MyCardBlog

Used wisely, credit cards can help you make the most of your financial resources. You can use cards to make some purchases more easily and securely — like travel reservations or concert tickets — and they can even help you budget and save. But to enjoy these benefits, you need to choose a card that’s right for you, and use it carefully.

The right credit card
To find the best card for you at the lowest cost, you need to consider these three major factors: Interest rate, Grace period and Annual fee. But for most of us, I think the top factor is sign-up bonus and other 0% APR on purchase and BT offers.
Not all cards charge an annual fee, so you may be able to avoid that cost entirely. But be sure to read the fine print: Some no-fee cards start charging a fee after the first few months. (Of course, you can choose to cancel it.)

A card’s grace period and interest rate probably have the greatest effect on the cost of credit. A grace period is the number of days before a company starts charging interest on new purchases. If there’s no balance due on your card, no interest will be charged from the statement closing date through the day payment is due. But if there’s a balance, the grace period is eliminated. And some cards have no grace period, which means interest starts being charged on that purchase immediately. (You should also be aware that some cards may charge interest on new purchases.)
If you pay your bill in full every month, having a grace period may mean you never pay interest. And the longer that period is, the easier it may be to pay in full each time. But if you regularly carry a balance, finding a card with a lower interest rate will be more important to you than finding one with a long grace period.
Affinity cards
You might also be tempted by affinity cards: cards that give you travel miles, cash back, discounts or make charitable donations to a favorite cause. Before signing up for one, be sure it fits your credit needs first-and that the interest and fees won’t outweigh the potential benefits. You might also want to calculate how much you’ll have to spend to actually qualify for a free airline ticket or other reward.
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. (I doubt about this. You’d better continue to pay the disputed charges and then wait for refund as Linglin said.)
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.
I remember someone was charged late fee by AMEX and did nothing but waited. Then AMEX transferred the finance charge to a collection agency. There is a collection on his credit report. Following is what I wrote to him: “But you should learn a lesson from this case, when you owe some money (actually not) on your credit card. You should pay it before due date. At the same time, you should try your best to dispute with Credit Card Company. Then they will refund credit to your account after they finish the dispute. Don’t leave it away and do nothing. All the credit card companies have well-developed rules. You might not understand, but it a rule. Be careful next time and good luck this time.”
Limit your credit
You may find it easier to control your spending if you limit yourself to having just a few credit cards, and don’t carry them with you all the time. The fewer cards you have in your pocket, the less likely you may be to buy something on impulse.