Credit starts simple, but once 18 years of age comes along, people are bombarded with credit card applications via mail.Simplicity then follows and all a person needs to do to obtain a credit card is a small signature.
Then its time to shop. Maintaining good credit can be difficult, but sometimes sliding that card and punching in that four digit number can become addicting, and in no time there will be a bill waiting for some reality check time.
“I started using my credit card, and forgot to do my payments,” said Bryan Arajo, 20, undecided. “[That’s] when I realized I had like a $300 debt.”
Low credit comes from numerous things like not paying your credit card bills on time, the monthly mortgage, or missing all payments together.
The truth about low credit is not only that a person can sink bottom low with debt bills, but once they manage to pay them, they can be denied credit or charged a higher intrerst rate.A low credit score indicates to lenders that you are a high risk borrower. If lenders are willing to loan money to the person again, higher interest rates can be expected.
“My parents had a low credit score,” said Saraih Lobos, 22 psycology. “We had to move apartments, and when we got our new apartment they made our interest really high.”
Loans known as “sub-prime loans” come with a higher interest rate. A good way to improve a low credit score is to find out exactly what the debts are and what a persons credit stands at.
Those in debt should be sure to have a copy of each of the bills they owe.
In order to gather the required information, a copy of their debt bills can be solicited to the three major credit bureaus TransUnion, Experian and Equifax.
Once the person has the knowledge of their record they should accomodate their money to start paying bills.
Try to reduce the use of credit cards and keep the payments up to date.
“I only use my credit card for food and clothes,” said Roxana Vela, 19 child development. [I want] to keep my bills small.”