Making the Most of Your Rewards Points

SmartMoney shares strategies for racking up (and spending) credit card points:

Pay off your balance. The more you spend on interest, the less your points or miles -- and eventual rewards -- are worth.

Be loyal. The more credit cards you're using, the fewer points you'll accumulate on each. (The exceptions: Citibank and American Express, which combine points from several credit cards into one account.)

Avoid annual fees. In rare cases, credit cards that carry an annual fee can boost the value of your rewards. But for most consumers, it's just an added cost that eats away at their value.

Save up. Resist the urge to spend your points as soon as you rack them up. Issuers tier their programs -- the more points you have, the sweeter the reward.

Seek out point promotions. If you're earning just one point or mile per $1 spent, you're really missing out. Look to your credit card statement and your issuer's Web site for bonus-points offers.