When used irresponsibly, a credit card can have long lasting negative consequences on your financial future.  A credit card, if used wisely, can be an indispensable financial tool.  It's all up to you.

* Consider using a debit card instead of a credit card.  A debit card accesses funds on deposit; it can be used like a credit card without the potential damage.  A debit card won’t allow you to spend money you don’t have.

* Avoid cards with annual fees.  The majority of credit cards no longer charge an annual fee.

* Read and understand all of the terms of the credit card agreement, including the fine print.  Make sure you understand all of the fees.  Avoid cards with high or multiple fees.

* Avoid cards with an APR of 20% or more.  There are credit card offers with more reasonable rates.

* Pay off the balance every month.  If you are unable to do so, cut up the card.

* Stay within your credit limit.  If this is a problem, consider a credit card with a low limit of $500.

* Understand that the introductory rate is typically for six months or less, and some card issuers use it as a “bait and switch” technique.  The attractive introductory rate is often followed with an excessive rate after the introductory period is completed.

* Keep track of your bills and pay them on time.  The Universal Default Clause allows credit card companies to increase your interest rate if you are delinquent on any payment, even if you are up to date on your credit card.

* Pay your credit card bill well in advance of the due date, preferably when you get the statement. Waiting until the last minute invites a late payment fee.

* Remember that a poor credit record can affect your future employment, ability to get a car loan or a mortgage.

* Notify your credit card company of your new address as soon as possible.