Remember the first time you got a credit card? It was this magic piece of plastic that could buy me anything I wanted! Not until I got my next paycheck, working for minimum wage, did it hit me that this was REAL MONEY here, not just numbers on a screen. Credit can be a great asset in our lives but how do we make sure we use it wisely?

Some say it is better to have multiple lines of credit. While this can be a good thing, we should be careful not to let ourselves get out of hand. For some it is tempting to open a plethora of credit lines and let the debt float around from one to another. Recent studies show that the average number of credit cards is an alarming ELEVEN. Having multiple lines of credit can boost your credit score, but it’s best not to let them get out of hand.

If you’re going to have multiple credit cards, make sure they are legitimate providers such as American Express, Visa, Mastercard and Discover. We all know how tempting it is when your favorite clothing store offers you 15% off if you open a credit card with them. You think, “I’ll just do it for the discount. I’ll never even use it!” Thinking like this, however, is playing with financial fire.

It is a good idea to establish long lasting credit lines. If you get a new credit card and are considering throwing your old one away, think twice about it. It will benefit your credit score to keep the old one and use it every so often.

Credit cards can be a great benefit in our lives, as long as we use them correctly. By maintaining a manageable number of credible credit lines, we can stay on top of debt and avoid the anxiety that it brings.