There have been many instances when we feel like just wanting to disappear simply because we can’t figure out how to run away from our monthly bills. So Becky Bloomwood! Month after month, those horrible bills keep coming, and we end up dreading the day when those bills will come. And for some, there is a moment of desperation when you just really turn your back on them all and ignore them altogether, thinking they’d go away if you do so – alas, they do not. What’s worse, this long line of unpaid credit will form part of your credit report which will turn out to be more important than just a piece of paper. When you apply for loans – home loans, car loans, even insurances – your credit history is reviewed. This is a standard operating procedure followed by majority of our financing companies. Although not scientifically proven, lenders will shy away from bad creditors, although it is not a guarantee that they will behave the same way again. They will always be rather conservative and err towards caution when it comes to these things. This will be disheartening when, say, you are trying to finance your dream house for your family, right?
I have seen an episode of How I Met Your Mother where Marshall and Lily were trying to secure a loan to finance their first own home in Dowisetrepla. Turns out Lily owed thousands and thousands in her credit card. In the end they got the loan but did so at a very step interest. And this is just one of the many unimaginable prices you pay for bad credit. You might be surprised to know that many employers nowadays usually check on their applicant’s credit history prior to hiring. Probably they link credit performance to being responsible. I know, this doesn’t sound too fair, but since they lack any concrete evidence to really measure you up, they do so with existing indicators, one of which is your credit history and credit report.
So, it really pays to maintain a good credit standing, and I know that this is way easier said than done. But just to start you on the road you should be travelling, you should stop looking at the minimum amount due and make it a no-option rule for yourself. You should always pay the whole amount you owe your credit company and to be able to do this, do not make any purchases you have no money for. You should think of credit cards as an emergency-only, needed-not-wanted option. Say you need medicines and you don’t have money, then go swipe away. But if it is just a dazzlingly beautiful pair of Jimmy Choos, sorry honey, this does not qualify as an emergency.
No matter what Becky Blomwood says, a good pair of scarf on sale is not a good catch, not if you don’t need it and not if you can’t afford it now or on the next payday.