Until you fall ill, you do not realize how good you had it going. In the same manner, credit cards seem like a fixed part of your life no big deal nothing great about it until things turn bad. How essential it has become to have plastic cash turns to reality only when we have troubles with the credit card
When credit scores turn bad and lead to various situations and difficulties at employment, insurance, mortgage and more we realize that there is a factor that determines all these called as credit history. So now that you are in a rut, what you can do to fix it would automatically be the concern. There are steps that you can take to get this number back on track and you can even end up with a no annual fee credit card and a low interest one once your scores have gotten back to where they should be.
Majority of the time it has to with late payments. Until you can work out a way to pay your bills on time and arrange for that process to happen when it should things are simply not going to fall in place. 35 percent of your credit score depends on how you use your credit cards.
Even if you did pay but paid a few days or a day late it will still affect your credit history. Or else you may have to look at creditors who will not report immediately to the bureaus. Most people do not consider all of the variables when it comes to credit cards; they just get it and are off to shop thinking it is more money to spend. This is really not the case. When you have a credit card it is a means to shop more conveniently not an extended budget. If you cannot afford to close the balances then your interest rates will add on to it and you will end up with a large sum to pay off at the end of it.
Another area to be careful about is online shopping. Do not make a payment with your credit card unless it is a site that is approved and known to you. If you do make a payment at some unknown website you are at risk for being scammed or being part of a fraud. Once your money is gone retrieving it will be a complicated process so it is as good as gone. Plus once they have your information through those channels they can misuse it in the future. Do not shop online except through trusted channels.
If you have a child who has a credit card on which you are a co-signor you need to be careful about it. IF he or she is making extravagant purchases and missing the due dates it will damage your credit history as well. Ideally you could give them a prepaid credit card
that way you have a hold on how much is being spent each day.