Tips to Get the Most From Your Credit Card

• Get rewards by using your credit card often.credit card image by jimcox40 from Fotolia.com
  
  Credit cards are a financial tool used by consumers to purchase items without having to immediately pay for the purchase. While many consumers misuse credit cards and charge up a large balance, many others use their credit cards as a financial tool to help them manage their funds and get rewards all at the same time. There are several ways in which a consumer can use a credit card to increase his financial strength.
  
  

Utilize 0 Percent Interest Offers

• If a borrower has a low account balance on a credit card, or opens a new card, there are often special interest rate offers for the borrower to utilize to get "free" money. If the borrower sees an opportunity to purchase items at a 0 percent interest rate for a set time period, the money becomes "free" for that set time period. This is a good way for the borrower to pay off higher-interest-rate debt, borrow money for free, or budget a large expense over a set time period as opposed to a large lump sum payment upfront.
  
  

Get Rewards

• Many credit card companies offer rewards for their customers, such as frequent-flier miles or gift cards to popular chain stores. If the borrower uses the card and pays the balance in full each month, the rewards come as a "free gift" just for simply using the card. This can be a good way for the borrower to pay for flying without having to spend his own funds, or a way to get gift cards to give as gifts to others during the holiday season.
  
  

Use It as a Budgeting Tool

• Some borrowers use their credit card as a budgeting tool. Many of the nationally known credit card companies, such as Discover, give their borrowers monthly reports detailing their expenditures and placing them in a budget to show the borrower where his money has gone. This can be a good tool for the borrower who pays his bill once a month in full, but has trouble tracking his expenses in a checking account.
  
  

Increase Your Credit Score

• If a borrower keeps his credit card balance below 30 percent of the limit, it lessens the impact of the credit card on his credit score. Additionally, the longer the credit card is kept open, the more of a positive impact it has on his score. Utilizing a credit card wisely can help to improve a borrower's credit score.