Credit cards have ballooned in popularity in the UK. A recent study has shown that very soon, over a third of all adults in the UK will have credit cards, and the numbers are still increasing rapidly. It is important to remember however, that credit cards can have important consequences on your credit report however, so some caution is advisable when using them.

Your credit report is extremely important for a wide range of purposes. These days they are not only used by lenders when deciding whether or not to lend to you, but also if you apply to rent a flat, apply for insurance or in some cases, even when you apply for a job. So you should take care not to damage your credit report through credit card use.

For most people, using credit cards wisely and responsibly will not damage their credit report and in some cases, can show lenders that you are accustomed to credit and can meet your obligations and so help you to build up a positive credit history. However, one of the important items on your credit report will be the amount of credit to which you have access to. If you have thousands of pounds of unused credit open to you, it may cause some lenders to be cautious, even though you haven