People who are seeking to establish credit will often apply for a
major credit card or for a personal loan. On the other hand, people
who are in debt will often apply for credit cards, believing it is a
solution for debt consolidation. In both instances, the people in the
scenario are both risky candidates for getting a loan.

If you do not have credit, it can be just as difficult to get a loan as if you
had bad credit. Credit is necessary these days, which is why you should
work on building it before you actually need it for something important.

Regardless of the situation, you must stay on track if you find a way to
consolidate your debts. Once you begin the process of debt consolidation,
you must keep track of your money, spending, and so forth. When you
keep track of your money and spending, you are taking the first step to
consolidate your bills and manage your money at the same time.

Credit cards are nice to have; in fact today, credit cards are essential, as
you cannot make purchases in some instances if you do not have a major
credit card. Pre-paid credit cards are newer cards that offer a similar effect
to credit cards.

The cards allow you to deposit your money into the card and use it as though
you had a major credit card. The downside is that these cards have fees and
this will not help you to consolidate your debts. It is possible to get a credit card
if you have bad credit, but it may come at a costly fee.

The interest rates are often higher than on cards given to individuals or families
without credit problems. So if you are bent on getting a credit card to consolidate
your debts, think again; if you don't, you could end up in more debt!

Talbert Williams 1DebtFreedom.com All rights reserved