I don’t think I have to spell out how and why owning a credit card (or credit cards) can be a cause of real trouble. The temptation to purchase things you don’t really need for amounts you can’t really pay in a credit cycle can sometimes be just too much to fight against. First, you’ll get excited with the notion that because you’ve been approved by a credit card company and they provided you with a decent credit limit, you’re somewhat a little more special now. Now you have privileges not all people are lucky to have. You’ll look at the things you’ve always been wanting to have but you previously felt to be mere luxuries more than necessities, and then think again. You buy through credits, then you pay on time. Because you’re such a reliable borrower, the credit card company increases your spending limit. You’ll get giddy all over again and might become more bold in purchasing more extravagant things. The next thing you know, your bills are piling up and you find your self neck-deep in debt. Month after month, you pay the minimum amount for credit card balances that sometimes is almost as much as your finance charges. In short, your credit card balance decreases slower than an ant can travel from the Philippines to Singapore. That is, if you’re able to pay any amount at all. To do some credit repair, you might think of applying for a bank loan with advertised lower rates, thinking the installment scheme is a smarter way to improve credit. But that may work but only if you cut the source of your woes, bad credit cards, in the first place. You cannot improve credit score otherwise. The rule here, as anywhere, is, when you get a second chance, don’t mess it up. It’s bad enough to spend all your hard-earned money paying loans; settling credit dispute is a potentially messier and very unattractive prospect.

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