Read Terms Carefully

• One of the most important things you can do when using credit at a bank is to read the terms of the credit agreement carefully before agreeing to the contract. Credit cards and other credit accounts can carry very high interest rates, which can make credit expensive to use. Credit cards are often subject to a variety of fees that can be levied if you are not careful about how you use the cards.
  
  

Don't Spend What You Don't Have

• Perhaps the most dangerous aspect of using credit is that it enables consumers to spend money that they don't have. Every time you use credit, you are essentially taking out a small loan. Credit can be a convenient way to pay for goods and services without carrying cash, but if you use credit and do not have the resources to pay off the balances you accumulate, you will have to pay interest on the balance. Paying off your credit balance in full each month will allow you to avoid interest.
  
  

Prioritize Accounts

• A single consumer can have several different credit accounts at several different banks. If you have credit balances at several different banks, you should prioritize your credit accounts strategically to minimize the amount of interest you will pay. Pay the minimum required payments on all of your credit accounts except the account with the highest interest rate. Pay off the balance of the account with the highest rate as quickly as possible, and then move on to the account with the next highest rate.
  
  

Considerations

• If you don't pay credit balances immediately, using credit will cost you money in the form of interest. If you are an impulsive spender, you may benefit from avoiding credit completely, as it will prevent you from accruing burdensome credit balances. Instead, withdraw cash to spend when you go shopping or make purchases with a checking account.