There's a school of Responsible Credit thought that says the only way to live is cash-only. All cash, all the time. Credit is a huge no-no amongst believers in this method. And while I agree that those who habitually spend beyond their means can certainly benefit from the cash-in-earmarked-envelopes method of relearning how to budget and spend accordingly, most of us can handle credit cards in a responsible manner. Used properly---and by this I mean: only buying what you can afford, and paying off the balance every month---credit cards can actually help make you more money.

It's true! Don't fear the credit card (unless you'll be tempted to overspend, in which case you should stick to cash). Here are just a few ways you can earn through credit card use:

Cash back on purchases. Although Discover Card is known for starting this trend, competition amongst credit card companies is fierce, and at this point, most credit cards offer some sort of cash back program. Check the terms (and comparison shop, too), but in general you earn some percentage back on all purchases, or specific amounts on targeted purchases. Maybe it's not a lot, but it's free money.

The opportunity to increase that earned cash. Again, using Discover Card as the example (though many other cards do something similar), you can take that cash back and either apply it to your statement balance or get a check and walk away with it, sure. Or, you can apply it towards a gift certificate with one of their shopping partners, and depending on the store, $20 will get you $25 or $30 or maybe even $40, on redemption. Personally, I'm more than happy to consider my Discover cash back my "Lands' End slush fund," but there are hundreds of vendors from which to choose, and again, it's all free money.

Bonuses or decreased fees from regular billers. Take a good look at your monthly bills; chances are excellent that one or more of those billers offers a program whereby signing up to automatically bill your credit card gets you either a one-time bonus or an ongoing fee decrease. Check it out. Not only do you get whatever incentive that biller offers, you'll also get more cash back from the credit card for the increased charge through them!

Extended warranties and/or replacement coverage. Check the terms of your particular card, but many offer product protection beyond whatever the manufacturer or store already offers, meaning there's never a need or temptation to buy a pricy extended warranty. And maybe you get a free repair or replacement when you need it.

Don't forget the special programs. One last avenue to keep in mind---credit cards often offer short-term "extra" ways to earn more cash back that aren't well advertised. (Discover offers theirs through the Get More program, which requires a separate sign-up every time.) Furthermore, most companies will offer incentives to new customers such as "one dollar cash back for every transaction for the first three months," and if you call and ask for that promotion as an established customer, chances are they'll say yes or offer you something else that's similar. It's a classic case of "if you don't ask, you don't get." So ask. The worst thing that happens is that they say no.

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