Credit card companies are in business to make a profit, and it appears they are doing a bang-up job, given recent information from RAM Research Group that says card companies earned profits of more than $40.3 billion in 2007.

If you have a credit card, you have chosen to participate in a kind of competition. That's OK, provided you know the rules of the game and you're aware of your opponent's strategy.

The goal of your opponent is to develop you into a "revolver," or one who carries a balance from month to month. Credit card companies reluctantly tolerate those of us they call "deadbeats" -- cardholders who always pay their balances in full and do not pay interest and fees. They hope that if we keep playing the game, eventually we'll trip up and turn into revolvers, too.

If your win-loss record in the credit card game is embarrassingly pathetic, it might be because -- forgive me for saying this -- you are ignorant. I want to help you learn how to play the game and get into shape so you can even the score.

--Know the rules. Every credit card account has a specific set of rules about late fees, over-the-limit fees, grace periods, billing methods, cash advances and so on. You can read them on the back of your monthly statement. Look for small print and pale ink.

If some rule is not disclosed on the statement, call customer service. Don't be embarrassed to ask simple questions, and don't hang up until you are satisfied. Read your statement very carefully every month because the law allows your opponent to change the rules. Scrutinize every square millimeter, and question anything you do not understand.

--Stop fantasizing. Your credit card company doesn't care about you. They want to win the game. When they increase your credit limit, it's not because you have achieved something noteworthy. They believe you respond well to flattery, and they know how to pour it on. They want you to build your balance and pay only the minimum.

--Don't be late. Always use the pre-printed envelope provided in your statement, and do not add staples, paper clips or sticky notes. That will cause your payment to be put into a special pile where it will be processed manually. You do not want that. If you have a message to convey, call customer service.

Take Capital One, for example. The Virginia-based credit card issuer sorts and processes up to 600,000 customer payments each day. That takes 300 employees and lots of machines. It's not someone with a letter opener.

--Pay early. If you carry a balance, making your monthly payment early in the billing cycle will save you money. Most credit card issuers use the average daily balance method to figure monthly interest or finance charges. If you make your monthly payment early, you reduce the daily balance for more days in that cycle.

If you master the rules of the game, you are bound to come out ahead in the end.

Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
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