8. Don’t charge your card just to earn rewards
Free airline miles, car rentals or redeemable points at various stores can sound like exciting incentives to use your credit card. You might think that it is one way for you to actually make the credit card company pay you for a change, right? Wrong!
The fact of the matter is that the odds are always in favor of the credit card companies. They know that you have to spend a significant amount of money on credit cards to earn a reasonable amount of points that you can then use like spending money. They also know that you will invariably falter when it comes to keeping your outstanding balance at $0.
When they get the chance to accrue interest on your credit card, the interest you pay on your credit card is easily going to be more than the rewards you are eligible for, thereby giving you a financial expense instead of a gain.