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Credit cards with reward programs can help stretch your budget-if you use them wisely. The only way to get the most out of a credit card reward program is to pay your balance off each month. Frankly, I think that is the only way to use a credit card period.

My goal is to make the credit card company pay me, not the other way around. I do this by carefully selecting the cards I use. I don't look for the lowest interest, since I always pay my cards off every month. I also try not to have more than four credit cards because then my finances become so complex, the rewards I earn are not worth it.

Your needs and your wants are the two things you should consider when looking for credit cards with rewards. Right now I am restoring an old house. I found a Citicard that earned me Home Depot gift cards whenever I used it. I earned hundreds of dollars in Home Depot gift cards by using my Citicard and was able to stretch my home restoration budget.

While a Home Depot credit card does not offer any rewards, I obtained one anyway, and it saved me a lot of money. I got 10% off of my first purchase when I opened the account. I could spend up to $2,000 and get 10% off. Since I needed lots of materials, I spent the $2,000 and saved $200. Every so often, I get special offers and 10% off coupons from Home Depot because I have a Home Depot card. These offers have saved me hundreds of dollars. Between the Citicard rewards and using my Home Depot credit card, I saved a couple thousand dollars.

I buy a lot of my clothes from L.L. Bean so I applied for and got an L.L. Bean credit card. I earn credit toward buying clothes, not only when I purchased items from L.L. Bean, but whenever I purchase items from other companies. Furthermore, by using the L.L. Bean card when purchasing from L.L. Bean, I receive free shipping.

Your needs are probably different than mine. Maybe you use your car a lot for business and pleasure. Obtaining a credit card that saves you money when you put gas in your car would be useful. Some gas credit cards offer you five cents a gallon off or more when you use the card to buy gas.

If you travel a lot by plane, there are credit cards that earn you free mileage. Also there are cards that save you money at various motels and hotels. Before applying for credit cards with reward programs, determine what cards will give you the most return based on your needs. Then go to credit card comparison sites like http://www.creditcards.com/rew ard.php or http://www.cardratings.com/ and compare various cards. Make sure you read the fine print.

I have one credit card that I use to earn rewards for my wants rather than my needs, and that's my Amazon card. I use it regularly because I like to buy old movies, television shows and books. So far these rewards have bought me eight seasons of Andy Griffith, five seasons of Dick Van Dyke, three seasons of I Love Lucy, one season of Family Ties, along with some books and movies.

Whatever reward cards you end up obtaining, don't let your borrowing get out of control. All the rewards in world are not worth going into debt for.

Learn more about this author, Dan Weaver.
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