Credit cards are useful financial tools and like any tool, they need to be effectively managed. Learning to use a credit card responsibly is an important step in developing financial common sense.

Here are 5 basic credit card tips. There are many others, I'm sure, but this is a good starting point!

1. Treat your card like a debit card. Your credit card is not "extra money". It is a loan that has to be repaid. So, don't spend money you don't have.

2. Don't sign up for cards you don't need. If you get unsolicited card offers, don't sign up for that card. You probably don't need it -- which is why you didn't seek out the credit card company yourself.

3. If you use credit cards, pay them off each month. Carrying a balance on your card can add up to hundreds of dollars each year in interest.

4. Don't use credit cards for groceries. Buying things like groceries with a credit card unless you pay it off each month is a no-win situation. Recurring items like groceries will only tend to increase your credit card each month.

5. Pay your card on time. Late card companies can charge huge fees for paying late.

Credit cards are certainly "OK" when used wisely. Also, some things, like on-line purchases or renting a car, require a major credit card.