5 C's of Credit
Personally I wouldn't bother or even dream about having a credit card. But you see there is something you do have to pay on margin. For example, A house mortgage is a huge purchase you will most likely make. So you'll have to get a loan which isn't bad.You just want to make sure you getting the best deal out of it and it is comfortable for your income and interest. Possibly the only time I would recommend a credit card is for an emergency.
Understanding how much credit you can afford because, credit cards are pretty much loans. And you shouldn't borrow more than 20% of your annual net income.
How to calculate: Lets say you earn $3000 a month after taxes 12 * $3000 = $36,000 So you calculate 20% of your annual net income to see your "safe debt load" $36,000 * 20% =7,200
Now, this means you shouldn't have more $7,200 of "debt outstanding"
and this does not include house mortgage but other payments should be included such as: car payments, students loans and credit card(s) if applied.