Managing your credit cards is one of the most important things you will do for your financial health. If you are already in over your head, facing the very real possibility of excess debt, or starting out with a new card - there are things you can do to keep/regain your financial stability.

One of the key things you need to understand is that credit card companies are not in the business of loosing money. They are in the business of making money - big money. They do this by charging you high interest charges, and financing fees such as annual fees and even hidden fees. Unless you feel the need to support the credit card companies, you should do everything you can to make sure they don't make their money off of you.
(See below for more information.)

• What is the interest rate charged?
  
  
• Is the interest rate fixed or variable?
  
  
• What are the additional fees and charges (such as annual fees)?
  
  
• Grace periods - does the company offer a grace period that allows you to avoid any finance charge by paying your balance in full before the due date?
  
  
• Live within your means - don't spend more than you earn.
  
  
• Avoid impulse purchases - you will thank yourself at the end of the month!
  
  
• Do not carry a balance and avoid paying any interest charges - this is one of the most important things you can do to help your financial picture stay "rosy".
  
  
• Do not have multiple credit cards if you don't need them - the temptations can be just too great.
  
  
• Refrain from having your limit increased. Although tempting, this is one of the easiest ways to fall prey to credit card debt.
  
  
• Make sure that your credit statement and report is accurate - read your statement and understand your statement. If you see something you do not understand on your statement - call your credit card company and have them explain it to you.
  
  
• If you are carrying balances on several cards - use the credit cards with lower interest rates and fees to help pay off the higher rate credit cards.
  
  
• Beware cash advance fees.
  
  
• Ask for a lower interest rate - it never hurts to ask!
  
  
• Research "theft" insurance and fraud protection if offered. Make sure that it is genuine.
  
  
• Read the fine print to make sure that you are not paying unnecessary fees.
  
  
• Never carry a balance - this was mentioned earlier - it is worth repeating.
  
  
• Prepay on your credit cards so that you have a positive balance. This is a great idea if you are thinking about going on a vacation. But remember, you are not paid interest on money that you have pre-paid so don't do it too far in advance.

Managing your credit cards is not always easy. Following the above suggestions and points can help you maintain a positive credit rating and increase your FICO score. Credit cards, when managed properly, are a vital, almost essential, part of today's world that can make your life easier. Managing your credit cards wisely is one of the nicest things you can do for yourself and your family.