To reap the benefits of using a credit card make sure you choose a credit card with paybacks.  You want a credit card that will reward you well, charge no annual fee or perhaps a reasonable yearly fee that allows you to earn the rewards you desire. Whether you have a travel credit card, cash back credit card or generic rewards card, understanding how to maximize your benefits will help you take full advantage of the credit cards rewards.

Before we discuss getting the most out of your credit card, let’s quickly talk about the dangers of overusing a credit card. A credit card company allows you a short-term loan, this loan needs to be paid back. If you don’t pay it off each month, the annual percentage rate will accrue. If you allow the interest you pay to grow the rewards given may not be worth the amount of loan interest you will pay out. So, if and whenever possible it’s best to know your budget and only purchase what you can pay off each month.

Ok, here a few easy ways to earn and maximize your reward benefits:

• Use your credit card for most purchases, the more you use it, the more reward points you will receive.

• Pay off your balance on the credit card in full each month.

• Check your credit card and find out what purchase will give you awards. Not all credit cards give you points for every purchase.

• Set up automatic billing using your credit card  for all your monthly bills such as cable, utilities, cell phone but be sure and check your statements. This is a win-win. You don’t have to worry about paying your bills on time and at the same time points are accumulating.

• Take advantage of the free services your credit card offers such as fraud protection, car rental insurance, extended warranties, special discounts, and upgrades, etc.

Finally, using your credit card wisely can benefit you in some positive ways, besides the reward points. It provides cardholders an opportunity to build credit, protects you from credit card fraud and possibly provides zero foreign transaction fees. Take a look at your cardmember benefits and make sure you are taking advantage of all the extra perks.