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fees. It will also probably make points or rewards cards less useful as you simply wont accrue enough points to allow you to collect your rewards. The best card for emergency use only, is one that has no annual fees, no minimum usage requirements and carries a low interest rate for purchases. If you are forced to use it in an emergency, for something like unplanned car or home repairs, chances are you wont be in a position to clear the balance immediately.

10. Do you know your credit rating? Generally speaking applicants with better credit scores or ratings are offered better terms on their credit cards. Before making an application, do some research. Find your credit score and do everything you can to help improve it. Experian and Equifax are two of the major credit rating agencies. They collect details on loans and other credit that consumers have. They track your repayment history and defaults, including County Court Judgments. Based on your credit history, you are awarded a rating. Credit card issuers use this to help them determine what interest rates and conditions you will be offered. If you have outstanding debts, work to clear them, and then ensure that your credit report reflects that. Even if you believe you have excellent credit, always check to make sure there are no errors on your report. Both agencies offer free credit reports, and you should take advantage of this before making your applications.

If you have a very poor credit history, and are unable to obtain any credit cards, consider a debit card. They do not offer the same legal protections as a credit card, but they are a good way to allow you to track spending and get used to using a card as a payment method. It is important to always remember that a debit card will withdraw money directly from your account, and that the transaction is generally instant. Unlike a credit card, when you use a debit card, your account must have the money in it when you make the transaction. It can, however, still be a useful tool to allow you to build upon and improve your financial health and creditworthiness.

Learn more about this author, Julie Wood.
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