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Research: Credit cards and bad credit- It doesn't have to be a nightmare! -

Credit cards seem to be at the root of many consumers' bill woes. While they are expensive, they need not be as unaffordable as you think. In fact with proper care and attention to your monthly dues you can be sure that you will definitely get the best deal out of it. Credit cards can make life simpler and they can serve a host of other benefits if you make sure that your credit score is always rising and not dropping. How do you find this out? You can do this by requesting for an annual credit report. If you are a high end customer, you will be getting a host of benefits like a credit card with attractive rewards, high credit limits and more. All of these can work in your favor or against you depending on how you choose to use it.

Firstly credit card agreement are not meant to be put away once you have the card, you should know exactly what you are getting from signing on for the card and the more you keep a track of the purchases, the better you will fare. If you miss a payment or grow late on it, then you are breaking the agreement with your creditors and it may result in late fees or in the worst cases a hike in interest rates. There have been cases where people's interest rates have shot up to twice the original from such mistakes. You need to also make sure that if at all it does go up, what you can do to bring things back. If there is no going back, doing a balance transfer would be the only recourse left to you.

When you have had past occasions where you missed your payments then sit down and have a look at your purchasing patterns, see where you are over spending and cut down wherever you can to make amends. The sooner you start the better it is for you! Experts also suggest that consumers refrain from applying for too many cards. It does nothing but harm for your credit scores when you have too many applications or rejections on your credit report. Negotiations are also important when applying for a credit card, if you are aware of having a clean report and a score above 700 you can try to work on a lower interest rate being accorded to you.

Credit bureaus also keep a track of your spending habits; make sure you do not max out your cards. If your cards are always near the credit limit then you will be marked badly. Make sure that you keep it to a 30% level in terms of the credit limit used. Excessive use will make your credit score drop without a doubt; they are not interested in how you pay alone but also how you spend. There are of course benefits as well. If you can work on having a good credit history, you will be able to get better cards, no annual fees and higher credit limits on the cards you opt for!