"I think money was stolen from my card" or "I might have blocked my card in ATM" - these are frequent problems that bank customer-support officers usually hear from agitated clients. Incorrect use of credit cards or wrong interpretations of their functions are frequent even after tens of years of credit-card extensive use. Actually, there are 4 most frequent causes for problems; one is related to overspending, second is about missing money; this is usually connected to 3rd problem - unauthorized use and finally there is issue of forgotten information. All these problems are interconnected and can lead to serious financial problems. However, there are a few simple things that you can do in order to avoid hassle.

First and foremost, remember that your credit card has a limit. When you open a credit line you will be given a certain credit limit that can vary from twice your monthly income to 3 or maybe 4 times that income, depending on past credit history. However, do not spend more than you can pay back. At end of each month you will have to pay-back borrowed money and there will be no exceptions from rule. So lesson number one is “spend within limits”.

The second thing you need to do is keep a record of your expenditures. Keep bank statements, receipts and carbons in a safe place and at end of each month make a calculation of your deposits and withdrawals. If there is any discrepancy between two, make sure to contact your issuer bank immediately and solve situation. Most people find out that they have forgotten about a certain payment that was made with card, yet you may find out more important information than this.

This brings us to next issue - unauthorized use of credit cards. This is a wide problem mainly due to theft. It is safe to keep your credit cards in a wallet, separately from any other papers so that you do not lose cards; it is also recommended that you make sure there is no one watching over your shoulder when you type you personal identification number and off course there is rule of never giving out PIN to anybody. Unauthorized use is not only related to theft. Young children should never be given number and/or PIN of a credit card. If they are still not aware of value and importance of money you may find yourself paying for useless items or services. So rule no.2 is Never Give out Your PIN.

A credit report is basically a file about you kept by lenders and banks. As annoying as it may be, it's still perfectly legal for them to gather all sorts of details about you. In turn, you have right to check this file - and you should do so and inquire regularly about your credit report and your credit score, particularly when you plan a big financial change, for instance, before applying for a loan or a mortgage, you should always take time and review your credit report. This allows you not only to plan your moves accurately, but also to dispute any mistakes that might occur in report.

The credit report is an accurate record of your financial activities, including accounts you have, credits you may have taken so far, any late payments, and actions started against you for financial reasons. This report is used to determine your credit rating - which is a number indicating your financial risks.

The information typically included in a credit report refers to your personal identification data, credit information, public record information and a list of recent inquiries. The personal identification data, as you may expect, means your name, social security number, address (current and previous addresses), employer (also current and previous), your birth date, and so on. If applicable, your file may contain similar information about your spouse.

The credit information is your financial history - your accounts, loans and repayment records for past two years, from all banks, lenders, retailers, card issuers, other credit companies, and so on. The public record information records bankruptcy, monetary judgments and tax liens.

The list of recent inquiries contains names of those who obtained your credit report in past year. Various people and organizations may get access to your credit report, usually anybody who can prove a legitimate business interest, creditors, insurers, employers and governmental agencies. This list is kept for one year, while credit history information is kept for seven years, and, if you file for bankruptcy, that sticks for ten years.