Personal credit is the process of granting a loan to a person, which normally has a major side effect of creating personal debt.
A person uses credit when he is purchasing anything today by committing to pay for it the next day.
Unknowingly, they end up in a cycle of debt due to the increasing amount they are expected to pay at the end of it all.
Such lending would depend on the worthiness of the concerned individual as far as finances are concerned.
Hence, availability of personal credit can only depend on the lender awareness of the financial history of the individual seeking the finance.
It could also depend on whether the lender is aware of employment and salary information in order to judge the financial worth of the person.
Obtaining financial history is a process that includes, making an application from a financial institution requesting for ones financial worth.
Once they become eligible, they obtain funds which could be loaded to their cards.
The card holder receives financial statements at regular intervals indicating purchases made, interest charged, minimum payment amount due and the payment due date.
Once debt has been created, there are some ways of prevent it from increasing, Instead of accumulating debt, you better stop using those cards until the debt burden is light.
Copies of the financial report need to be obtained to determine the areas that need to be worked on.
Past dues, if any, should be cleared since, they contribute a big percentage of the financial score and at the same time accumulation of debts is stopped.
The bad financial accounts should not be closed since it could adversely affect future financial position.
The debtor should do whatever possible to improve their personal records.