There is a big lack of knowledge when it comes to credit. In my experience, the most important thing about credit is to make sure all of your creditors are paid in full and on time. If you cannot pay in full, at least make sure that you are making your minimum payments.

Another concern of mine is why do people have 12 different credit cards, 4 different lines of credits and loans? I recommend to work with one main financial institution: to have one primary credit card and one back up credit card in case of emergency.

When someone has too much access to credit it is not a good sign to anyone who is analyzing your credit history. Having too much credit is considered a risk to financial institutions, not to mention to landlords, car dealerships and every other business out there that offers financing as a means of payment.

Most people don’t have to worry about their credit. As long as your bills are being paid in full and on time, you do not need to run a report on your history. However, if you feel that you need to see where your credit stands, it’s a good idea to run a report to prevent future problems.

There is such a thing as having too much credit! Be sure to limit it to what you need, say a $5000 primary credit card, a $10,000 line of credit and a back up credit card of $1,000. Depending on your yearly income, these values may be different to you.

An example: if your yearly gross salary is about 32,000$, then having a primary credit card at 10,000$, a secondary at 1,000$ and a line of credit at 10,000$ is perfect. As always, talk to your financial adviser if you are unsure about your credit and its history.