Few people wake up in the morning, yawn, stretch, and say, “Today I want to become financially literate!” However, many do want to become financially independent and no longer stress over their finances.

Unfortunately, most of the financial advice avaliable is rife with misconceptions. It seems everyone has an opinion on the best way to handle money. People debate which hot, new stock they are going to buy, or which investments will provide the greatest return. This information overload tends to make people do the worst thing possible with their finances: nothing. But fortunately, most finances can be handled smartly with an understanding a few simple concepts.

The first of these concerns optimizing your credit cards so that you can take advantage of credit card companies as opposed to them taking advantage of you. Some people avoid credit cards because they think it will cost them money. However, not only can they cost you not a dollar, but they can actually save you money while boosting your credit score.

Here are the top three reasons you should use a credit card:

1. You can build up your credit score. Your credit score is a number between 300 and 850 that represents how risky you are to lenders (higher score = less risky). By using a credit card responsibly, you demonstrate to lenders that you are a low-risk customer, and you will get more favorable rates when taking out a car loan or mortgage (this could save you tens of thousands of dollars in your lifetime).

2. You are able to track your spending. Using a credit card will help you to be more conscious of your spending habits, which is a great first step to saving money.

3. Credit card companies offer rewards, lots including cash back, discounted travel, and concierge services (explained below).

So, if you do not already have a credit card, get one. One simple way to get a credit card is through your bank, which will automatically link to your checking and savings account. Otherwise, you can find and compare cards at bankrate.com. Here are two key elements to look for:

1. cards with no fees.

2. cards with rewards that you want. Cash back cards are simple (i.e. you might get 1 percent back on every purchase you make). However, cards that give you flights and gas for free will save you much more money. Just choose a card that reflects what you like to spend money on.

Once you have a card, it is necessary to optimize your use of it. First of all, always pay your balance in full each month. Otherwise you will be charged interest on your remaining balance (the average percent annual rate is 14 percent). For instance, if you bought a $200 textbook and only made a $15 minimum payment each month, it would take you 15 months to pay this off, including $18 in interest. You can make your own calculations at bankrate.com/.

Next, take advantage of all of the rewards on your card (which you may not realize you have – call your company and have them send you a list of your rewards). Here are some notable examples:

1. Extended warranties: If you buy electronics on credit, most cards will extend the warranty on your purchases (so when Best Buy asks if you want to pay extra money for an extended warranty, say “no”).

2. Concierge service: Many credit cards offer concierge services. For instance, if you’re on vacation and need restaurant reservations or recommendations, you can call your credit card company for you and they will set everything up.

3. Car rental insurance: Most credit card companies will insure you up to $50,000 for car rental insurance, so say “no” to extra collision insurance when renting a car.

This all may seem very daunting- but surprisingly you can do everything described above in less than an hour (30 minutes to research different cards, 15 to set one up, and 15 to analyze all of your rewards). Keep in mind that the simple act of using a credit card responsibly can have a significant impact on your future level of financial independence.