You might think that in order to control your daily spending you must pay in cash rather than by credit card. But in fact, if you use the right card in the right way, you can not only limit your spending but earn a variety of valuable rewards that are not available for cash transactions.

Different credit card points and rewards cater to different kinds of consumers, so the choice depends on what you enjoy most:

Dining

Most banks cooperate with restaurants in launching credit card payment promotions. When you visit your favorite eatery, see which cards it accepts. If there is a promotion, you might get a 10 –15% special discount, extra rewards points or a complimentary dish. These benefits are not available if you pay with cash. Just ask your waiter or waitress whether any credit card promotion is available.

Shopping

If you love shopping then it makes sense to choose a credit card based on what kind of privileges it offers. If you choose a cash-back credit card, you'll get a bonus for every transaction, which will be automatically credited to your monthly statement.  If you prefer gift rewards, you should select a credit card that offers double or triple reward points per each sales slip. This will help you earn points faster so you get more gifts or discounts.

Travel

If you are a frequent traveler, you should seek out a credit card that rewards you with airline mileage points for every purchase. You can redeem points for free or discounted flights of airlines allied with the issuer of your card. Some cards offer airport lounge privileges.

Getting ahead

If you are focused mostly on work and staying home, you might like to consider a credit card that gives you access to spa services or a health club, for the sake of stress relief. If you are focused on saving money, you could try a cash-back credit card that gives you extra rewards for your monthly gas purchases.

Privileges for all lifestyles

• Cash back Paying by credit card sometimes provides a discount in the form of cash back instead of an upfront discount. The cash back that you earn each month will be credited to your account in the next billing period, subject to terms and conditions of your bank or credit card issuer. The issuer might offer a standard cash back rate for each purchase or a special rate during a product promotion campaign.

• Free or low-cost installments Many merchants offer a special 0% installment plan when you pay by credit card. This kind of promotion is worthwhile when you buy a big-ticket item like a home appliance. You won't need to plunk down a lump sum when you buy it, and during the special installment payment period you won't be charged any interest.

• Credit card reward points Many cards offer reward points, which you accumulate to redeem for prizes, coupons, merchandise or other benefits. This kind of privilege is a like a bonus that you earn every time you make a purchase. The important thing is that most credit cards don't put any time limit on the point validity period. You can take as much time as you want to save up points for the reward you prefer.

Credit cards undoubtedly offer a variety of benefits. If you use a card wisely, it can pay handsome rewards.