1. Avoid the need for status to overcome your common sense. It is very easy to succumb to temptations of having what the "Jones's" have. It is nice to be able to say you have that big screen T.V. with all the technological advantages offered today, but it all comes with a big price tag. Is it really necessary and affordable? How much debt do you have to go into to get these technical marvels? Consider how much interest you will be paying out by buying it on credit. Calculate the bottom line, which includes the price of the object plus the interest you will have paid when you finish paying off the item. Is it really worth that dollar amount? If you add enough items purchased on credit, will you be able to afford all the monthly payments on top of your usual monthly expenses like mortgage, water, telephone, etc? Wouldn't it be better to put aside an amount each month until you have the money to pay for each item outright?

2. Avoid raising the limits on your credit cards. If your limits are raised, this increases the temptation to buy more. Credit card companies often notify you that they are raising your credit card limit in advance. You simply need to call or write to them and refuse the increase.

3. Avoid co-signing loans for someone else. Co-signing for another person's loan can be risky in that if they default on the loan, you are the one responsible for repayment. Then if you cannot pay it reflects on your credit rating.

4. Try to pay more than the minimum requested payment on your credit cards. It is easy to be tempted to just pay the minimum payment, but this will stretch out the length of time to pay off the balance because you will be paying only the interest and not the principal amount charged. You do not want to still be paying off the item even after it has long been discarded.

5. Before getting any credit card, make sure you know what the rate of interest charged on purchased items will be and what the annual fees are. Rates can vary widely among cards. If you must have a credit card, shop around for the one with the lowest rates.

6. Use credit cards only for emergency purposes.

7. If you do find yourself in a situation where your payments become unmanageable, consider taking out a debt consolidation loan. Many banks and financial institutions offer these loans to help you get back on track. What happens in this case is that the lender pays off all your existing creditors and combines the balance amounts into one payment, which results in you having a lower monthly payment.

8. If your personal status changes, let your lender know. In other words, if you and your spouse divorce you are partially responsible for any debt that you have accumulated together. It is not wise to let your responsibility for these loans affect your credit rating.

Your good credit standing can affect the rest of your life. It can affect you in being able to get a mortgage to buy that house you have dreamed of or the car you have always wanted. It can also affect your marriage in that money worries are the cause of many marriage break-ups. Using the above tips, learn to control your credit rating wisely.