The overwhelming majority of us would rather not be without our credit cards. It is not so much that they are difficult to acquire any more, but they used to be and we still feel pleased about having them. They are also very helpful of course - it is like having an ATM in your pocket, to which thieves and muggers have no access.

However, what about if you already have two or three cards that are maxed out? Is the offer of a new card so welcome then? It is a thorny question. On the face of it, we all know that the correct reply ought to be 'no'.

However it is not always that straightforward, is it? After having enjoyed the convenience of credit cards, it is a nasty blow to have them impounded.

There can also be good factors for wanting a new credit card. What if the new card accepts balance transfers at an APR of zero percent for six months? That could save you a lot of money if you are currently paying 20% on the total debt.

In fact, if you exercised absolute abstention from using the card recklessly for six months, you may be able to rescue your good name from immanent tarnishing, because when you start missing payments or are late a few times, that could affect your credit rating and the poorer your credit rating, the higher the APR you will have to meet in the future.

It is a real pity that people, especially young individuals, are not shown that one's credit rating is a very valuable asset in its own right. If you watch over, cultivate and take care of your credit rating from your first loan, you will be able to borrow a fortune in later years at the very best interest rate on the strength of your credit history.

There are several easy steps to doing this.

The first is always pay off your loans and never be late for or forget a payment. If you can see this happening due to an event beyond - really beyond - your control, warn the credit card company.

Secondly, use your credit card to buy everything, especially the large, one-off purchases, but pay the card off before the end of the month when the first payment becomes due. In other words, only use the card for a free temporary loan.

Thirdly, when you have been using these tactics for a year or two make a point of asking for a rise in your credit limit each year.

Fourthly, stay on the look out for great offers, but keep in mind that these offers are just for suckers. Use them to play the banks at their own game. Transfer balances to the lower APR cards if you are going to carry a balance. If you buy a car on the credit card, get a better loan to pay off the card, before you have to pay them interest at a higher rate,

Build up your credit rating as you would your personal reputation and you will find that it pays dividends all the way through your life.