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There are many different views about the proper way of managing credit. Because a higher credit score means getting easy approval and better rates from creditors, everybody wants to have excellent credit. Sadly, many consumers have a mistaken notion of how they can improve their credit and boost their credit score. Let's discuss the top ten managing your debt mistakes that must be avoided:

1. It's okay to be late as long as you pay it back. Your credit score also depends on how timely you are with your credit card payments. If you have charges in your account that are already overdue for more than 30 days, you'll be in big trouble.

2. Closing your old credit cards. Closing your old credit cards in exchange for new ones is like closing the foundation of your credit history. Instead of canceling your old credit cards, use it only once every few months for an inexpensive purchase to keep it from automatically closing out.

3. Not taking any credit at all. Taking out credit that you can afford to pay back each month is actually healthy because it builds up your credit history. Having no credit at all can be a drawback especially when the time comes that you would need to apply for a loan.

4. Submitting credit card applications to several credit card issuers at once. Creditors check on your credit history each time you send a credit application. Too many inquiries on your credit can hurt your credit status. Furthermore, when a creditor declines your application, you are immediately seen as high-risk borrower by other lenders.

5. Refusing to obtain a student credit card. A student credit card helps in establishing an early credit history which can be very advantageous in the future. Nevertheless, it is important to be particularly cautious on the use of a student credit card to avoid bad credit. As a parent, you can do a lot to help your child manage his finances efficiently and prepare them for the future.

6. Not getting your credit report from the three major credit bureaus. There are many agencies online that offer free credit report. However, it would be better to obtain your credit report from a credible source such as Experian, TransUnion, and Equifax. All consumers are entitled to a free credit report each year.

7. Trying to fix or lie about the details of your credit. This is a major mistake. Never try to create false information about your create as you will be facing legal action.

8. Applying for a credit limit that is too high. Having a large credit limit is great but only if you can afford it. Otherwise, you will be prone to spending more than what you can pay back and living beyond your means.

9. Not notifying your bank about your billing statements that never reach you. Your bank should be sending you a summary of your account each month to keep you updated. If you don't receive them from the mail, it is possible that you've already been a victim of identity theft. Thieves often call banks for a change of address to keep the account holder from knowing the true state of his account. Don't wait until creditors start calling you about unpaid charges you never made.

10. Paying only the minimum of your credit. Carrying over a balance for the next billing cycle isn't going to improve your credit score. On the contrary, you are putting yourself at risk of accumulating debts and getting charged with high interest.

Liz Roberts is a freelance writer and loan consultant. The website BadCreditResources.com offers resources that specialize in providing bad credit loans and bad credit cards.