Affects of Bad Credit
Many people grow up never learning or understanding the value of money. Their parents don't teach them because they were never taught either. This can cause a lot of problems for them and in some cases ruin their lives. How does this happen?
People that don't understand money spend it without thinking. The spend all their money mindlessly on things they don't really need and they never think about the consequences. Eventually, when they have no more money, they turn to credit cards.
When shopaholics get their hands on a credit card, bad things happen. They charge everything to it and only pay the minimum payment. This leads to interest and all the debt begins to pile up. Soon they are unable to even make the minimum payment. This can lead to thousands of dollars in debt and possibly bankruptcy.
This kind of situation and many others lead to bad credit. Bad credit leads to a lot of trouble. If you think bad credit isn't a big deal, think again. It will cause problems that will be very hard to fix. When you borrow money from someone and say you will pay them back but don't, you're not going to get away with it.
You don't get a slap on the wrist when you miss a payment, but it is likely to affect you poorly in the future. If you have bad credit history and a bad credit score, the next time you go to apply for a loan, it will be very hard if not, impossible. Lenders will not lend you money if you have very bad credit, and if they do, you will be charged a very high interest rate.
When someone is lending money to someone else, they are taking a big risk. If they don't know that you'll pay them back, why should they lend it? That's why they look at your credit. If you don't have any credit, you will have trouble getting a loan, and will most likely not be able to get a large loan such as a mortgage without a cosigner.
A cosigner is someone who can really help you out. If you have no credit, you can find someone who has good credit. If they are willing to, they will cosign with you and you will be able to get the loan based on their credit. If you get the loan and you stop paying, the cosigner will have to pay or else their credit will be damaged. This is why it is not easy to find a cosigner, especially if you have bad credit.
If you can't seem to pay your bills, in order to keep your credit from going down hill, you need to be proactive. Come up with a plan and a budget to live by. Cut out expenses you don't really need so that you can pay our bills. Do whatever you can to pay off your debt.
People that don't understand money spend it without thinking. The spend all their money mindlessly on things they don't really need and they never think about the consequences. Eventually, when they have no more money, they turn to credit cards.
When shopaholics get their hands on a credit card, bad things happen. They charge everything to it and only pay the minimum payment. This leads to interest and all the debt begins to pile up. Soon they are unable to even make the minimum payment. This can lead to thousands of dollars in debt and possibly bankruptcy.
This kind of situation and many others lead to bad credit. Bad credit leads to a lot of trouble. If you think bad credit isn't a big deal, think again. It will cause problems that will be very hard to fix. When you borrow money from someone and say you will pay them back but don't, you're not going to get away with it.
You don't get a slap on the wrist when you miss a payment, but it is likely to affect you poorly in the future. If you have bad credit history and a bad credit score, the next time you go to apply for a loan, it will be very hard if not, impossible. Lenders will not lend you money if you have very bad credit, and if they do, you will be charged a very high interest rate.
When someone is lending money to someone else, they are taking a big risk. If they don't know that you'll pay them back, why should they lend it? That's why they look at your credit. If you don't have any credit, you will have trouble getting a loan, and will most likely not be able to get a large loan such as a mortgage without a cosigner.
A cosigner is someone who can really help you out. If you have no credit, you can find someone who has good credit. If they are willing to, they will cosign with you and you will be able to get the loan based on their credit. If you get the loan and you stop paying, the cosigner will have to pay or else their credit will be damaged. This is why it is not easy to find a cosigner, especially if you have bad credit.
If you can't seem to pay your bills, in order to keep your credit from going down hill, you need to be proactive. Come up with a plan and a budget to live by. Cut out expenses you don't really need so that you can pay our bills. Do whatever you can to pay off your debt.
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Looking for ways to raise your credit score to excellent? Find more information and ways to fix and repair your credit so that you can get loans when you need them.
posted by Debt Consolidation Loan at
2:57 PM
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