There are many ways to make the most of your credit cards. Here are my top 5 tips:
1. Choose cards with rewards and no annual fee, unless the benefits, like frequent flyer miles, are greater than the fee.
2. Pay off the balance every month.
3. Put information for each card in an envelope, and write the credit line and interest rate on the outside of the envelope for easy reference.
4. If you have to carry a balance, use the card with the lowest interest rate.
5. Take advantage of cash advance offers. When we purchased our last car, I did not want to take all of the money out of our retirement funds. We got a credit card offer for a low interest rate for 6 months, which was half the interest of the used car loans at our bank. It was also less than what our retirement funds were yielding. I put the money in the checking account, purchased the car, and paid off the balance before the low rate reverted back to the usual rate, which is 15 percent!