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Using credit cards is in itself like an art. While some people end up ruining their finances and getting into massive debt, other people use it for their own benefit, making great savings and using it as a great tool to enhance their finances. Here are some simple strategies that can help you benefit a lot from credit cards.
If it is possible you should have a budget for spending money. If your income is 1000 dollars for example, and you pay everything with your credit card including all other utilities, you must keep a budget of say 50-60% of the income as the credit card bill and shouldn't exceed it. With time you will know if you can increase it slightly or decrease it. The point is, if you don't charge your credit card with expenses you cannot afford, you will stay free of debt and your credit card is harmless. Never ever spend on your credit card, thinking you need the item now, but you will pay the bill in the coming month. That wouldn't often happen and you will end up paying extra interest.
The monthly expenditure report that the credit card company will send you, will show you what you have spent your money on. If you see a lot of wastage, you can pull the strings tighter. This way you will become more efficient at managing your finances and avoiding throwing money away.
Make big purchases at the beginning of the month, assuming you can afford it. You can save the interest on this big amount for as many as 45 days, before you need to pay the bill due on the credit card. The accumulated interest you would get if you saved that money in a bank for 45 days wouldn't be much, but over a period of time, you would have saved a lot.
If the reward is a 2% cash back, take the few dollars you save thankfully. But if the loyalty points offer a 10% discount if you make purchases worth 100 dollars for example, stay away from them. It is ok to lose your reward points as long as you don't have to spend what you didn't intend to spend at the first place. 9 out of 10 times, you don't want the item, so a discount offering is just drawing you to spend when you don't need to.