If you are like many people who are relying more on credit cards in the down economy, be sure to remember the basic rules of credit card use, and be aware of the changing credit card landscape.

By following key guidelines and adjusting your credit card behavior, you will be able to maintain good credit now and continue building credit for the future, when you may need it most!

1. Be aware of and respond to the changing credit card environment

Lately, creditors have been more selective about issuing credit cards due to stricter requirements such as higher credit scores to approve applications, reducing credit lines and limits, and even closing inactive accounts, or accounts that have recently dropped in credit score. Whether you use your credit card for business or personal reasons, try to:

Avoid changing your payment patterns, such as:

• Paying less than the full balance when you have always paid-in-full
• Suddenly maxing-out your credit card
• Charging necessities like utility bills to credit card that you did not charge to your credit card before
• Using cards that have been inactive

In addition, look out for any changes in terms and conditions in your credit card agreement.

2. Pay off your balances

Make a solid effort to pay off your balance in full and on time every month. Otherwise you will have to pay interest and fees on the remaining balance.

If you cannot pay the full balance

• Pay back as much as you can, and more than the minimum payment.
• This will lower the amount you are being charged in interest and fees.

3. Don't max out your credit cards

Never charge more than 50 percent of the limit on your credit card. If you exceed 50 percent, your credit score will go down. A lower credit score subjects you to higher rates and fees and will makes it more difficult to access affordable credit in the future.

• It is better to have a couple of credit cards that have a smaller balance than one maxed-out card. Since we don't know when the economy will recover completely, it is always a good idea to have a few options for financing in the future.

4. Be Proactive

• Find out how you're doing: Being informed about how your credit is doing is a good first step towards achieving good credit. You can request one free credit report per year from each of the three credit reporting agencies (refer to our credit repair tip sheet for more information).
• Don't be afraid to ask for more time if you need it: If you think you will be late on a payment, simply call your creditor and ask for an extension. If they grant it to you, you can avoid having a missed payment recorded on your credit history. Also, make sure that you understand the terms of your credit card, especially if you think you will be using it more in the next couple of years.

5. Try to Save

Saving and using credit cards are closely linked.

• Reduce your dependance on credit cards by reducing your expenses. Make a personal budget with your daily and monthly expenses to see what expenses you can decrease.
• With current higher energy costs, it is helpful to turn down the thermostat, and try to look for free energy audits and energy-saving programs from your state website.
• You can cut spending by investing in cash-back rewards cards. Many of these cards offer up to 5% cash-back on those items whose prices are rising in this economy, such as food and gas.

6. Practice Sound Judgement

Have a sense of where you want to be in the near future.

• Never purchase something with a credit card that you know you cannot payback within six months to a year.
• In this economy, it may seem easier to finance your long-term expenses with a credit card, but try to think short-term instead.