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Welcome to the first installment of Credit.com's Best Credit Cards in America.

Every three months, I'll look at two specific categories and analyze the best cards in each group. In this first installment, I'm giving awards for the Best Cash Back Credit Card and the Best Travel Rewards Credit Card in America.

The category winner isn't chosen according to its popularity. The winner is the card that scores the highest number of points according to a unique formula that I designed. The formula considers 41 factors. It gives each card a "benefits/rewards score" and then subtracts the "costs score."

VIEW OTHER WINNERS:

Best Airline and Low Interest Cards
Best Credit Cards for Students
Best Secured Cards
Best Cash Rewards Credit Card

For each card that's in the "competition," I'll get knee-deep in the cardholder agreement's details, terms and conditions, and rewards programs. The fine print is never easy to read but that's where the card's true value is revealed. Oftentimes, when you look at the details, the card's costs outweigh its highly touted rewards.

Using my formula, the "perfect" card gets a score of 100. There are certainly no perfect cards out there. But the final score for a card can tell you two things: how close a card is to perfection and how it compares to other cards in the same category.

Chase Freedom Visa - As Low as 9.99% APR

Score: 70

It feels great to see an APR below 10 percent, doesn't it? This card won the cash back title by a healthy margin. The generous cash back program and the low cost of using the card combine to make a powerful credit card for consumers.

Why it won

The rewards: After your first purchase, you earn 5,000 bonus points, which is equal to a $50 check. Get 5 percent cash back on rotating categories, such as groceries, gas and dining. There is a quarterly cap of $1,500 on categories, but after you reach the cap, you still get one percent cash back. You also get one percent cash back on all other purchases. There are no limits to the number of points you can earn.

The costs: As the name suggests, the variable APR for this card goes as low as 9.99 percent. You get a zero percent introductory APR for six months on purchases and for 12 months on balance transfers. You can also get an APR as low as 9.99 percent on balance transfers after the intro period ends. There's no annual fee.

At publishing time, Chase Freedom Visa is offered on Credit.com product pages and Credit.com is compensated if our users apply for and ultimately sign up for the card. However, this relationship does not result in ANY preferential editorial treatment.

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1^st Runner-Up: PenFed Visa Platinum Cashback Rewards Card

Score: 57

If you don't have a family member in the military, you can join the Pentagon Federal Credit Union by contributing $20 to the National Military Family Association. This card has excellent cash back rewards so the small one-time fee is worth it.

Why it won 1^st runner-up

The rewards: You get five percent cash back from gas purchases paid at the pump. On all other purchases, you get one percent cash back. There is a $50,000 limit, but that's a pretty high cap.

The costs: You get a 13.99 percent variable APR on purchases, which is a decent rate for this category. There's no annual fee and no cash advance fee. Through June 30, 2011 you can also get a 4.99 percent introductory rate (and pay no fee) on balance transfers. The 4.99 percent APR stays in place for the life of the balance.

2^nd Runner-Up: Capital One No Hassle Cash Rewards (for excellent credit)

Score: 56

This card is aptly named because it offers a straightforward, easy-to-understand cash back program. Consumers can save a bundle on two of life's necessities: gas and groceries.

Why it won 2^nd runner-up

The rewards: You get two percent cash back on purchases at gas stations and grocery stores. On all other purchases, you get one percent cash back. The best part is that there's no cap on the amount of cash you can earn.

The costs: You get a 12-month introductory zero percent APR. After that, the variable APR starts as low as 12.99 percent. There's no annual fee, no foreign transaction fees, and no balance transfer fee.

Best Travel Rewards Credit Cards in America

The Winner

PenFed Premium Travel Rewards American Express Card

This is a fabulous credit card from both a rewards and a cost standpoint. The home page for this card states: Experience a new level of rewards. Well, they aren't kidding. But the low cost of this card is a selling feature, too.

Why it won

The rewards: Spend $650 in the first three months and get 20,000 bonus points. You earn 5 points for every dollar spent on airfare. Then you earn one point for every dollar spent on everything else. There's no limit on the number of points you can earn.

You get to enjoy a concierge service and outstanding travel benefits and discounts. Once you spend $15,000, you get a complimentary membership to Priority Pass, which gives you access to more than 600 airport lounges.

The costs: It's unusual to find a card that offers truly generous benefits and rewards has along with a low cost. There's no annual fee, no foreign transaction fees and no cash advance fee. You get a 13.99 percent APR, which doesn't blow you away but it still isn't bad considering the level of rewards. The card offers the same rate for a cash advance, which is usually around 25 percent.

Through June 30, 2011 you can also get a 4.99 percent introductory rate (and pay no fee) on balance transfers. The 4.99 percent APR stays in place for the life of the balance.

1^st Runner-Up

Capital One Venture Rewards Credit Card

Many rewards programs are so complex it's a wonder that consumers can make it through the fine print and emerge with a clear understanding of the details. The simplicity of this program is a thing of beauty.

Why it won 1^st runner-up

The rewards: Spend $1,000 within the first three months of opening your account and earn 10,000 bonus miles. You get two miles for every dollar spent on all purchases. You can use your miles for any travel expense.

The costs: You can get an APR as low as 11.9 percent. This applies to both purchases and to balance transfers. There's no balance transfer fee and no foreign transaction fees. There's a $59 annual fee, but it's waived for the first year. The low cost of the card more than covers the annual fee.

At publishing time, Capital One Venture Rewards Credit Card is offered on Credit.com product pages and Credit.com is compensated if our users apply for and ultimately sign up for the card. However, this relationship does not result in ANY preferential editorial treatment.

Tie for 2^nd Runner-Up

Escape by Discover

This card makes it easy to accumulate miles quickly. And while you're racking up miles, you can enjoy the low cost that comes with this card.

Why it won a tie for 2^nd runner-up

The rewards: You get 1,000 bonus miles for making at least one purchase a month. This program lasts for 25 months, which gives you an opportunity to earn 25,000 bonus miles. You get two miles for every dollar you spend on all purchases and the number of miles you can earn are unlimited.

The costs: You get a six-month zero percent introductory APR on purchases and on balance transfers. But what really makes this card stand out in its category is the low variable APR, which starts at 10.99 percent. There's a $60 annual fee, but the cost-friendly terms and conditions more than offsets it.

At publishing time, Escape by Discover is offered on Credit.com product pages and Credit.com is compensated if our users apply for and ultimately sign up for the card. However, this relationship does not result in ANY preferential editorial treatment.

Tie for 2^nd Runner-Up

Capital One VentureOne Rewards Credit Card

This card usually takes a backseat to other travel rewards cards, but what is often overlooked is the low-cost credit card terms.

Why it won a tie for 2^nd runner-up

The rewards: You get 1.25 miles for every dollar spent on every purchase. The points you can earn are unlimited. You can fly on any airline and there are no blackout dates. Redeem miles for flights, hotels, car rentals and more.

The costs: You get a 12-month zero percent introductory APR on purchases. After the intro period ends, you can get an APR as low as 11.9 percent. There's no annual fee, no balance transfer fee and no foreign transaction fees.

At publishing time, Capital One VentureOne Rewards Credit Card is offered on Credit.com product pages and Credit.com is compensated if our users apply for and ultimately sign up for the card. However, this relationship does not result in ANY preferential editorial treatment.