It is really fun to go shopping. Especially if you have some credit cards. You can buy things and not have to worry about paying for them until later. Many people enjoy doing this. For example, if you see a gorgeous pair of shoes, you can put them on your card if you don't have enough cash in your wallet. I'm sure you know how this feels.
Of course, every good thing has some bad sides to it. And one of the bad sides of using your credit card too much is that it can ruin your credit rating. What is your credit rating you may ask? It is a number that people will look at to determine if it is risky to lend you money or not.
Think about this. Let's say you are young and carefree. You are in your twenties. You spend lots of money on credit cards. Pretty soon you are falling behind. You still manage to pay your bills, only you may pay them a couple weeks late. Pretty soon your cards are maxed out.
Of course, if this continues, your credit score will sink lower and lower. That means if you ever apply for a loan in the future, you'd either be turned down, or you would get the loan at incredibly high interest rates.
How do you get out of this mess? Well, hopefully you won't get into it to begin with. But if you are already there, then you've got to make some tough financial decisions on how to slowly but surely improve your credit score.
The biggest problem comes when you try and qualify for a mortgage. Owning your own home is a dream for many. But if you have bad credit, then this might not be possible. Lately there have been a few companies that specialize in mortgages for people with bad credit. Just realize these come with really high interest rates.
Credit cards are handy, but they can get you into trouble. So be careful when you use them.
Of course, every good thing has some bad sides to it. And one of the bad sides of using your credit card too much is that it can ruin your credit rating. What is your credit rating you may ask? It is a number that people will look at to determine if it is risky to lend you money or not.
Think about this. Let's say you are young and carefree. You are in your twenties. You spend lots of money on credit cards. Pretty soon you are falling behind. You still manage to pay your bills, only you may pay them a couple weeks late. Pretty soon your cards are maxed out.
Of course, if this continues, your credit score will sink lower and lower. That means if you ever apply for a loan in the future, you'd either be turned down, or you would get the loan at incredibly high interest rates.
How do you get out of this mess? Well, hopefully you won't get into it to begin with. But if you are already there, then you've got to make some tough financial decisions on how to slowly but surely improve your credit score.
The biggest problem comes when you try and qualify for a mortgage. Owning your own home is a dream for many. But if you have bad credit, then this might not be possible. Lately there have been a few companies that specialize in mortgages for people with bad credit. Just realize these come with really high interest rates.
Credit cards are handy, but they can get you into trouble. So be careful when you use them.
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Inside Secrets To Credit
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