Good VS Bad Credit: How to Survive from a Bad Debt
Debt is something that most people hate to deal with
, but it is something that you would eventually have in your lifetime especially if you are planning to make important purchases like a house and a mode of transportation. You just have to know the distinction between good and bad credit so that you can be able to avoid the latter as much as possible. This type of debt will greatly hurt your credit rating and it can even push you to have heavier debts in the future.
Good credit is basically important commodities that are far too expensive to pay cash for, but they are vital to your life. A big example is buying your own car. This is something that you cannot generally afford to pay in one sitting, but you need to have one because it would serve as your mode of transportation. To make sure that these kinds of purchases will not pull you down, choose a company and a brand that will be able to give you the lowest interest rates. Make sure to pay on time so that it will have a positive effect to your credit score.
Bad credit on the other hand, is a form of debt that you incur because you either bought something that you don't really need or you did something that's unnecessary. This debt is usually attained when you used your credit cards without any qualms whatsoever. If you want to make sure that you are going to be able to qualify for more financial perks in the future, you have to take bad credit off from your report because most institutions interpret it negatively.
The best thing to do when you have a lot of bad credit in your record is to stop spending and pay them off one by one. If you have more than one account to deal with, start with the high interest ones. You can push down the current interests by calling your banks and credit card companies and ask them to lower their rates. Don't even hesitate and even if it would mean that you are going to make some lifestyle changes, do so because you need to pay these debts as soon as possible.
Good VS Bad Credit: How to Survive from a Bad Debt