• Avoid the trap of overspending with your credit card.credit card detail image by gajatz from Fotolia.com
  
  Credit cards offer convenience, fraud protection and other features. When mishandled, credit cards can lead to overwhelming debts, high monthly payments, a bad credit history and other financial difficulties. Carefully select a credit card and then use your Visa wisely in order to avoid the pitfalls that commonly accompany credit cards.
  
  

Research Credit Cards

• Read credit card offers thoroughly before applying for a credit card. Compare the annual percentage rate, rewards, grace period, liability policy, fees and other terms and conditions of several cards before making your final selection. Many cards offer rewards and incentives for a limited time and enforce many restrictions. A credit card that offers rewards may not be advantageous if it comes along with a high interest rate or annual fee. Bank of America warns that frequently applying for new credit and having too many open credit card accounts may have a negative effect on your credit score. Choose one or two credit cards that suit your needs.
  
  

Maintain Good Credit

• Using a credit card responsibly will help you build credit history. To avoid paying unnecessary fees, pay at least the minimum amount due before the due date and do not exceed your credit limit. Notify the lending institution whenever you change your address, phone number, email or other contact information to ensure you receive statements in a timely manner. Verify a merchant is reputable before providing your credit card information online, over the phone or in the mail. Check your credit report periodically to ensure that the information accurately reflects your credit history.
  
  

Know Your Rights

• Read each statement carefully and confirm that the charges are correct. Report a lost or stolen credit card immediately. Under Visa's "100 percent zero liability policy", you are not responsible for unauthorized charges as long as you report them promptly. If a product or service is unsatisfactory and you cannot resolve the issue with the merchant, contact custom service and you may not be responsible for the charges.
  
  

Limit Spending

• According to Visa, paying with a credit card makes it easier to spend beyond your means. Before using a credit card, remember that you must pay off the total account balance each month to avoid finance charges. If the entire balance is not paid within the grace period, you may pay much more for items that you realize.
  
  Practical Money Skills recommends the "20-10 rule". Excluding mortgages, the total amount borrowed on all credit accounts and loans should be less than 20 percent of your annual net income. Less that 10 percent of your monthly net income should go towards credit card and loan payments. Bank of America recommends paying the full balance each month to keep your debt-to-credit limit low. Carrying an unpaid balance on a credit card does not improve your credit score.