Credit Commandments

You've got your credit card and are ready to shop! Before you plunge into the mall or your favorite website, you've got to keep in mind that credit is a serious thing - if you abuse it, it might cause problems later on when it's time to buy, say, a car, a house, or that speedboat you want to show off.

Here are handy tips for using your plastic wisely:

Watch the limit! Your credit limit is the max you can spend. Keep tabs on your credit limit online, or on your monthly statement. The amount you have available is the credit limit minus anything you've currently charged.

Pay in full = no Interest It's tempting to pay a minimum amount each month, but interest will creep in and, in the end, you'll be paying more for your stuff. If you pay the entire bill, though, you'll avoid interest charges.

Pay on time, every time No mincing words on this one: pay it when it's due, or pay more out of your pocket.

Avoid cash advances Cash advances are convenient, but save them for real emergencies (like car breakdowns.) When you get a cash advance, you'll have to pony out a service fee (in most cases), and usually pay a higher interest rate that starts to accrue immediately.

Moving? Don't leave your credit card company hanging! If they mail your statement and it takes time to forward to your new address, it might be late by the time you get it.

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