Think first. Think before you do anything else. Determine if this is the right time to establish credit. Do you have at least $1000 in an emergency fund so you can make payments during a financial crisis? If not, establish your emergency fund and then reconsider getting a credit account. Think again: Is this the time in your life to build wealth by saving or to incur debt? Yes, you can do both at the same time but each time you choose to spend you also choose not to save. Think!

Still want a credit card? Proceed with caution, then.

Consider the type of credit card you want. There are a lot of different types, so weigh your options carefully against what you want to do with the credit. Compare agreements and interest rates and make certain you understand how each card works. Be proactive; do not just consider the companies that are sending you pre-approved applications. Use the internet to find the right fit and consider all the different types: banks, credit unions, retailers and credit card companies all offer credit, but rates and agreements vary greatly. (By the way, Visa and MasterCard are processing companies; they do not offer lines of credit on their own.)

Read the agreements carefully and more than once. You are about to sign a legally binding contract, so now is not the time to scan documents. Read them. Compare them. Do your due diligence.

Your agreement with a credit card company goes into effect on the first day you use its card. Not when you apply, not when they send you the card and not when you call the number on the card to activate it. You "sign" the agreement when you use the card for the first time. So, before you make that first swipe, remember this: When you have credit card debt, you are like a cat with its head stuck in a jar. It can be so much easier to get in it than it is to get out of it.