Lenders rely on your ability to handle your finances. If you cannot handle a $2,000 credit card, they would not lend hundreds of thousands for a home or tens of thousands for an auto loan. As I have always said, it is all about RISK. Can some allow credit cards to ruin their lives? YES YES YES So many people have acquired so much debt, not counting on the fact that they could lose their jobs someday, lose a loved one and have to pay for a funeral, there are so many hardships that could happen. Never allow your credit card to go over 1/4th (.25) of the credit limit. Always have two credit cards that are used for only small items that can be paid off within one month. Never use them for groceries, bills, car payments, etc. Now, they are even profiling where you shop - Walmart verses Macy's. Revolving credit gives more points on a score because it has no collateral attached. Derogatory payments usually report for seven years whereas bankruptcy and foreclosure are for 10 years. Today 620 is a bad score but two years ago, 540 was a bad score. Never cosign for someone else. The odds are that they cannot make the payments because the lender is requiring you to take the risk and their formulas do not lie. Learn to do a budget and keep a budget for 6 months before requesting a credit card. If you are late or miscalculate a payment, call the creditor and beg for forgiveness on your credit report. Times have changed and they are upset over the loss of compensation so now they are going to be much tougher in reporting. Take classes on personal finance if you ever want to own a home, refinance one or purchase a new home from now on. Always live within your means.