Credit bureaus never forget. They maintain records on you that other companies rely on to determine your creditworthiness. With too many idle credit cards lying around (each with its own allowable credit) you could be "maxing out" your total credit limit without spending a dime.

Unfortunately, you may not find out you're considered a bad credit risk until you apply for a loan or another credit card and your request is denied. American Express recommends the following simple steps to becoming a credit-savvy consumer.

1. Keep only the cards you actually use. How many cards are too many? That depends on your lifestyle and spending habits.

   A good rule of thumb is to keep only the cards that you use on a regular basis. But don't just discard the others. Write each credit card company first to officially cancel your accounts, then cut up the cards and throw them away.

   Consolidating your spending on just a few cards may help you qualify for more credit, and can also help you get the most out of rewards programs. Card rewards can help you earn points toward everything from frequent flyer miles to a new stereo, a dream vacation and more.

2. Know your credit history. Don't wait until you've been turned down for a loan to find out if your credit is in good standing. American Express suggests you request a copy of your credit report from the three major credit bureaus every year or two. You may be charged a nominal fee, but it's worth it. And if you've been denied credit, you're entitled to a free credit report within 60 days.

3. If you're married, give yourself credit. Not because you've made it to the altar, but because it's vital to maintain an independent credit history. If you hold joint accounts with your spouse, keep at least one card in your own name. Women who enter divorce or widowhood without a shred of personal credit are adding unnecessarily to their burdens.

4. Think "cents" and sensibility. It makes good sense to apply for only the credit you need. Also, keep the number of inquiries on your credit record down to six during a six-month period. Lenders may think you're in over your head if you request too much credit at one time.

   "Also, once you've established credit, try to always pay more than the minimum. Otherwise, you'll get nowhere in terms of paying off your balance," advises Al Kelly, Jr., General Manager at American Express. "It's also best to pay on time. Too many late payments taint an otherwise impeccable record."

5. If times are tough, let your credit card company know. Even the most credit-aware consumers have trouble paying their bills from time to time. If so, your best bet is to call your credit card company to let them know what's going on. They may be willing to work out a payment plan with you.

A final reminder: consolidate, consolidate, consolidate! Becoming a credit-savvy consumer begins with limiting your spending to only those cards that you use most often. Following this advice helps establish you as a good customer, and can help you get better interest rates and rewards.(NAPSI)