It is very common to get a negative credit rating from using your credit card. A lot of people do not know this so it is quite surprising?hocking, even. It is imperative that you know what makes up your credit score and how it comes to be the way it is. Basically, your credit score gives a reflection of how you fare in financial situations. Fundamentally speaking, the credit score is what some companies use as a basis for determining if you are able to handle a situation with credit the best way possible. You credit score is based on the following.

Your credit score depends on the amount of debts that you have accumulated. The amount of time by which you have left your account standing is also taken into account. In addition, the number of times you have gone into debt is also taken into consideration, as well as the history of your debt and/or loan refunds.

Indeed taking these into mind, it is very much possible to get into debt with credit cards. Whenever you use credit cards, your creditor is actually the entity paying for your purchases. Basically, the charge goes to your card company, which you should eventually pay. In addition, the bank will put interest rates atop your dues along with APR. If ever you get into trouble paying your card, it will reflect very badly on your credit score, especially if it happens often.

Bad credit will make it difficult for anybody to kind of loans, including credit cards, because companies will be wary of your paying ability. To solve this, some companies have made bad credit credit cards possible. They allow credit cards for people with bad credit. They put their trust in the ability of the appliers to pay on time.

If you do not qualify for these credit cards for bad credits, you can go for Visa prepaid cards. No credit is needed for these kinds of cards. But with these, you are not able to repair your credit score. The only consolation with these cards is that they work for people with bad credit and you do not get debt from them.

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