Having a credit card has its advantages, but there are a few pitfalls that a money smart person needs to be aware of and avoid.

1. Keep an eye on your spending habits. Having a credit card is not having free money. High credit limits do not mean you can charge away and not worry about paying it back. This is how credit card debt gets out of control.

2. Maxing out your credit limit on your credit card will affect you poorly for your credit rating. Carry a debt load is not good, even though it is sometimes necessary. Again, shop for needs not wants with your credit card.

3. Don't allow the credit card company to make too much money off of you. Pay the balance or as much as you can every month. Every time you pay the minimum balance you are paying interest to the credit card company and that's about it.

4. Having too many credit cards will make you look over-extended to lenders and hurt your credit. Keep it simple, with one main card.

5. Shop around for the best deals. Credit cards can have high interests rates, even those that entice you with 0% interest for the first year. Read the fine print before signing up.

6. Getting lost in a debt cycle that nickels and dimes your money every month. You may have the money to purchase all you want to purchase, but what will you have left over? Again, this is easily avoided by not overspending and paying off the balance monthly.