Some debt advisers also warn not to close too many cards at once. It will cause your debt-to-credit ratio to fall. For example. if you have $10,000 of potential credit and a $5,000 balance, you are using 50 percent of your potential. If you shut down a card with a $2,500 balance quickly thereafter, you will have $5,000 of debt and only $7,500 of potential, upping your ratio to 67 percent.

"It's a tricky business, but creditors don't care, because they know you need credit. If you are a good, money-conscious consumer who pays for everything in cash, basically you are dead to them. So establishing and using credit wisely is so important," says Rhode. "I'm a huge fan of credit cards -- used appropriately, a credit card is a safe way to buy goods -- the money is not taken out of your account before you get to dispute the charge. Other forms of payment have less protection."

Williams agrees.

"Credit cards are great because they offer you so much protection against fraud that checks and cash can't guarantee, especially when it comes to return policies or fraudulent purchases," she says.

Credit card advice
If you have a credit card, you have a credit history. So, the first thing you should do is obtain a copy of your credit report, review it for inaccuracies, correct any problems, and then slowly close unused accounts -- trying to close one per month.

Not having a lot of credit cards decreases your worry of late fees -- it is easier to remember your payment dates. "Someone with 15 or more cards probably has a difficult time remembering when all of them are due," says Rhode.

Having more credit and more credit cards does not necessarily make a good rating. The key factors are job stability, paying as agreed and paying on time. Keeping up with payments will build a better credit rating than will going out and opening numerous credit card accounts.

You need to be aware of the terms on your credit card, because those terms dictate your agreement with the creditor. You need to ask about the interest rate and what penalties are attached to the card. You can search Bankrate's credit card database to find the right one for you.

Also, don't close your oldest accounts if you find a better card. "If you close a card you opened in college 10 years ago because you found a better card, creditors will penalize you, because they are looking for a lengthy and successful credit history," says Joyce Murray of Money Management Internal.

According to Experian, one of the three major credit reporting agencies, there's no right number of credit cards for everyone. It depends on how much you spend and how much you can pay off. However, what you can afford at present may change now that most credit cards are increasing their minimum payments.

Just remember that the street of credit fairness runs only one way, and it's in the favor of the creditors. Credit card companies can change interest rates at any time. The most important thing to remember is that you are responsible to keep up with your bills and stay on top of your credit.