How much have you been whipping out the plastic lately?

I'll admit for me, it's been quite a bit in the last month.

Generally, I only use my card to cover gas, which runs me around $40 a fill up, but lately I have had to use my card for what I consider "inevitable debt".

For instance, about two weeks ago at the Graduation Celebration, I plunked down about $400 for invitations and a cap and gown. Last week, I spent $200 on car repairs. And I still had to get gas. It hasn't been pretty, but I have not had the cash to cover these expenses. This worries me because I don't want to have any debt when I move to DC in June (yep, stilll going!)

According to CNN.com, more college students are using their credit cards as a means of survival. The average freshman has $940 dollars in debt, and only 15% of college students have a zero balance on their credit cards. While there are several people in the hole, this does not make me feel better, or even comforted by my situation. I don't ever want to end up near that amount, although it seems that I am on my way :-( Friday I declared that I wasn't going to use my credit card until it was completely paid off - but that was before I drove home and ended up on an empty tank. Generally I am able to pay off $300 a month, but it is clear that I am going to have to work extra hours or sell my books early to accomplish this goal.

Here's to the (quickly approaching) future...

Credit Line Increase!

So, I hold two credit cards: one from Old Navy and one from Citi. The Citi card is the one I use the most, for gas and whatnot. The Old Navy Card I rarely use anymore, mostly because I'm never in that area. Today, I checked my account to make sure my online account payment had gone through, when I saw the button that said "Request A Credit Line Increase." I thought, "Hmm... maybe I will." It is a commonly circulated fact that if your credit line increases, your credit score goes up. However, that is only contingent on how much of the credit line you use. The lower your debt to credit line ratio is, the higher your credit score will be. Well, my credit card has never had more than oh, let's say $125 on it at any given time. When my original credit line was $500, that would have been 25%. When it increased to $800, it would have gone to 16%.

Long story short, I asked for - and was granted an increase - to $1100!

Yay!

I have read that your ration should be no higher than around 35%. But I am going to keep it as low low low as possible.

What about you? Have you ever asked for a credit line increase?

Financial New Year Resolution #2: Work On Your Credit

So, the next area of our financial lives that leaves the most impact is our credit. Credit is a lot like a GPA - you can bring it down in a matter of minutes and spend the entire remainder of your life building it back up. Establishing GOOD credit now sets us up for a sound financial future later. Credit is what helps to get a car, a house... anything linked to truth, basically. Now is the time to work on building up that score.

A couple of tips from my personal file:

My first credit car was (and I still have it) my Old Navy card. I had heard from others that it was a good idea to get a department store credit card first to establish good credit. I never charge more than $50 on it at a time, and the low balance makes it easy to pay off. Also, I get emails on sales and Bucks Back certificates every once in a while.

After about a year, I moved up to a real credit card. I went to citicards.com and filled out an evaluation to find out the best card for me. I chose a card that gives me cash back on every purchase. After I accumulate $50, I am eligible to get that money back.

On that note, I would like to give you a little advice:

- Pay your card off every month (if you can). If not, always pay more than the minimum. Paying your cards off helps to establish a solid score and makes you a good credit risk.

- Choose a card that benefits your lifestyle. If you are a jetsetter, find a card that gives you frequent flyer miles. Or, if you like having something to show for your purchases, the bucks back benefit is a great option.

- You really only need one card. Sure, a store card is nice, but nowadays, you can sign up on the store website for promotions and deals. Get one major card and stick with it.

For some "professional" advice, check out the Bank Rate site and find out which type of card is right for you.