 TITLE: What Is a Cash Back Credit Card? CONTENT: How to Use Your Credit Card Responsibly\n---------------------------------------\nEarning cash back is a great perk of some credit cards, but you can't let that benefit lure you into irresponsible spending behavior. Make sure you're familiar with how credit cards work and how to use them wisely and to your benefit rather than your detriment.\nSpending in excess just to earn rewards isn't a smart strategy, since that spending will almost certainly cost more than the benefit of the cash back. Plus, if you spend beyond your means and end up carrying debt, you'll have to pay interest on it, which will further negate the potential cash back rewards.\nThe smartest way to use a cash back card is on everyday purchases you would have made anyway (like the ones that would normally go on your debit card). Then, pay off these purchases every month in full and on time every month. This way you'll get the most out of your rewards card without paying interest or accruing debt.\nThere's another reason why carrying a balance in the name of rewards is a bad idea: Having a high credit utilization ratio can hurt your credit. Your credit utilization ratio measures how much credit debt you have compared with your total available credit limit, and it plays a big role in your credit score. A ratio above 30% can make you look riskier to lenders and creditors and harm your credit score. END