Credit don'ts?

[elevatethis]

1. When is the right time to cancel a credit card if you are not using it? I heard if you cancel it will hurt you!

I don't know if it hurts you directly, but I do know that the total amount of available, unutilized credit can affect your ability to get additional lines of credit. Freakie Ed explained it better above.

2. Whats the best way to pay a card? For example, if i buy gas with my visa card and i spend 30$, when the bill comes should i pay it all off, or just half, or what?

In full, every month. Paying interest on a credit card is literally flushing money down the toilet.

3. I really just use cards for emergencies now. how many cards should one really have?

Your credit score takes a small hit every time you apply for new credit. Having multiple cards is probably not the best idea for most people...choose one or two...I have one with a low limit/low interest rate for everyday type stuff and another with rewards/cash back set up for bigger purchases.

4. Is there anyway to build credit without using credit cards, or will you always need to use them?

Auto loans, students loans, etc, are all things that will build your credit if you pay consistantly and on-time. Credit cards help too but aren't necessary. I still think its a good idea to use them if you can manage it - getting a card that pays cash back for things you would have bought anyway is free money.

5. Any other tips?

Don't charge anything that you eat, drink, or burn. Things like groceries, restaurant meals, alcohol, cigarettes, gas....nothing sucks more than having a huge bill for a bunch of stuff that you have nothing to show for.