Building good credit is so important if you plan on buying a home, looking for way to finance higher eduction and even securing a better job. You credit plays a part in everyday life.

Our education system does a terrible job of teaching young people about the impact of credit. All starting with that first credit card you begin to define your history of credit. The credit limit is not what defines your credit history, using credit responsibly does.

Do you use your credit responsibility or does credit control you? If you want to build a good credit history follow these few credit tips.

Only Use Credit If You Can Afford To

When you plan your purchases and build a track record of not over spending you are communicating to lenders and creditors that you understand and know how manage money. This will make borrowing later if needed easier and making back easier as well. Buying only what you can afford will also keep you a safe distance from debt.

Only Tap Into a Small Amount of Credit You Have Access To

Hitting your credit limit or coming close telegraphs your lenders of how irresponsible you are with credit. What does maxing out a credit card tell lenders? It tells them you may have some or are heading for financial difficulty. As a rule say below 50% of your credit limit, better yet stay below 30%.

Stay Away From Collecting Credit Cards

Credit cards can be a real temptation. The more credit you can touch the more you’ll often spend. Most people need no more than one card. I have a business credit card and a personal credit card. What more do I need. I manage those cards and only those cards. They provide me enough of a credit limit to purchase anything I need.

Pay Your Balance in Full

Pay off the credit balance every month. If you follow the step above and only buy what you have planned and can afford, paying the balance off every month should not be a problem. Remember a part of your credit score and credit history is you timeliness of payments. Pay your balance off and on time and your credit will improve.

I know paying the balance off each month can be difficult once you’ve fallen behind – I’ve been there. Start this month paying off all you’ve purchased, plus the interest and then anything else you can afford. If you cannot do this then stop charging! Always pay more than the minimum payment.

If you use credit wisely and be smart you can enjoy the use of money and credit cards, if not they can be your downfall and slave.