Most financial advisors and credit agencies try to convince us that having a high credit score will help us obtain credit easier than having a low credit score. Although this may be true when it comes to mortgages, this is not necessarily the case with creditcards. If your credit happens to be less than perfect, you are likely to get a lot more new creditcard offers in the mail. The reason for this is because creditcard companies make money from the interest charges accumulated on late payments. People with less than perfect credit scores often do not pay on time and accumulate interest fees on their accounts. These kind of customers are a blessing for the creditcard companies. These sort of clients keep creditcard companies in business.
As a result of having so many new creditcard offers sent to your doorstep, you may be able to get interest free spending for a year or two. You may also be able to enter a rewards program with a cash back option or some other kind of incentive. The people who do not pay their bills right away may have a point. I am not sure if it makes sense to get into debt with creditcard companies, however, I do know that paying off your school loans and mortgage all at the same time is pure stupidity. Let’s face it, if you can pay the same small amount for your mortgage or student loan every month, why would you want to give up all of your hard earned savings to be debt free. In this day and age cash is king. We need to have cash readily available to pay for our daily expenses. Being debt free is not as great as they make it seem sometimes.