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Credit card problems plague nearly every individual. What makes a good credit report is a question many wonder. If you have no prior credit records it makes things difficult, as does an adverse credit score. While credit cards are a very useful tool, they can also be quite a problem if you do not work out a proper strategy in using them and sorting out your balances on it. A good credit record can work wonders in terms of employment, insurance and mortgage. You will have no problems getting that loan approved for your new car or in purchasing a good deal on the insurance for your office. However one mistake financially can sink your credit report for a period of seven years!

Know your options well when applying for a credit card. If you no prior history then being granted a credit card by a bank would be difficult. Always apply from a bank where you have an existing account and can validate regarding your affordability and payment on the card. If you work with a bank where you have an account already, you can at least get a secured card. This means that there are funds set where it acts as collateral in case you find it difficult to pay your credit card balances. A secured card is different form a prepaid one. In the secured and pre paid one there is guarantee of payments, but in the prepaid the amount due is already paid.

There are also store credit cards available which have reasonable interest rates. These can also be availed of much more easily. While it does not have a huge effect on the credit history to show these records, it does have some standing when maintained well. There are many offers coming from store credit where people have a 90 day purchase period with no interest. Getting store credit and using it can improve your records as well. It counts when you have paid it in full well before time. Do be sure that you have the funds on hand to take care of it and be sure that there is a reasonable period for settling the amounts of credit used which works like a kind of loan.

If you lack a credit history, it is not cause for alarm. You are in the small percentage that has no debts or adverse credit history. You can still use employment and bank statements to convince a dealer if you plan to buy a car. You can work out installment options if you would like to settle it that way so you have enough on hand for other financial commitments you may plan to have in the future.

When applying for a card, it is not mandatory that you have to use it and leave amounts to be closed on it. Do not apply for more cards than you can keep track of, it does nothing to improve your scores. Having a few credit card accounts open will work in your favor, whether you use them or not. In case of making payments, close the whole outstanding balance in one go, it works better than leaving a balance each time.