The best way to maintain a good credit rating is to pay your bills on time and not carry an unreasonable level of debt.

If you have several credit cards with balances, transfer as much as you can to your lowest interest rate card and close the accounts you do not use. If you have cash in the bank earning minimum interest, use it to lower your debt.

If you have equity in your home consider a home equity loan to pay off credit cards, and write off the interest on your taxes. This will enable you to consolidate your bills, streamline the payment process, better track your spending and reduce the number of open lines of credit on your credit report.

Even if you don't have a poor credit history, it's a good idea to conduct your own credit check-up, especially if you're planning a major purchase such as a home or car. Checking in advance on the accuracy of your credit report could speed the credit-granting process.

The bottom line is that you control your credit, including how to use it … or how you abuse it. Use good judgment, don't overspend and do your homework. Always seek advice before you overextend yourself. Good counsel can help prevent bad decisions.

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