There are so many cards/rewards programs out there and each
person’s needs are different, but I’ll summarize my answer this way:

Cash Back. Avoid Fees. Pay your balance.

Let me break it down a little:

Cash Back: From
what I have seen, the cash back cards offer both a better return on money spend
AND greater flexibility in how to spend it. 
Most websites you find break out these credit card programs and do their
comparison within three major categories: (1) Cash Back (2) Airline Miles (3)
Rewards/Hotel Points.  Apparently, they
don’t think you can compare across the three. 
I think you can and when you do, you’ll find that Cash Back cards are
almost always the best.  Here’s how I
compare – simplify each one into a percent cash back basis:

1.      
Airline Rewards – Standard airline rewards are
25,000 miles for a domestic US “saver” award ticket (used with restrictions)
and 40,000 miles for a domestic US “standard” award ticket (used with less
restrictions).  If I have to actually pay
for a ticket, I usually pay something between $200-$300 depending on the
flight.  Let’s say it was $250 on average
– that would mean it is about $0.01 per mile ($250/25,000 miles) if I can get a
“saver” award.  Since I can’t always get
a saver, I value miles slightly less than $0.01/mile.  If an airline card gives me 1 mile per dollar
I spend, I figure I’m getting a little less than $0.01 per dollar spent
(slightly UNDER 1% back). 

2.      
Hotel/Points Rewards Cards– These are the
hardest to break down, but you just have to compare how you accumulate points
and then look at how many reward points are required for a few different
items.  Find the cash value of these
items and do the math.  You can follow
how I did it for airline miles ahead or if you want to save time just trust me;
these cards aren’t usually a good deal (usually UNDER 1% back).  Here’s why:

a.      
Card companies expect that you won’t calculate
how their points translate into dollars (or don’t want you to).  Why else would they use points instead of
actual dollars? 

b.     
Unlike Airline cards (where there is a specific
arrangement between the credit card company and airline), credit card companies
are mostly getting MSRP on these products. 
Since you can get a good discount on these items online and they are
paying MSRP, that lessens the benefit of these rewards.

3.      
Cash Back – Most cash back cards offer something
like 1% back on all purchases.  These
best in class offer something like 5% back on gas, 2% back on groceries and 1%
back on everything else (totaling something OVER 1% cash back when you average
it out).  Think about your mix of
spending and find the best Cash Back card.

One caveat – if you travel a bunch
an airline or hotel card can really offer some nice perks when you use them to
buy airfare or hotels.  Otherwise, I don’t
think they are quite as lucrative.

Avoid Fees:   Some cards (particularly Airline Reward
cards) offer nice up front perks (like a free ticket), but they also have
annual fees.  Try to think long-term with
these cards.   It isn’t good for your credit to open up a new
card each year, so be sure to focus on the long-term perks of the card instead
of just the attractive initial offer. 

Pay your Balance:
If you don’t pay your balance every month, rewards cards are a poor option
since they often have higher interest rates. 
If you carry a balance, try to find a card with the lowest interest rate
possible.  Higher rates will wipe out the
benefits of the rewards in a heartbeat.

With all that in mind, I really like Discover Cards (they
offer cash back, plus you can get bonus cash by using your cash at certain
retailers) and Amex Blue.  But, like I
said, check out which one is best for your situation based on how you spend.

It depends on what you do, I had a card once that gave frequent flier miles and I never cashed in on them. I have friends who exclusively travel on their frequent flier miles, and yet they don't save any money because they often have to land and take off so far from the intended destination that the cost of renting a car and paying for gas makes it a wash. . . no, they haven't noticed this fact yet. Or they try to get a family member to pick them up from an airport six hours away, so the cost is alleviated by another person, but that's messed up!

I like the cards I get that are attached to websites or stores where I regularly shop. The Amazon.com visa card I have gives me double points on anything I buy at their site with their card. About every other money I get a $25 coupon to buy stuff at their site. That's fun for me.

Hi @culverc! There are top credit cards based on airlines, hotels, restaurants, and groceries. You will find a comprehensive list of the best credit cards that offers the best incentives and rewards to its users. This is according the Forbes.

For Airlines:
Miles By Discovers will get you one mile for every dollar on all other purchases and free to earn unlimited mileage rewards as well as enjoy no expiration date limit. The miles you get can be redeemed for free travel including free airline tickets and gift card rewards.

For Hotels:
The Starwood Preferred Guest (American Express) will earn you 1 Starpoint for every dollar spent and double Starpoints at Starwood hotel properties and other retailers that participate. With this card you will earn points for free night stays and upgrades at a huge number or Starwood hotel and international resorts.

For Restaurants:
Ge True Earnings Costco Card From American Express cover all restaurant purchases. You will be able to earn 3% for annual gasoline purchases of up to $300 (1% thereafter), 3% for restaurants, 2% for travel, 1% everywhere including Costco.

For Entertainment:
American Express Gold Card is a classy gold card from Amex. You can earn 1 point for every dollar spent wit no preset spending restriction or limit.

And for Groceries:
Capital One No Hassle Points Reward earn you 2 points per dollar spent on purchases at grocery stores, gas stations, and drug stores. You will also get 1 point for every dollar spent on everything else.

I always thought that American Express offered the best incentives on their cards. One reason American Express can afford to do this is because their processing fees are higher. So stores pay more for you to charge on your American Express than your Discover Card, Visa Card or MasterCard.

American Express, unless you have something like an Open Card, is not really a credit card thought. It is a charge card. This means you have to pay it off every month, the complete balance.

The have incentives all the time. At the time I was using my so much, they had double rewards for gas and grocery purchases. They also have coupons, special discounts, offers and give their members options to purchase tickets to some events at a presale.

I also had flight insurance with the card and concierge service. The draw backs was the annual fees for the card and membership program.

I get 1.5% back on my PayPal account from card purchases directly into my account once a month. Again, it isn't a credit card, but a debit card. Still a pretty good reward. I am standing at 1,600 for this year alone.