Most people do not really understand credit card benefits and why you should use them.

In the day to day operations of your personal finances, credit cards have become just a normal part of doing business. If you are renting a car, booking airline tickets are out shopping online for clothes or gifts you will using one.

Debit cards are an acceptable way to do the same thing and it comes directly out of your checking account which some people like so they do not ring up debt.

If you just use your credit cards the same way and pay the debt off each month you can get some great benefits.

One is on everyday purchases. When you buy something from Best Buy or Office Depot they will ask you if you want an extended warranty. Most manufactures warranties on electronics will automatically cover you for one year. The right credit will add an additional year onto the 1 year manufactures extended warranty automatically when you purchase the item with the card. Yes it gets you a 2 year warranty for free.

Another great benefit is purchase protection. I had bought a BBQ pit from Wal-mart and a buddy of mine had it in the back of his truck. The wind caught it and blew it out of the truck and it crashed down onto the ground. It was bent badly and I would not have been able to use it or return it to the store. I remembered I had purchase protection and was able to go down that day to the store and replace it for free and was reimbursed completely.

When you go and rent a car for a family vacation or just for a short trip, you will be asked if you want rent a car insurance. If you use your card this will be automatically covered when you charge the amount of the rental car onto your credit card. You are completely covered for free!

Cash back points can be built up quickly and you can get real cash back or some companies have arrangements with large merchants where you buy even more with those free cash back points you build up. It is a great feeling after a few months to get a nice sized check back just for using them, even if you pay it off each month.

The other real benefit of using a credit card instead of say cash is that it is much more secure. If you get robbed with cash on you it is just too bad. If you have a credit card it will be cancelled and also is fraud protected.

There are many reasons and benefits to using a credit card over a debit card or cash. But the ones listed above are a few of the key ones and hope this will make you think differently about how you utilize them and maximize and leverage the great credit card benefits that come automatically.