Credit cards are not all bad if they are used responsibly. It is only when they are misused that people incur mounds of debt, high interest rates, late fees, etc. If you learn to use them wisely, you can maximize their benefits such as cash back, bonus points, airline miles and better credit scores. To protect your credit scores and your finances, there are certain guidelines that you should follow.

#1: Experts recommend that you have between two to six cards.

(Applying for a lot of credit cards can hurt your score. Also, closing several at once will lower your score as well.)

#2: Always read the fine print to know what your interst rate will be, your credit limit, the grace period and how your payment is applied.


#3: Stay within 30% of your credit limit. Credit bureaus look at how much of your available credit you use. Using your card excessively will negatively impact your credit scores.