Not all credit cards are created equal

When consumers need an advance to make a purchase, many turn to their credit cards. While this can provide immediate relief, defaults on accounts or nonpayment can adversely affect an individual's credit for many years.

Though credit card defaults are on the decline, according to CardRatings.com, this is still a major issue for many Americans and can affect things like their ability to get loans, open other lines of credit and other financing. The news source said that in September, default rates fell by more than 1.5 percentage points year-over-year, particularly in large cities.

However, some cards are worse than others, a recent CardHub report explained. If an individual already has bad credit, the news provider recommended staying away from First Premier Bank's Gold Credit Card, while noting that Visa's Black Card is not worth the benefits provided. The source also reported that the worst overall card for consumers for making new purchases is the Arvest Bank Classic Credit Card.

Rather than pursuing new lines of credit to rebuild a poor score, many consumers are instead choosing to rely on a different tactic - bolstering their Payment Reporting Builds Credit score. People can provide the information from one bank and three utilities accounts to credit bureaus, which then build a credit score that can be more reflective of positive payment histories.