1.

Do: Utilize credit cards to your benefit.

Credit cards can be a beneficial, useful financial tool if used right. Most credit cards have user benefits and perks that can make your life easier and cheaper. With more financial technology developing and coming to the forefront of American society, more businesses and services are becoming credit card friendly. Take advantage of this change in culture and broaden your financial horizons.

Don’t: Be afraid of a credit card.

Even with all the advancements in credit cards, there is still a negative stigma about them. Credit cards are extremely useful if used right, but can be hazardous if used incorrectly or for the wrong reasons. If you are financially responsible and live within your means, a credit card can do nothing but help. Credit cards can be complicated if you are uninformed, but you should always keep yourself updated.

2.

Do: Always pay your bill on time!

Always pay your monthly credit card balance by the due date. If you pay your credit card bill on time, it will improve your credit score. Since your credit score is one of the most important numbers in your life, and it is crucial in securing future loans for college, homes and cars, you want to do whatever you can to make your score optimal. There are numerous features that make credit card bill paying quick and convenient like online bill payer through your bank or credit card websites themselves.

Don’t: Treat your credit card bill as a low priority.

With the amount of junk mail everyone receives, it can be easy to pass over that credit card bill in your mail box. There is absolutely no reason to have your credit card bill sitting at the bottom of a pile of mail, or in the same pile as useless junk. You will receive several pieces of mail monthly trying to get you to apply for different credit cards. Make sure to take all of your bills, especially your credit card bill, and pay them off as soon as possible so you don’t have to worry about it. If you treat your credit card bills the same way you treat paying back your brother for that $20 he gave you, you will end up in debt relief counseling very quickly.

3.

Do: Find a credit card with benefits that help you.

Credit cards offer benefits in every aspect of your life from airline miles and cash back to bonus points that can be used for meals at restaurants and gas. The more you spend on your credit card, the more points and bonuses you get. In addition to these obviously worth while perks, some credit cards also give less “sexy” benefits like 0% APR or no annual fee. These don’t immediately sound as good as airline miles or cash back, but can definitely save you some serious money.

Don’t: Apply for the first credit card that you receive.

Like I said earlier, once you turn 18 you will be bombarded with credit card offers through the mail. Don’t just take the first credit card that you are sent. When it comes to credit cards, it is far better to be assertive and gather information than it is to be content and taking the easiest route possible. It is perfectly normal to be intimidated by the amount of information you have to absorb, but don’t be afraid to get the help of a financial professional or even an older, finance savvy member of your family.

4.

Do: Call your credit card company to review all fees and rates.

“Always read the fine print” is a cliched piece of advice, but in this case it is very accurate and helpful. There are many technicalities and standards that come with having a credit card. Call your credit card company and ask questions about finance charges, late fees, interest rates after a promotion and other topics that a credit card company isn’t going to go out of their way to include in their advertising. Gather information and don’t be afraid to ask tough questions…it is the creditor’s job to answer you truthfully.

Don’t: Take all rates and advertisements at face value.

Being naive about credit cards can put you in a heap of trouble. Like with any other advertising campaign for any other business or product, creditors are going to make their product as attractive as possible and leave out the less magnetic details. If something is too good to be true, chances are it is. That includes impossibly low interest rates and other movable numbers associated with credit cards.

5.

Do: Cancel your credit card if you lose it.

It isn’t far fetched to think that you could lose your credit card. Things happen: you could get your wallet stolen, drop your credit card out of your purse, leave your credit card at a bar, restaurant or store, etc. My best advice to you is to cancel it as soon as you can to prevent someone else using your card. If you think you may have misplaced your card in your house or left it in a pair of pants, than by all means take a few hours to look for it. However, if you know you’ve lost it, cancel it! People will have no problem charging up a storm on a card that isn’t theirs.

Don’t: Just apply for a new one if you lose your credit card.

I know it’s a pain and an inconvenience to go through the trouble of canceling a credit card, but it is necessary. It is lazy to think its better to just get a new card instead of handling your lost credit card first, and it could definitely cost you. It isn’t a rarity either…I personally know many people who took this route and have run into major problems. Spending an hour on the phone to cancel your card is a lot better than spending months talking to credit bureaus to get all of the unapproved credit card charges reversed.

