In 2019, credit card debt in the US reached more than $1 trillion. That's over $3,000 for every man, woman, and child in the country.

Many of us have multiple credit cards, and our providers are all too happy to raise our credit limits to try to get us to spend more.

Credit cards in themselves aren't a bad thing, however, as long as you use them right.

Read on as we take a look at the best way to use a credit card in certain situations.

Earning Rewards

Many credit cards offer great rewards. Some offer air miles, others offer hotel discounts, or some just offer good old cashback.

These cards can be a great idea if you're going to use them for purchases you were already planning to make anyway. You could pay in cash, in which case you get no rewards. Or you could use your credit card and earn a little cash back or a free flight.

The key is to make sure that you repay the balance in full, as otherwise, you'll incur interest meaning you will spend more than you would have just paying in cash.

As long as you stick to full repayment, then you can use this method for any purchases that will earn you rewards.

Paying Off Debt

It seems counterintuitive to use a credit get to get out of debt, but that may be possible if you can find the right deal.

Some credit cards offer incentives such as 0% balance transfers for a set number of months. That means that you won't pay any interest on your credit card balance until that fixed period is over.

If you're struggling with repaying debts, you could use one of these cards to pay off the debt and be able to pay off the balance without any extra interest payments. That's provided you can clear the debt before the deal expires.

If this isn't possible then you might want to learn about debt consolidation as an alternative.

Rebuilding Your Credit Score

Another great use of credit cards is to rebuild your credit score.

Lenders want to see a history of regular repayments. If you use your credit card for smaller purchases and pay it off in full each month, then you will build up the exact kind of history that lenders are looking for.

If you're doing this, don't use the card for any large purchases as you may find you are unable to make the full repayment. This will undo some of the hard work you've done on rebuilding your credit score.

Now You Know the Best Way to Use a Credit Card

Once you've learned the best way to use a credit card, the next task is to find the right one for your needs. Thankfully there are plenty of websites out there that will let you compare the huge range of credit cards that are available.

If you're looking for more great tips and advice then be sure to check out the rest of the site. Feel free to take a good look around.