Why you shouldn’t try to repair credit score information?
Credit score numbers play a crucial role in determining your consumer credit behavior and bear a direct influence on the credit decisions of money lenders like banks and credit card companies.
"Today, there are three kinds of people:
the have's, the have-not's,
and the have-not-paid-for-what-they-have's.”
- Earl Wilson |
Besides this, credit scoring is also considered an important means of verification and is taken into consideration by many potential employers, auto insurance and home equity providers, and mobile phone and finance companies.
Since, they are useful for so many purposes; we are always seeking to repair credit score result. To most of us, a good credit score signifies status and respect in the society. And that is why, so many people strive to maintain and enhance their credit scores.
However, we need to realize the fact that a high credit score is an indication of the fact, that even though we repay our loans on time, we are still borrowing money and hence, we are in debt.
All of us are easily tempted to make use of credit, at some time or another. Credit is more readily and easily available than ever before and many of us do take advantage of these easy money offerings.
Although credit cards seem to be very attractive due to their convenience and ease of payments, they have many disadvantages as well.
Various hidden costs, interest on outstanding balances, late payments fees, over limit fees, payment processing fees, cash advances and convenience checks, transactions in foreign currency, membership fees are just a few of the disappointing traps associated with using a credit card.
Other traps associated with credit cards are the long-term default rates and all the creative ways that your interest rate can all of a sudden increase on you without any warning. Before long these folks are also looking for ways to quickly repair credit score results so they can attempt to borrow more to make their payments, and the downward spiral begins.
In recent times, it has been observed that some credit card companies are luring youngsters because they are so easily attracted to the get-it-now sales pitch. This particular segment of our society, besides being inexperienced at handling financial matters in a mature manner, is already indebted with their educational fees and other similar expenses such as college loans.
So before you go off and get yourself into a bunch of debt, and then eventually realize that you’ve borrowed more than you can realistically manage, think about why anyone out there would really want to repair credit score results. Why? Because they are knee deep in debt and they think that their only answer is to take out more debt. UGH!
How about NO DEBT, deciding to be different from your peers and living debt free? Crazy thought, isn’t it. You should know that many millionaires believe that the best credit score one can have is, zero. In other words, avoid using credit and avoid being indebted to anyone, ever.
Don’t be lured by credit card companies as they talk about “freedom” and the benefits of having a high credit score. In your attempt to repair credit score, you will only maximize your chances of increasing your total debt.
Obviously, it’s your choice which way you choose to live your life. What does the word, freedom, really mean to you?
"When a man is in love or in debt,
someone else has the advantage.”
- Bill Balance |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
