When I went to the meeting we had on Wednesday in the library, I learned that credit can be affected in many ways. If you have many debts to pay on credit cards, phone bills, car payments, etc. your credit score will be greatly affected.
I learned that if you have a bad credit score you cannot even buy a car, and if you are able to, you will have a higher interest on it. Also if you have a lot of credit cards, you could also end up having a bad credit score.
For example, my mom has a friend who has thirty credit cards, and almost all of them are maxed out, so therefore her friend has very bad credit. My mom on the other hand only has one card, and that is her debit/visa card. She only spends what she has in her bank account whenever she needs to and doesn’t have to worry about paying fees at the end of the month. A few years back she shredded all of her credit cards and has been happier since.
However, in my case, I don’t have anything but straight out cash that I can keep with me or in my bank account to keep it safe, which is perfectly fine with me.
Whenever I need something, I will be like my mom and use my own money, rather than borrowing it and paying it back later with extra fees.
I couldn’t imagine having to pay off as many credit cards as my mom’s friend has for example along with the extra interest rates added onto each one of her cards. The highest interest rate she has is 29.99 percent, so she is basically making the credit card companies rich just off of the interest alone.
This is why so many people find themselves in quick sand when it comes to paying off their credit cards. Most of the money goes towards interest, and very little goes to the principal.
It’s like being between a rock and a hard place when it comes to credit, because you have to take out credit in order to have a good credit score.
I think the main thing is you have got to be responsible with your credit debt and not treat it like it is money that is growing on trees, because when it gets right down to it, you will have to pay it back in the end.
- Lynda B.
I learned that if you have a bad credit score you cannot even buy a car, and if you are able to, you will have a higher interest on it. Also if you have a lot of credit cards, you could also end up having a bad credit score.
For example, my mom has a friend who has thirty credit cards, and almost all of them are maxed out, so therefore her friend has very bad credit. My mom on the other hand only has one card, and that is her debit/visa card. She only spends what she has in her bank account whenever she needs to and doesn’t have to worry about paying fees at the end of the month. A few years back she shredded all of her credit cards and has been happier since.
However, in my case, I don’t have anything but straight out cash that I can keep with me or in my bank account to keep it safe, which is perfectly fine with me.
Whenever I need something, I will be like my mom and use my own money, rather than borrowing it and paying it back later with extra fees.
I couldn’t imagine having to pay off as many credit cards as my mom’s friend has for example along with the extra interest rates added onto each one of her cards. The highest interest rate she has is 29.99 percent, so she is basically making the credit card companies rich just off of the interest alone.
This is why so many people find themselves in quick sand when it comes to paying off their credit cards. Most of the money goes towards interest, and very little goes to the principal.
It’s like being between a rock and a hard place when it comes to credit, because you have to take out credit in order to have a good credit score.
I think the main thing is you have got to be responsible with your credit debt and not treat it like it is money that is growing on trees, because when it gets right down to it, you will have to pay it back in the end.
- Lynda B.
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