Credit cards are often believed to be the root cause of all financial woes. For, they induce people to spend money on the expectation of future income and, thus, lead them into debt. That is true also, to some extent. However, if used prudently, credit cards can not only help you manage your financial needs, but can also prove to be your best friend in times of crisis. We are taking a look at some of the ways credit cards can help you manage your finances and earn reward points: Streamlining your finances: Contrary to perception, credit cards can help you streamline your finances. In the first place, credit card is a spending instrument. However, unlike cash expenses that are not always tracked, you get a monthly statement detailing all your expenditures, helping you to analyse your spending patterns. This can be a very helpful tool in understanding your expenses and cutting down on unnecessary expenditure. Building a Credit History: The other thing that the credit card does is helping you build a credit history. If you have never used a debt instrument such as a bank loan, there is no credit information on you available. Getting a loan without a credit history can be a difficult task as you have no way to prove your credit worthiness. \u201cBy using a credit card, your credit score builds up over time, provided you repay the outstanding amount before the due date and do not default in repayment. Long-term disciplined use of credit cards reflects your credit worthiness and it may help you to raise your credit score and get attractive loan offers from top lending institutions when you need them,\u201d says Navin Chandani, CBDO, BankBazaar.com Cash Back Rewards: Lots of credit cards these days offer cash back rewards on the purchases made by customers, which usually range between 5 and 10 per cent. This is one of the best ways to earn while you spend. However, you will be able to make the most of cash back offers if you pay your credit card bills in full and on time every month. Paying Utility Bills: If you are one of those who find it difficult to remember the various due dates of their utility bills \u2013 like electricity, phone and gas bills \u2013 and thus fail to pay their bills on time and suffer heavy financial loss by paying late fines every month, then credit cards can help you being consistent with the payment of your bills. You can also earn reward points simply by paying your bills through your card. Complimentary Insurance, Other Benefits: Usually credit cards also give complimentary accident insurance, baggage insurance, and various other benefits like reward points on spends. Another big advantage of credit cards is that they provide an interest-free period of 45 to 55 days, depending on the credit card company. Therefore, if you are able to clear the amount due before completion of this period, you are not liable to pay any interest. Thus, it can help you in a big way in times of need.\u00a0However, to avail all these benefits, a judicious use of credit cards is essential.