Using a credit card requires smart spending and budgeting to avoid the dangers of getting into debt or paying hundreds of dollars in interest and fees.

However, when you shop carefully and use your credit card strategically, you can take advantage of rewards, points, and other perks to save or even earn money. And you can do it without getting into debt as long as you follow two basic rules: charge only what you can afford and pay your balance in full every month.

Learn how careful credit card use can help you earn, rather than lose, money.

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Transfer Balances to Reduce Interest

If you're currently carrying a balance on a credit card with a high-interest rate, you may be able to save hundreds of dollars by transferring that balance to a credit card with a lower interest rate.

Taking advantage of a 0% APR balance transfer offer will give you time to pay off your balance without accumulating interest. For example, you can save almost $400 by moving a $3,000 balance at 17% to a credit card with a 0% APR for 12 months.

Just be sure you can pay enough each month to bring your balance back down to zero within the introductory period. Otherwise, you'll end up losing money by still paying significant interest.

Use 0% Purchase APR

Many 0% introductory rates are offered only with balance transfers. However, some credit cards offer 0% introductory APR on purchases as well. This means that during the offer period, any purchases you make are also subject to 0% interest.

If you have a big-ticket item to purchase—new furniture, a medical procedure, or a vacation—using a credit card with a 0% APR will let you break up the purchase into multiple payments without having to pay interest.

Pay With a Cashback Credit Card

Cashback credit cards let you accumulate cash rewards on your credit card. If you can use your credit card to pay for most of your expenses, not just those purchases that earn the most rewards, you can max out your cash earnings.

For example, if you spend around $3,000 each month on bills and other expenses, you can earn $360 a year on a card that pays just 1% in rewards.

The caveat here is to make sure you are able to pay off your card balance at the end of each month. Otherwise, the interest you are charged will quickly outstrip any cashback you earn.

Skip the Car Rental Insurance

Using the car rental agency's rental coverage can increase the price of your rental every day. However, depending on the credit card you use, that extra insurance may be unnecessary.

Most major credit cards provide car rental insurance as long as you decline the coverage offered by the car rental company and pay for your rental with your credit card. This can save you tens or hundreds of dollars every time you rent a car.