The content is accurate at the time of publication and is subject to change.
Getting your first credit card can be exciting but having to deal with bills and issues soon after may not be as pleasant. Especially if you have spent beyond your means it can be rather unpleasant trying to find way to stall payments and dealing with a bad credit history. Especially if you doing maximum work and there is no scope for some extra income to smooth out the tough times, you may not be able to really sort out your debts or issues. Banks have an aim which is to create more customers. They will certainly offer customers credit cards with higher credit limits. It is up to each consumer to choose what they can afford to spend on and how much is okay.
Credit cards if not used properly can end up creating extremely complex situations and you may be struggling for years to pay off what is owed. When you have been in a situation with a high interest card, you will know how bad it is. No matter how much you pay, it will seem like you are only able to touch the interest amounts while the large chunk of debts remain the same. Defaulting on payments or going late will of course get mentioned on the credit report and then in no time you will be neck deep in bad credit scores and history. When you want to get out of this debt cycle you will have to sit up and do some serious research and make resolutions about working things out, one way or another.
When banks lend you the credit to spend, they expect you to be able to pay what is owed back on time. When you do not do so, they are unwilling to allow you to have anymore credit. However if you have been making regular payments then you should check your credit history and see if the information there is correct. Maybe you had co-signed a card for someone? It could affect your credit history adversely if that is the case and you will have to end up paying much more on behalf of someone else`s irresponsible spending. There may also be a mix up of information which is leading to the errors and problems.
Make sure you get the slips from previous transactions out and compare to see where you stand and what you have gone wrong in. Evaluate credit applications carefully to check for any discrepancies in the amount. Sometimes you may have refused to pay for a damaged item billed using your card and it may have been billed for. If you want to avoid having a bad credit history situation be alert at all times. Carefully see what you have spent on and where you have gone wrong. With the right information you can make sure that you do not make grave errors and pay more than you have to in the long run of things. Choose wisely and make the most of your credit.
