After you've determined how much credit you can afford, follow these steps to manage it well:

• Know your loan's credit terms or the terms of your credit card agreement.
• Understand the terms of the agreement before you accept a loan or credit card.
• Set aside money each payday for emergencies.
• Set a monthly limit for charges and stick to it.
• Shop as carefully with credit as you do with cash.
• Don't take on more monthly credit payments than you can afford.
• Pay bills promptly to avoid penalties and to keep finance charges low.
• If you charge day-to-day expenses, make sure you pay down enough monthly to keep your debt or credit card from ballooning.
• Keep credit card information (including phone number of issuer) in a safe place in case your cards are lost or stolen.
• Keep copies of sales slips and compare charges when bills arrive. If there's a mistake, call your credit card company right away.