The choice of weather or not to have credit cards is a big one all in itself, but if you do use credit cards regularly there are some things you should do to keep your credit in good shape.

1.  The most important thing to do with any credit card is to pay on time.  When payments are late, companies will hit you with late fees.  Some companies will also increase your interest rate, which will cost you more money in the long run.

2.  Pay more than the minimum payment.  If you can not pay off your entire balance from month to month, you should at least try to send in more than the minimum payment.

3.  Look at your monthly statements.  You should always check your monthly statements to ensure that the correct charges appear on your account.  Also check the interest rate to make sure that your credit card company has not increased the rate without notifying you.

4.  Be aware of your card history.  If you have had a card for a long period of time, you may want to hold on to it.  Sometimes the length of your credit history plays a role in your credit score.  You may want to make a small purchase occasionally on that card, to prevent the credit card company from canceling it.

If you decide to use plastic, always use it wisely and make it work to your advantage.

photo source:  Lotushead