The Credit Card Power User

Used responsibly, credit cards can offer free perks and services that add to your bottom line. The trick is to never pay the credit card companies a dime and reap all the rewards - that's the life of a credit card power user.

Simply changing the way you pay for things is the first step. Every purchase goes on a card - from basic items like gas, food, and utilities to big ticket items like appliances and home repairs. But remember, to maximize your rewards you must pay your bill in full every month.

Here are the most common ways to get the most out of your credit cards:

Rewards & Perks - Credit card rewards are commonplace and vary from cash and miles to points programs. Research cards and find one with the specific rewards you're looking for. Look for new additional benefits such as ShopDiscover which allows you to earn rewards for shopping through a link on the Discover card website.

Opening new accounts can be a great way to jump start your rewards. Many offer fat bonuses or free stuff to entice new customers.

Services - Many cards offer free travel and auto rental insurance when you use the card to pay for the trip. Others offer free concierge services. Check your terms and conditions for the free services you are entitled to.

Grace Period (free loans) - Paying on credit generally gets you a grace period of 20-25 days. That means interest doesn't start accruing until after this period. Which, if you pay your bill in full, means you're getting an interest free loan. Instead of paying cash, let that money sit in a high interest savings account until your bill arrives.

All the benefits can be wiped away by paying interest or making late payments. Remember, the goal is to never pay the credit card companies a dime so you must spend responsibly. The rewards and benefits may be small but they do add up over time. As I like to say, pennies add up to dollars and dollars add up to shiny new toys.