Everyone would like the chance to receive something for nothing, and that’s the promise behind rewards credit cards. By simply spending money that would be spent anyway, cardholders are awarded with all sorts of perks including cash back, frequent flyer miles or points that can be redeemed for gift cards or merchandise.

However, if used incorrectly, rewards credit cards can actually cost consumers money, and even those who pay off their balance each month may be missing out on opportunities to maximize their earnings. Here are 10 ways to make the most of your rewards credit card.

[See: 8 Ways to Maximize Your Credit Card Rewards.]

Analyze your spending. The first step to maximizing rewards is to pick a card that is tailored to your spending habits. “It starts with setting a budget you’re comfortable with,” says Matt Freeman, credit card products manager at Navy Federal Credit Union. Then, look for cards that may offer extra points or perks for spending in your largest budget categories.

Avoid high annual fees. Most rewards credit cards come with annual fees. While that alone isn’t a reason to pass over a card, make sure the rewards justify the price. “Cards [with annual fees of] $69 to $99 should pay for themselves,” says Jill Gonzalez, an analyst with WalletHub. “Anything higher than that and you should be asking yourself, ‘is it worth it?'”

Skip cards with excess restrictions. “Make sure you’re selecting a card that lets you redeem your rewards at any time and in any denomination,” says Ryan Scully, vice president of card marketing for Discover. Some cards may have blackout dates for travel redemptions or require cardholders to reach a minimum amount before they can receive cash back or redeem points.

Look for sign-up bonuses. One of the best ways to quickly rack up points or miles is to look for cards with lucrative sign-up bonuses. Depending on the card, these could provide new cardholders anywhere from 30,000 to 50,000 bonus points. The catch is you have to spend a certain amount — often $3,000 to $4,000 — within the first few months of opening the account. If that amount is too rich for your budget, consider cash back cards that have bonuses with no minimum spending requirement.

[See: 10 Easy Ways to Pay Off Debt.]

Use multiple cards if possible. Gonzalez says WalletHub recommends people limit their credit cards to no more than three or four. That amount gives consumers a manageable number of options to select the card with the best rewards for a particular purchase. “Don’t have too many that you’re grasping at anything in the checkout,” Gonzalez says.

Opt into bonus offers. “Keep an eye out on rotating categories,” Freeman says. Some cards offer additional points or cash back periodically for specific types of spending. For example, the Navy Federal Visa Credit Card is currently offering an additional 2 percent cash back for purchases at warehouse stores such as Costco and Sam’s Club. While some card issuers automatically dole out these added rewards, others may require customers to opt-in on their website to be eligible for the bonuses.

Shop through the online mall. Many credit cards also operate online shopping malls that make it simple to reap extra rewards. Instead of going directly to an online retailer website, cardholders click a link in the online mall to be taken to the site. By shopping through that link, cardholders may be rewarded with extra points or cash back. “For our customers, the offers sweeten around the holidays,” Freeman says.

Make the most of bill pay options. From utility payments to insurance premiums, there are a number of regular bills that can be paid with a credit card. “In terms of optimizing cards, I think bill pay is highly underutilized,” Freeman says. To maximize awards, first make sure the bill doesn’t tack on a fee for credit card payments. If not, set up your account to automatically pay each bill with a rewards credit card. Then, use the money in your checking account to pay off the credit card balance immediately.

Skip merchandise rewards. While much of the talk about rewards credit cards revolves around earning more points, how you redeem them is important too. “We always say cash is king. If you’re going for straight cash, there is no expiration date, no blackout date,” Gonzalez says. Other good options include gift cards and travel redemptions. However, Gonzalez says to avoid redeeming for merchandise, since that typically translates into a poor value for your points.

[See: 12 Simple Ways to Raise Your Credit Score.]

Keep your spending in check. Credit card companies don’t offer rewards simply because they’re nice. They hope the opportunity to earn something will entice shoppers to spend more than they would otherwise. Stick to your budget and pay off the card balance each month to avoid costly interest charges. As Gonzalez says, “Having rewards is nice, but having cash in your bank account is nicer.”

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10 Ways to Make the Most of Your Rewards Credit Card originally appeared on usnews.com