6.

Do: Make your credit card company aware if you aren’t able to make a payment.

Unforseen things happen in life: people lose jobs, unexpected expenses come up. I know a lot of people are going through this right now with the struggling American economy, so this advice is very timely. If something happens where you know you aren’t going to be able to pay your bill, call your creditor in advance and let them know. Be up front and honest with them, explain the situation and see if there is anything they can do for you. You are their customer after all, and it is their job to help you out.

Don’t: Skip your payment.

Skipping your payment, for any reason, is pretty much the worst thing you can do. A dropping credit score, accumulating debt and calls at all hours of the day is the last place I personally want to be. Like stated earlier, make sure to exhaust every option possible with your creditor instead of foregoing payment on your credit card bill. That is why there is debt counseling help and other financial assistance available.

7.

Do: Keep your credit card number and PIN numbers private.

If someone has your credit card number, security ID (the 3 numbers on the back of your card), expiration date and name on the card, they can use it online without any kind of ID check. In the age of the camera phone and identity theft, security measures are something that you should keep in mind. The same goes for your PIN number on debit or bank cards. Any security measure that you can take for credit cards should be something you actively and routinely do.

Don’t: Allow your credit card number to be seen or photographed.

Don’t leave your credit card sitting around or leave it somewhere where it can be easily taken. As stated above, 2 clicks of a camera phone and your credit card information is in the hands of someone else. Keep your credit card in your pocket or wallet and only take it out when you are using it. Your credit card shouldn’t be left on your desk at work, on the counter at a store in the mall, in the credit card slot at the gas pump or anywhere else in public.

8.

Do: Use your credit card for online purchases.

I’ve been using my credit card for online purchases for several years now, and I’ve never run into any kind of problems. There are middlemen and third parties you could go through like PayPal, ePassport, FirePay, Google Checkout etc. but you are adding an extra step. Some websites won’t accept these as well. Most, if not all websites that you can purchase items off allow credit card usage. Make sure the website is secured by looking at the URL: if there is an “https” instead of “http”, the “s” means secured. Also make sure the domain that you are putting your credit card information on is the same as the domain where the products are listed.

Don’t: Use your credit card on an unsecured site.

Anyone can put a website up with goods available. This day and age, anyone can have a website that can be made to look legitimate. Be aware of scammers and con artists online. If a website looks shady and doesn’t feel right, don’t give them your credit card information. No matter what you are looking to purchase, there are several sites that are going to sell it. There is no reason to risk your credit information and trust a questionable website.

9.

Do: Use your credit card for emergencies.

Whenever I go for a run or a bicycle ride, I always take my credit card in case of emergencies. If I feel my sugar getting low and sapped for energy, I’ll stop somewhere and get juice or something to eat. Taking a credit card is a lot easier than loose bills or your entire wallet. In addition, I always take my credit card in the car incase of breakdown or some other unexpected problem. I’m sure most of us have also been in the perdicament where it is 2 days before pay day, we are broke and don’t have any gas in the car. It happens…trust me, I know. Using your credit card in these cases is perfectly acceptable and recommended.

Don’t: Use your credit cards for day to day goods and services.

Having a credit card isn’t the same as having money. Don’t spend money you don’t have, or won’t soon have. Buying an expensive pair of jeans or the latest, greatest cell phone and not having to take any money out of your wallet or purse is nice, but you are going to have to pay for it eventually. Only use your credit card when necessary. Don’t make a habit of starting tabs at a bar or running up huge bills at clothing stores.

10.

Do: Keep track of your credit card limit.

Credit cards have a limit for a reason. Most companies do it for both their best interest and your own good. Credit cards can have limits of $250 or $500 up to $5,000 and $7,500. Make sure you know your credit card limit. Keep track of how much you’ve charged on your card in a given month to keep your finances in check and know where you stand compared to your limit.

Don’t: Go over your credit card limit.

If you go over your credit card limit, there are going to be heavy fees and penalties. Your interest rate could also increase, making you pay far more than you were. Know in advance what you are going to use your credit card for and get a card with a corresponding limit. If you are using your credit card for emergencies and online purchases only, than a $500 limit could be perfect for you.