 TITLE: The Simple Guide to Using Credit Cards CONTENT: How to Use Your Credit Card Responsibly\n---------------------------------------\nIn the beginning, responsible credit card use can seem complicated, but it really isn't. Just follow this three-step plan:\n1.  **Only charge what you can (and will) repay in full.** Although you can pay over time, it's best to carry over no debt. This way you'll avoid interest charges, which can rack up before you know it. Interest on credit cards compounds, which means that it's assessed on balances that have already grown larger with the previous month's interest charges. Another benefit of maintaining a zero balance is that you won't have to face another debt payment the next month and you'll be spending within your means instead of beginning to accumulate debt.\n2.  **Don't take it to the limit.** Having access to a substantial amount of money is wonderful, but if you charge near or up to the limit, a credit scoring company may calculate your score before you make a payment. It will then appear as though you're highly indebted even if you planned to pay off the balance by the due date. When charging large sums, make several payments before the bill comes due (if you can't pay it in full immediately) to pay it down as quickly as possible.\n3.  **Pay on time.** Send every payment by or before the due date. Timely payments are listed on your credit reports, and this helps your credit scores. Alternatively, payments that are 30 days or more late will ding your scores, so it's important to always pay your bills on time. To simplify this task, set up automatic bill pay with your bank.\nKeep a close watch on your account by checking your account activity often and carefully. There's no need to wait for the statement to be issued at the end of the billing period. Check it daily or weekly on your computer or via the issuer's app on your mobile device. You'll prevent balance surprises, you can make a supplemental payment, and you will catch any problems early. END