Do you know how to use credit cards to your advantage? If you don’t, you might be losing money.

Some people hate credit cards, but is mostly because they’re using it the wrong way. If you make proper use of credit cards they can help you build a strong credit score and even save money with benefits, discounts and rewards.

So, if you want to learn better ways of managing your credit cards to take advantage of them, read this article with 10 easy tips. Some of these tips – or all of them – might be just what you need.

Credit cards are full of benefits and perks to help you save money. Contrary to what many think, credit cards are not evil, and they do not have the power to cause you debt. It’s up to you to use them correctly to enjoy rewards and even save money. To use your card wisely, you need to budget and always watch your expenses.

Knowing that many people struggle to use credit cards properly, we’ve made this list with ten simple tips for you to apply in your daily life. We are sure that by following these tips, you will be successful when using your credit card and will even be able to save money.

The first step is to choose your card correctly. There are dozens of options on the market, but not all of them will suit your lifestyle. For example, there’s no point in paying the annual fee for a premium travel card if you don’t travel often. Start with more straightforward cards with no fees to understand your style and spending pattern.

Once you’ve tracked your spending to understand your pattern, choose a rewards program that suits you. From then on, pay attention to your rewards and do your best to optimize your earnings. Even if 1% cashback or 1 point doesn’t seem like a lot, you can save a good amount of money and turn those points into benefits over a year.

One of the primary mistakes people make when using credit cards is overspending. Even if the money doesn’t come out of your checking account automatically, remember that you will have to pay your bill at the end of the month. So never spend more money on your credit card than you have. Think of it this way: your credit card limit is the number you have in your bank account. This rule only applies if your bills are paid, so you don’t waste the money you should be using to pay your rent or electricity bill with other purchases.

Every time you delay a payment, you lose money in penalties and interest. If possible, put your credit card bill on automatic payment. This way, you avoid forgetting it and will save money.

It is becoming easier to make online payments for the most diverse reasons. You can buy things, pay for services, pay your bills, and many other things. However, pay attention to websites where you provide banking information. Many cyber thieves can clone your card or hack your account and steal your money. Shop at trusted merchants, and notify your issuer of any suspicious activity on your account.

Your credit card is a tool for building your credit score. But for this to happen, you must keep your usage as low as possible. Experts recommend using up to 30% of your total credit limit. An excellent way to do this is to pay your credit card bill before the due date constantly. That way, you’ll always have credit available and maintain a good usage ratio.

Many people think that paying the minimum is enough, but it’s not an efficient way to use your credit card. The issuer will charge interest on top of any amount you leave behind. Organize your budget to pay the full amount or as much as possible.

When hiring your credit card service, carefully read the information about fees and interest. Remember to put these values in your budget, or you will be surprised by them. That’s an important part of how to use credit cards to your advantage.

Do you know that little candy you buy every time you pass the newsstand? Or that coffee at work break, accompanied by a cupcake. Or a short uber ride, followed by another one, another one, and another one. These small purchases might seem harmless, but they can take a toll on your bank account at the end of the month. Remember: $10 a day doesn’t seem like a lot, but $10 times 30 equals $300.

Prefer to make larger purchases with your credit card to help you have a broad sense of spending. Sometimes our minds can fool ourselves, and we don’t worry about small values because we don’t visualize the total.

A positive point of using a credit card is the possibility of making a large purchase and splitting your credit card balance into smaller installments. However, you need to be aware of these installments and include them in your budget. Otherwise, you could spend this money on something else and create debt.

Did you already knew some of these tips? Implement these habits, and you will see your finances improve. And if you need more information about finances, take the opportunity to read the following article about refinancing.