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Credit card has made lives easier for many and ended up being a bad decision for others. It is important to know how to manage your finances well. IF you have applied for many credit cards and used multiple cards and ended up with huge debts, you're not alone. Credit can be an intoxicating tool and many get carried away in using it. Eventually they find that when they apply for a mortgage on an apartment they really want to buy or a car loan they are refused on account of having a bad credit score.

Wondering how your credit score became poor? Each time you try to apply for a new credit card, you're credit report is affected. Each time you miss a payment completely your credit score is dipping. Even if you make a late payment rather than forget to pay completely, you are better off. Credit scores are a big determinant of whether a person gets approved for further financial loans or accounts. Banks and employers will look at how you have been managing your credit. While you will be given clear reasons by the Fair Credit Act about why you were denied an opportunity, once lost, it is not coming back.

You can work on your credit score to improve it or you can even try to make careful decisions from the beginning. Firstly apply for just half the credit amount you can afford. You will be able to balance your debit and credit better. Credit is never free money, what you keep charging you will have to pay, within a stipulated date. Missing on a payment results in high interest rates and fines. That leads to mounting credit card debt. To err is human of course, and you can learn from your mistakes and revert to paying on time, getting a secured line of credit to improve your scores.

If you find it difficult o keep track of due dates, then set up an automated account for paying the minimum amount due every month. Keep a track of the credit limit, never go over it even if you are given some leeway, it is going to reflect poorly on the credit report at the end of it. Make regular payments and get back on track, it is possible to have a clean record even if you have made mistakes in the past. Start fresh and clear your debts!