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Credit cards have always been extremely important to people for a really long time. Whether it is to have money at hand with ease for purchases or some extra spending power, they remain an all important investment for many folks. It is important to understand the importance of having a good credit card handy for all your spending needs and avoiding situations that can result in bad credit. Bad credit is a very real mistake that many people make and pay heavily for. It takes a long time to go off the record and stays on your report. The better you plan things, the more careful you can be in how you spend your money.

When you love spending it gets a bit difficult for people to decide on how they spend and how much they should shop for. Especially when there are numerous rewards to be won, people tend to lose track of how much money they are spending every step of the way. It is important to keep track of your credit limit at all times as spending too close to it can result in your credit scores dipping. Lenders like to see an ample credit limit and good habits such as paying off the debt sooner than later every time.

Bad credit can cause a lot of problems for you at every phase in life. You can end up with too big charges on your purchases, less money to afford the purchases when the interest rates add up, non negotiable interest rates, high fees in case you do miss or get late on payment and so on. Many folks tend to miss out on the importance of their credit history until they are actually in trouble over it. Especially during their college years when they get their first card, people tend to lose track of how much money they spend and wish to make the most of this first taste of financial independence. But the black marks that come from using the card too much and not being able to pay what you owe can stay with you for many years. When you get a card so early in life, it is important to be able to spend less and use it with discretion. Also check your report for any errors from time to time so you can correct it immediately than have to pay for something you did not do!