Other articles by Todd Ossenfort:

The Credit Guy: Transferring debts to someone else requires his cooperation, good creditThe Credit Guy: Putting sister on credit card leaves its primary holder holding the bagThe Credit Guy: Changes to credit-card laws call for consumer vigilanceThe Credit Guy: Discipline is first step in a card-repayment planThe Credit Guy: Make offer, then it's up to collection agencyThe Credit Guy: Settling on card debt could settle your hashThe Credit Guy: First thing — let creditors know you're joblessThe Credit Guy: Rest easy about Social Security, card debtsThe Credit Guy: Company credit-card bill adds insult to injuryThe Credit Guy: Have a counselor handle embarrassing inquiry

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Q When choosing a credit card, is it best to choose a cash-back card or an air-miles reward card? I once read that credit-card companies buy miles at very cheap prices, and that it's not worth getting a card with air miles. Is this true?

A Your question comes at a very good time. The airlines and their frequent-flier miles programs have been in the news recently. What has taken place is that many airlines are now charging or will soon begin to charge a fee for flights purchased with frequent- flier miles. Delta is charging a fee of $25 for U.S. and Canadian trips and $50 for all other reward trips. Northwest is charging fees up to $100, and American is charging fees of $25 for domestic, $50 for trans-Atlantic and $100 for flights to Asia.

Add to the fees charged by the airlines to use the miles, any annual fee that you may have associated with a reward card and going for a reward card with air miles may not be your best bet financially. As with any new credit-card acquisition, you need to look at what is best for your needs. Most reward cards have a higher interest rate than non-reward cards. So, if you are planning to carry a balance on the card, which I don't recommend, then you need to take that into consideration when determining what card to choose.

Below are several things to consider when deciding between a cash reward or an air- miles reward credit card:

• No fees are attached to a cash reward. You will not have to pay a fee for a "fuel surcharge" or a fee if you need to change your plans.

• The value of cash cannot be devalued. In other words, once the cash reward has been issued, its value will not change. A miles reward may be devalued by requiring you to have more points or "miles" to purchase the same rewards.

• Cash can be used anywhere for anything. As an example, if you were to spend $25,000 on a cash-reward card, it is likely that you would receive $500 to $800 in a cash reward that you could use to purchase airline tickets anytime without any restrictions.

When choosing a reward card, keep in mind that you will want a card that rewards you for using the card that is typical for your use. Look for a card that gives you rewards right away and will credit your account in increments of $25 or $50 if you are not a big spender. Also, some reward cards give you 3 percent back on the top three categories for which you spend, such as gas, groceries, drugstore items, etc.

Remember that with any credit product you need to have a clear plan as to how you will pay the bill once the statement arrives. If you plan to carry a balance, how much can you comfortably afford to carry? Don't add a card unless you have a plan in place for repayment.