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Credit card issuers know that you, as a consumer, are more loyal to brands like Avon, Barnes & Noble and Amazon than you'll ever be to them. The first offer of a lower interest rate that lands in your mailbox, and you're likely to be off — which is why card companies are increasingly hitching their stars to other brands. To win your favor, they're offering to help you buy more of your favorite products. Is there a downside to these deals?

The specifics of co-branded cards vary quite a bit, but generally, for each dollar you charge, you receive a point. Points can be redeemed at affiliated companies — for lattes at Starbucks, chinos at the Gap, flights on Delta. The number of accounts offering rewards jumped from 35 million to 56 million last year, according to the industry-tracking Nilson Report. And the offers keep rolling in. Bank One and Visa launched a card last month with Sony; American Express added to its program last week a company called Space Adventures, which sells "space flight experiences," including airplane rides that simulate weightlessness. According to Synovate, a market-research firm, U.S. households received 263 million pitches for co-branded credit cards in the last quarter of 2003, up 35% from the same period the year before. Many of these cards not only give you redeemable points every time you charge, but also give you bonus points when you spend at affiliated companies.

It may sound like a win-win situation, but watch out for the terms of the deal. "It can be fun and occasionally lucrative to get rewards," says Gail Hillebrand, an attorney with Consumers Union. "But don't allow the marketing to distract you from the true cost." Some factors to consider:

*ANNUAL FEE. Many co-branded cards, especially those affiliated with airlines, charge $40 to $90 a year just to belong to the program.

*ANNUAL PERCENTAGE RATE AND GRACE PERIOD. Interest rates for these cards average 1 percentage point higher than for nonaffiliated cards, according to Bankrate.com. "The interest charges can easily outweigh the benefit," says Greg McBride, an analyst at Bankrate.com. If you carry a balance, your first priority should be finding the lowest possible ongoing interest rate (not the teaser rate). If you don't carry a balance, make sure the card has a grace period of at least 25 days, or else you might incur charges anyway.

*RESTRICTIONS. Read that fine-print pamphlet for any caveats about how rewards can be earned or spent. For example, points on the Southwest Airlines Rapid Rewards card expire after 12 months, so you have to rack up 19,200 points (or $19,200 in everyday purchases) in one year to qualify for a free ticket.

• Barbara Kiviat