It is so easy to get yourself into problems with your credit cards. One late payment and for some credit card companies that is the indication that you cannot pay your bills. They will immediately raise your interest rate to something ridiculous, like 24% and then you will be stuck paying off that card for the next 23 years. Yes, you heard correctly. If you have a credit card statement that has $2500 on it with an interest rate of 24% and only make the minimum payments, it could take you over 20 years to pay it off, that is saying that you do not charge anything else on it from this day forward.

The first thing that you must do is stop charging on your card. There is no choice. The only thing that charging on your card is going to get you is in deeper and deeper debt and that is the last thing that you want. Make all of your payments on time and do your best to pay a few extra dollars above the minimum. Even if it only starts as an extra $10, it is better than nothing.

If you are looking to rebuild your credit by getting another credit card, you have to go about it the right way. You should not get a prepaid credit card. It is a waste of time and a waste of fees. They do not report to any credit agency so your transaction history will mean nothing. Credit cards that pride themselves on being for persons with less than desirable credit are worthless as well. The interest rates are astronomical and you are only going to wind up right back where you started.

The best think you can do is applying for a credit card with a low limit and make your payments on time. Each on time payment will help your credit score. And that’s how you use credit cards to rebuild credit.

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