How will my Bad credit History Affect me?
So many people grow up knowing nothing about money management. They were never taught from their parents who were probably never taught themselves. The problems this causes can ruin the life of anyone who is affected. How so?
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.
Put together a shopaholic and credit cards and you end up with a doomed combination. Shopaholics charge everything and only make the minimum credit card monthly payments. Eventually interest begins to pile up and the debt grows exponentially. When they can't even afford the minimum monthly payments, they end up filing for 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.
Bad credit will affect your ability to get a loan. The worse it is, the less likely you will be able to get a loan. It doesn't have to the worst credit possible in order to be denied a loan either. Sometimes people with okay credit can't even get a loan. Nobody is going to give you money if they hear you don't pay people back.
When someone decides to lend you money, they are taking a risk. They can never know for sure that you will pay it back. This is why they look at credit. If you have absolutely no credit, you probably won't be able to get a big loan such as a mortgage without a cosigner.
A cosigner is someone who has excellent credit who signs the loan as well. If you don't pay the loan back, they will be charged. They have to pay it if they want to maintain their good credit. This is why it's hard to find a cosigner. If you are good with your money and you don't have credit because you are still young, if your parents trust you, they might cosign for you.
Are you worried that you won't be able to pay your bills? You need to pay off your debt as soon as possible. Take every action possible to make extra money and save every penny so that you can pay off all your debt and get your credit up.
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.
Put together a shopaholic and credit cards and you end up with a doomed combination. Shopaholics charge everything and only make the minimum credit card monthly payments. Eventually interest begins to pile up and the debt grows exponentially. When they can't even afford the minimum monthly payments, they end up filing for 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.
Bad credit will affect your ability to get a loan. The worse it is, the less likely you will be able to get a loan. It doesn't have to the worst credit possible in order to be denied a loan either. Sometimes people with okay credit can't even get a loan. Nobody is going to give you money if they hear you don't pay people back.
When someone decides to lend you money, they are taking a risk. They can never know for sure that you will pay it back. This is why they look at credit. If you have absolutely no credit, you probably won't be able to get a big loan such as a mortgage without a cosigner.
A cosigner is someone who has excellent credit who signs the loan as well. If you don't pay the loan back, they will be charged. They have to pay it if they want to maintain their good credit. This is why it's hard to find a cosigner. If you are good with your money and you don't have credit because you are still young, if your parents trust you, they might cosign for you.
Are you worried that you won't be able to pay your bills? You need to pay off your debt as soon as possible. Take every action possible to make extra money and save every penny so that you can pay off all your debt and get your credit up.
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Do you want to raise your credit score? Find more information and ways to fix your credit so that you can get loans when you need them.
posted by Debt Consolidation Loan at
5:51 AM
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