Most credit cards will let you change your due date to a more convenient date. Call your credit card company’s customer service line and ask to speak with a representative. When all your credit cards are due on the same day, it will also be easier to keep track of your monthly expenses.

Consumer credit can cost you

This is especially true with credit cards. Credit cards are an unsecured form of credit that can often carry interest rates of over 10%. Whenever you use a credit card, you are borrowing money and you are obliged to repay back the amount you spent. Credit card issuers will require you to pay back the original amount you borrowed plus any interest, charges, and fees.

Before you borrow money, it is important to understand the cost of borrowing. Do the math! For example, if you charge $5,000 and your APR is 15%, you will be have to pay approximately $750 in interest a year. The longer it takes you to repay the loan, the higher the amount you end up paying back. In addition, if your monthly payments do not exceed your monthly purchases plus the interest charge, the amount you owe will grow over time. Try using an online calculator to calculate the cost of carrying a balance over time.

Run a balanced budget

The best way to build a solid financial foundation is to stay focused, organized, and make decisions based on your financial objectives. First, keep track of your monthly expenses. Keep all your pay stubs, bank statements, credit card statements, utility bills and purchase receipts. Second, define your goals. At the end of the month, add up all your monthly expenses and compare the total amount to your income. If your expenses exceeded your income, you may need to make some adjustments. Look for ways to increase your income or reduce your expenses. Finally, establish a savings account and determine a fixed amount of your paycheck that you can allocate to saving every month. If you carry a credit card balance, make a plan to pay it off over time!

Analyze your bank statements

Do not throw away your purchase receipts. You can create an excel spreadsheet on which to record all your receipts, to help keep them organized. At the end of the month, double-check all check, bank, and credit card charges. If you find errors or discrepancies, notify your bank immediately. Read all notices sent by your credit card company. Credit card companies have to notify you of any changes in your credit card terms. If this happens, contact your credit card company and ask for an explanation. If your APR is increased and you carry a balance, consider switching to a new credit card with a lower APR.

Do not use your credit card for cash advances

Cash advances are not a good deal for you. They tend to carry a much higher APR than your APR on purchases.

Schedule your monthly payment online

Avoid late payments. Paying your credit card late will hurt your credit score. Schedule a recurring payment online every month that will cover your minimum payment. This way, if you forget to pay your bill ontime, your credit card company will withdraw the money automatically from your bank account. If you use multiple credit cards and they have different payment due dates, you can call each company and ask them to move your billing cycle to end at the end of the month so you only have to remember one payment date.

Monitor your credit score periodically

Everyone is entitled to a free annual credit report. Use this to check your credit history for errors and discrepancies. Even if you do not plan to apply for a new loan, you want to make sure that your record is accurate and you are not a victim of identity theft. Checking your credit report will NOT result in a lower score.

Do not let others to use your credit

Be a responsible adult by not letting others abuse your credit history. Do not sign up as a cosigner on a loan unless you are prepared to face the possibility that the person my default on their loan.

Watch out for department store credit card promotions

Many of the credit cards offered in department stores carry a higher APR. If you opt to open an account with a department store to take advantage of a discount, do not use the credit card to carry a balance. And, of course, even moreso than with a regular card (with a lower APR), do not charge more than you can afford to pay off.

Pay attention when you receive a credit card offer

Understand all interest rates, fees and charges before signing up for a new credit card. The less annual fee, the better. Often, you will not know what your APR will be until after you are approved for the new credit card. If you do not like the APR you get, cancel the credit card before you use it.

Use only one credit card for purchases

If you have multiple credit cards, use only one credit card for purchases. Avoid accumulating a balance on more than one credit card. If you transfer a balance to a lower APR credit card, use only the new credit card and remove the old one from your wallet and online accounts.

“Most major issuers, including Chase, Bank of America, American Express and Citibank have been slashing credit lines and closing the accounts of those who don’t spend on their card regularly. While these issuers are required to notify you in writing of an account closing, there’s no requirement that they do so in advance. Even when they do give early notice, the only way a cardholder can stop their account from getting shut down is to start spending again.”

The author correctly points out that this could adversely affect consumers’ credit scores across the board. When a credit card company closes an inactive account, the account owner’s ratio of debt to available credit falls. According to FICO, a consumer with a 720 credit score is likely to drop to somewhere in the 600s.