I’m a huge fan of reward credit cards. I’ve earned tons of cash back, hundreds of thousands of points/miles and have taken lots of free trips, including a personal favorite of going First Class to Europe. However, as fun as it is to earn rewards, it’s important to use your credit cards responsibly. The second you don’t pay off your balance in full each month and start paying interest, you’ve lost the points game. In an effort to ensure you’re playing the game safely, and wisely, here are four tips everyone can benefit from:

1. Educate yourself – Take the time to educate yourself regarding using credit cards and your credit score. A lot of people go wrong because they don’t fully understand what they are agreeing to when they sign up for a credit card. They don’t understand the terms and conditions, the APR, and any interest or fees they could be subject to. They also don’t understand the impact all of this has on their credit score. So, give yourself a bit of reading to do for the year ahead, and get up to speed with everything you need to know regarding borrowing money and maintaining a good credit score. You will thank yourself for it, and you will feel much more confident about making decisions that impact your financial future.

2. Ask for a higher credit limit – If your credit score isn’t as good as you would like it to be, why not ask for a higher limit? This can increase your credit rating in two ways. Firstly, if a lender is willing to offer you a higher limit, this shows that you are a low-risk lender. Not only this, but you will be using a lower amount of your available credit, which is another way a higher limit will increase your credit score. Needless to say, this is only going to apply if you do not use the added credit that has been given to you. Even if your credit score is in a decent place, asking for a higher limit will likely help your credit score into a better place!

3. Think twice before applying for another credit card – As much as we try to prevent it, there is every chance that we may find ourselves in need of a bit of help throughout the year. From unexpected repair bills to time off work due to medical reasons, there are a number of reasons why people find themselves looking for a new credit card. However, before you dive right in, it is important to assess your options carefully. Is a credit card right for you? Would short-term cash loans be better? This all depends on your financial situation; there is no right or wrong answer. However, you do need to think about your options carefully, as every application you make will feature on your credit report, whether you go for it or not.

4. Make sure you are using the right card for you – There are many different types of credit cards available today, offering a wide range of deals for people to take advantage of. However, just because rewards are being offered does not mean that you should use them for the sake of it. After all, rewards are only good if they are something you are going to be using a lot. There is no point in using a card that has flyer’s miles if you don’t travel on a regular basis, nor is there any point in using a cashback card if you’re trying to cut down on spending. These cards can often have a higher interest rate; so don’t let any offers tempt you unless they are actually going to be worth your while.

Disclosure: Some links will earn me a commission.