Using a Credit Card Wisely

The freedom a credit card offers may be exciting at first, but it's important to take the responsibility of credit seriously. Using your card wisely may help you stay out of credit trouble and avoid getting into debt. The first step is matching your spending style to what you can afford to repay when the bill arrives or within a few months.

To avoid overspending, it's always recommended that you create a budget for your household, and keep your spending in those guidelines. If you're unsure if or when you'll have the money to pay off a purchase you need to put on a credit card, it's probably safest not to make that purchase.

Write it down

You should save your credit card receipts and write down how much you've spent, so that your monthly bill isn't a big surprise. Tracking your spending will also help prevent you from going over your credit limit, which can incur hefty fees.

Billing mistakes

In Case of Errors or Questions About Your Bill

If you think your bill is wrong, or if you need more information about a transaction on your bill, write your lender on a separate sheet of paper at the address listed on your bill as soon as possible.  Your lender must hear from you no later than 60 days after they sent you the first bill on which the error or problem appeared.  You can telephone them, but doing so will not preserve your rights.

Be sure to include the following information in your letter:

• Your name and account number
• The dollar amount of the suspected error
• Describe the error and explain, if you can, why you believe there is an error
• If you need more information, describe the item of which you are unsure

Your Rights and Their Responsibilities After They Receive Your Written Notice

The lender must acknowledge your letter within 30 days, unless they have corrected the error by then.   Within 90 days, the lender must either correct the error or explain why they believe the bill was correct.