Using a credit card can have as many pitfalls as it can have benefits, depending on how and why you use it. When you are careful and pay off the outstanding balance when it is due, a credit card is very useful. However, if you are late in making any payments, you will fall into the trap of higher charges as regards interest payments.

How to obtain a credit card even if you have a record of bad credit :

1. Start small - apply for cards with the smaller merchandisers, as these will quite often be willing to give you the chance. If you are successful in obtaining a card, only make small purchases and be diligent about paying at least the minimum monthly payment on time.

2. If you already have a bank, credit union or savings institution account, you should have a reasonably good chance of obtaining a credit card from them.

3. If you are unable to obtain either of these, it may be possible for you to ask for an unsecured credit card. In this situation you will need to establish a savings account and make regular payments into it. This is the guarantee for your line of credit and will allow the card provider to work out your deposit.

4. You may consider asking a close friend or relative to co-sign you to enable you to obtain a credit card. This person's credit rating will benefit you so choose someone with good credit. You must be responsible though and not place this person in a position where they not only have to pay their own bills, but yours as well if you default. Irresponsibility on your part will damage the other person's credit rating.

5. Whilst you are waiting for the credit card application to process, be sure to be punctual in your payments.

6. Once you have a card, you may be inundated with offers for more. You should restrict yourself to a maximum of three at any one time.

7. Avoid credit cards where you can only use them in a limited way. Remember that Mastercard, Visa, American Express and Discover are accepted in many places.

8. Avoid credit cards where you have to pay an annual fee.

9. If you are ever refused credit, keep in mind that the financial institution must by law explain why. Request a duplicate copy of your credit report and check it thoroughly.

Clever use of your credit card:

1. Make your payments on time. This is crucial if you are wanting to maintain or even improve upon your credit rating.

2. When you are able to, settle the monthly balance in full. If this is not possible, pay as much as you can and try to save for the next monthly payment. If you can stick to this routine it will be of immense advantage to you financially and will help you to save in interest payments.

3. If you get into the situation where you cannot pay the balance in full for a few months, reduce your use of the card for a time until you are better able to cope with the payments. Create a budget and never spend more than you can afford to pay back.

4. Get into the habit of carefully checking your monthly statement and rewards points, making sure that all the charges are correct and that there is no fraudulent use of your card. If you are not satisfied with what you are getting in return of your , check out other offers such as chase flexible rewards.

Above all else, you should remember to be careful in handling your finances. If you are experiencing difficulties in controlling the amount you spend and you simply cannot stick to a budget, then perhaps you will need to speak to your creditors and work out a settlement or monitoring of your bills. You may even need to seek out the services of a credit counselor. There are some credit therapy groups that do not charge fees to work with you to successfully overcome your credit problems.