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

If you notice a mistake on your bill, by law you have 60 days to notify the lender about the error — whether it's an unauthorized charge, an incorrect payment, or a computer mistake. Your lender must acknowledge your notification in 30 days, and must resolve your issue within up to two billing cycles, but not more than 90 days.

You can still use your card while you're disputing a charge, as long as you pay the rest of your bill. You will not have to pay for those purchases or charges you are disputing, but you will have to continue to pay undisputed charges or new charges made after your dispute is filed. The law that protects your rights when it comes to billing mistakes is the Fair Credit Billing Act.