Credit cards are a completely different ball game than they were in the 80's. It was once the case that the only use for a credit card was simply to be able to buy something and pay for it later. Now though, competition between the credit card companies is so stiff that they are offering all sorts of rewards to try to attract more clientele.

Credit cards compete for your business by offering incentives such as low introductory interest rates or rewards to new customers like free flights and cash back. These rewards are generally based on how heavily you use your card. There's a trick to these incentives and we'll show you how to take advantage of these incentive programs.

Rewards cards: You should shop around for the best deal you can find if you decide to go with a card which comes with rewards. Find rewards which you will actually use; for example, free flights as a reward makes little sense if you don't fly often or do not plan to charge a lot on this particular card - these cards often require a lot of spending to actually get the rewards.

Try to find rewards which fit your needs. Cash back rewards are good for anyone. Always read the fine print though and be sure to ask the rep fro the credit card issuer if there are any conditions or limits attached to the rewards.

Also ask them if there is a time limit on redeeming the reward(s) as some are only valid for a set period of time and then they expire unused.

If you are thinking of applying for a gas station reward card, be sure that there is one of those gas stations in your city first.

Low introductory rates: This one has a lot of possibilities. For instance, let's suppose that you have a credit card which has a 19% APR (annual percentage rate). You make a few small charges and have a balance which can be paid off easily within six months. Then you find a card with a one year 9.9% introductory APR for new customers. You could get this new card, transfer your old balance to it and pay it off much more quickly while saving a substantial amount of money. You could then either cancel the old card or save it in case you ever need it.

Remember to take advantage of the fierce competition between the credit card companies; it can really work out in your favor. Shop around and see what is out there, you might be surprised by what you find.

Always do your homework ahead of time. You can gain a lot by doing this. Don't be in a hurry to sign up for the first credit card which waves a reward your way.