Credit is not free, so check the fine print on credit card contracts. Even if the initial offer is a zero or very low percentage interest rate, the rate may change when the promotional period ends. Make sure you understand what the new interest rate will be. Also try to find a credit card company that does not charge an annual fee. If there is an annual fee, call the issuing company to see if it can be waived. Be sure to carefully evaluate credit cards that offer airline miles or other incentives. Often, these cards charge higher interest rates and annual fees.

Don’t look at your credit card as a means of financial freedom. If you can’t afford to pay cash for an item, then don’t use a credit card. Think of a credit card as a short-term loan that needs to be paid back in 30 days or less. To use credit wisely, pay off the balance in full every month. Doing so allows you to keep your money earning interest longer, assuming you have an interest-bearing checking or savings account.

Some cards are designed to encourage on-time payments. Discover’s Motiva card, for example, pays you money back for paying on time. Plus, like other Discover cards, it gives you a cash-back bonus on your purchases.

Although establishing a good credit history is important, you don’t need to begin with a national credit card if you feel the temptation is too great to charge more than you can afford. Another way to establish credit is to begin with a single-store credit card or a single-purpose credit card, such as a gas card. Using these cards responsibly by making occasional purchases and paying your bill in full every month demonstrates your ability to use credit wisely.