Chandra,
For me, in my personal classes, there is no extra credit given, ever. I believe each teacher and institution has to decide what works best for them.
My experience has been that students use EC as a way to bring up their grade or avoid failing a class. They ask to do EC assignments that are "busy", but often have little value towards their learning. I think if an assignment I might give is important (worthy of granting credit), it should be included in the required assignments to begin with. Problems I've had with EC include subjectivity in grading, questions of fairness, good students feeling slighted that weaker students are getting a break, and artifical grade inflation.
What I have allowed is if I give more than 10 quizzes, I may drop the lowest quiz score. Another strategy is to ask a question on an examination that is like a bonus question (usually an essay question), to allow the student to demonstrate their knowledge in a particular topic (this is in addition to the points available on the test). These slight adjustments give a small amount of wiggle room but are distributed to all students and graded in a similar fashion. In general, I think EC is about points and grades, and little to do with learning. This is just my bias and perspective, and I respect that others may have opinions that differ.
Barry Westling