While credit cards may be incredibly useful when it comes to paying for one-off items or big spends, it's not always the best idea.
What many people tend to ignore when using these handy pieces of plastic is that one day, you will actually have to pay this money back.
That's not all, they can have a significant impact on your future as well.
The difference between a good and bad credit score could be the deciding factor when it comes to mortgages, loans or even getting job.
Under 30s are the biggest culprits when it comes to being unaware of their finances.
Amazingly a research by My Credit Monitor found that a staggering 75% of under 30s have no idea what their credit score is before they get their first credit card.
That doesn't stop nearly a fifth of them then using their credit card to pay for a holiday.
But it's not all's well that ends well because over 20% had to move back in with their parents while they cleared their debts.
So take a look at these handy tips from My Credit Monitor and do your credit rating a favour!
- Register to vote!
- Close any inactive bank accounts you may still have
- See if your lender will do a soft search initially that won't have an effect on your credit score. Hard credit checks can give a bad impression if they are done multiple times
-Do your homework - don't be apply for every offer you are sent, or use the most obvious provider in the market. Just because they're sending you information it doesn't mean they will accept you.
- Don't assume small debts are a small problem. If you have shown you can't hand small amounts of credit it can be just as damaging.
- Don't assume the banks and credit agencies always get it right. Make sure they haven't made any mistakes you on credit report regularly.
-It's not just loans and credit cards: energy, and broadband providers, for example, can also contribute info to your credit report.
How credit savvy are you? Take the quiz on My Credit Monitor to find out how you're getting on.