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Credit cards are convenient and user friendly methods, by which one can pay for his purchases. Credits can be raised keeping in mind the credit limit. This borrowed credit should be repaid periodically or else it would incur hefty finance charges. Provided an individual uses his credit card in a wise and sensible manner, maximum rewards can be reaped.

It is often easy to get carried away while using a credit card as everything seems affordable. Any purchase can be made by a mere swipe of a card. This would create a situation where the credit made, would surmount to such a degree that an individual might not be able to clear his balance. The failure to clear this balance has serious repercussions. This balance accumulates and leads to a bad credit history. It is imperative that an individual who has incurred a bad credit history pays his balance and clears the negative history.

Suggestions to clear a bad credit history

• Look into a good balance transfer credit card option

• Make sure that you pay your credits on or before time. It's better to be safe than sorry

•Try to avoid bankruptcies and tax liens

• Continue to clear the balance in a card that you own while waiting for the sanction of your transfer balance card

• Invest in a reliable secure credit card

• Keep a watch on your annual credit reports .Ask for a copy and analyze it carefully for any mistakes

• Change your spending habits.

Balance transfer credit card

They are credit cards that offer the transfer of balance that you have incurred with your existing credit card. They are valuable options to consider in case of a bad credit history. They usually offer lower rates of interest in comparison to any existing credit card company that you might own a cad in. One must be careful before deciding on a balance transfer card. They should analyze the rates of interest. The rates offered can be promotional offers, variable or low fixed rates of interest. The promotional offers usually offer 0% balance transfer for a certain period of time. If the outstanding balance isn't cleared prior to the completion of this period, the rates of interest increase proportionally.

0% balance transfer schemes

These schemes offer 0% interest on your balance. This is advantages in that the excess sum of money that would have to be paid in way of interest would be cancelled. The individual would have to pay the basic outstanding balance.

Earlier many companies used to offer this scheme for a minimum period of 1 year with minimal transfer fees. In 2009 the average minimum interest period fell to a dismal 6 months. Those offering a 1 year minimum interest period would have rates of interest ranging from 3-5%

Suggestions for a 0% transfer card

• Try to go in for a 0% transfer card even if it has a transfer amount.

• Check your credit score periodically

• Don't transfer balance online

• Don't wait for better offers. Choose the best from what is available