Good Credit, Bad Credit

Ring ring. That’s the sound of debt collectors calling my phone. I think one of my friends is calling me, but it’s just a collector wanting money from a credit card bill. It’s nice to have a credit card if you have to pay a bill and do not have the money right away. The problem is when you spend too much and cannot pay the bills back. The later you pay these charges back, the interest begins to build up. That is one of the many mistakes of having a credit card. Paying your bills on time, not maxing out your credit cards, or not even getting a credit card, will keep you from getting a bad credit score.

First of all, paying your credit card bills on time will not hurt your credit score. Keeping your bills up to date will raise your credit score. The more you pay, the better the score. The higher your credit score gets, the lower your interest rates will be. The better your interest rate, the easier it will be to get a loan. Every credit bureau likes to see your bills on time and be open for more loans. Maintaining these priorities will keep your credit score high and safe.

Second, do not max out your credit cards, or you will have a hard time paying the bills. The later you pay your bills, the higher your interest rates will be. You will be paying back much more money when you interest rates go up. If you have high rates, it will be harder to get a loan or even get one at all. If you cannot get a loan, there’s no point in your credit score. If you let the rates get to high, it can get you into some major debt. It takes seven years for a collection to come off of your credit score. If this begins to happen, it will lower your credit score and hurt you in the long run.

Finally, if you don’t want to deal with the hassle, do not even get a credit card. The only problem not having credit cards is that it will not build up your credit or have credit at all. Without a credit card, you won’t have to worry about interest. Thus, not having a card, there will be no extra bills. If you don’t have any extra bills, you will save more money in the long run. Most people need some sort of credit it makes buying things easier to afford if you do not make a lot of money.

I ruined my credit at a young age. I applied for a lot of credit cards. Before I knew it, I was over my head in credit card debt. I didn’t have help from my parents to say no. Still today, these mistakes show up on my credit report and I continue to have very high interest rates. Things would be different if I could start over, but I have l have learned from my mistakes.