With the onslaught of credit card debt, an increasing number Americans feels unsure about using a credit card.  Yet, many still believe that credit card purchases do have its advantages and they are not embarrassed to admit that they use their cards for almost every purchase they make.  An individual like Tyler Tervooren, a writer in Portland, Oregon, is one of these individuals.  Tyler is able to reap all the benefits associated to credit cards with little or none of the drawbacks.  There are five smart ways to use credit cards.

One way to gain the most out of your credit card is to use is as often as possible.  Tyler says, "I only carry cash for the few places I frequent that don't accept credit for small purchases (mostly coffee shops). Right now, I have six, but I expect to have several more over the next 6 months.”  The increase in usage and balances insures the maximum number of reward points a cardholder can earn.

However, with the increase in balances also comes with an increase in financial responsibility.  It is vitally important for cardholders to pay off their balances in full each month to avoid any interest charges.  “In the seven years of my credit history, I have never carried a balance or paid a fee of any kind,” Tervooren says.

After enough reward points have been accumulated, it is important to use those points wisely and advantageously.  Tevooren commented, "I am very strategic with the cards that I apply for. I use them to build large sums of frequent flyer miles that I use to exchange for otherwise very expensive trips.”

A majority of credit card providers also offers free budget tracking services.  These services allow the cardholder to see where their money is going and should be taken advantage of.

The final tip in using your credit cards wisely is the pick the one that is most suited to you.  If you follow Tevooren's method in using credit cards, you can basically ignore a cards interest rates and focus on its rewards program instead.  Tyler said, " I purchased my entrance to a marathon in South Africa for next summer on a card that offers good frequent flyer rewards and, because it's a travel-related card, it comes with some extra travel insurance provisions above and beyond what you would get with a debit card.”