1. Always Pay on Time – Late payments are what can sink us where credit cards are concerned. Not only do any late payments go on your credit record, they also result in finance charges and an increase in your interest rate. Know this: credit card companies can be quick to raise those rates if you are late, so always pay at least your minimum each month.

2. Don't Possess Too Many Cards – Realistically, you only need one major credit card. However, you may wish to have an additional card, such as one that is specific to a department store. Be sure to limit the amount of cards in your name, however, as this will expose you to more debt.

3. Try Not to Carry a Balance – While this may not always be realistic, you should ideally be paying off your credit card balance each month. When you don't carry a balance, you don't lose money to those pesky interest rates. It also looks quite good on your credit history each time you charge a balance and pay it off in full.

4. Use Discretion – While charging items and paying them off is a great way to establish good credit, it can also be an unnecessary way to spend your money. Don't arbitrarily buy things for the express purpose of boosting your credit history. Before you buy something with a credit card, ask yourself if it is something you really need.

5. Avoid Joint Accounts – Unless you are married and both of you are building credit together, joint accounts are often a bad idea. Opening a credit card with a friend or business associate can end badly if one doesn't honor his or her side of the agreement. Remember, it is your credit history that you are trying to establish.

By-line:

Heather Johnson is an industry critic, as well as a regular contributor on the subject of airline mile cards. She invites your questions, comments and freelancing job inquiries at her email address: heatherjohnson2323@gmail.com.

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