flier programs less attractive (less available seats, increase required mileage, fees, etc), it might be time to start using a cash-back card.

The article went on to give some tips for choosing a rewards card:

1. Go online - Sites like CardRatings.com, IndexCreditCards.com, and LowCards.com can help you choose a rewards card.

2. Prefer cash - it can be used in more places than miles, points, and gift cards. Also, unlike miles or points, cash cannot be arbitrarily devalued.

3. Get more than 1% back - it is possible to get a rewards card offering more than 1% back (at least on some merchandise like groceries or gas).

4. Consider other factors - no annual fee, automatic rewards payments, no reward limit. Signing bonuses are good, but watch out for introductory offers that expire after a couple of months.

5. Big spenders - if you can charge over $1,000 per month, consider the American Express Blue Cash card. It has a tiered system, with bigger rebates after $6,500 is spent.

6. Small spenders - find a card that gives 1% back right away, gives you the most rewards for your spending pattern, and pays after only $25-$50 cash back is earned.