Good Credit Story
My friend began his adult life with good credit ratings. Soon he was able to obtain credit and financing for cars, snowmobiles and much more. He made the payments, and became increasingly in debt, while he was in it. When I was 30 years old, had over $ 20,000 in credit card debt, car loans and business tools.
Over time, it was too difficult to control. After bankruptcy, I was convinced that the credit card company might reduce your balance, if only so that threatened to file for bankruptcy. However, he had to pay more on the cards or credit card companies do not believe that he is in financial difficulties. He wanted, and then wrote a nice letter to the company, explains his situation. The majority of the Court at least 30% of what he owed, but had to pay the balance immediately, so that a home equity loan.
As a result, your bad credit rating is not as bad as they had filed for bankruptcy, and he was able to rebuild your credit score. He began to build their credit again. Your good credit allows, begin the process of burden itself with debt. He lives a stressful life, to say the least.
Bad Credit Story
Another friend had the first credit score on your phone bill at her home in the first place, which is never paid on time. Time is interrupted. This, together with some other smaller credit infringements, destroyed his credit score while she was young. What that has meant for them?
Now that they do not borrow, has not had the pleasure overwhelmed by debt, on the edge of bankruptcy. She has to buy the things for money when he gets it or wait until you save enough. The inability of a lot of things that a fraction of what you owe them, who are less fortunate? I do not think so. She seems happier than most people, perhaps in part because they now no debt of stress that is so typical.
Bad Credit is Good?
I’m not saying you should consciously try to get a bad credit rating, but if you have one, you know, it’s not all bad. The habits that you could be in trouble here, even if I could get more money to lend. Why not go see it as an opportunity to stop further into the debt trap, and the opportunity to get better?
Cash for everything. Pay credit cards and loan balances (the highest interest first.) Right now you get off your card, start to set money aside to buy a good used cars to make money. if you have done that, start with what would be a car payment in a savings for future payments were in the home or business (everything you borrow). Yes, a bad credit rating would be good if a lesson and an opportunity taken.