With every stroll to the mailbox you are sure to find a couple of pre-approved credit card applications waiting on you, I get them too. It does not seem to matter if your credit profile is terrible or you do not have any credit history at all, they still fill your mailbox on a regular basis. And believe it or not, if you ever file for bankruptcy you will begin to get even more of these than ever before.
Credit card companies are experts in credit temptation, and make it much to easy for us to get the credit cards and then to use them to make purchases. During this spending spree it may not seem as if we are actually spending real money, it really does not feel like we are doing wrong until the bill arrives. It takes a certain amount of self discipline not to put ourselves back into credit card debt situations that are to much to handle. We must resist!
We should all try to have a good credit profile, and usually when someone wants to begin to establish good credit we are told to apply for a credit card. Then we are told to use it wisely, pay your bill on time, and do not exceed your credit limit. The main thing that is not told to us is the speed in which we will reach our credit limit, or how easy it is to forget the first monthly payment. Credit card debt is very hard to control once you have gotten behind on your payments. Credit card companies will usually offer you a reduced interest rate for a set period of time once you have been approved. If for some reason you reach your credit limit, make a late payment, or not send in the amount due the interest rate is increased. It will sometimes be increased up to as much as 20 to 30 percent, this will also include late payment fees and over limit fees. Now all of a sudden you are getting bad credit reports turned in and now may have made matter much worse than before you got that first credit card.
During these financially hard times abusing credit cards is a very easy thing to do, cash is tight and you will find yourself using your credit cards for everyday living expenses. This type of spending can cause you to reach your credit limit reasonably quickly. If for some reason you do not make your payments timely, the credit card companies will then run credit reports to verify your mailing address or other information. And remember each time someone inquires about your credit history it makes you seem like a higher credit risk which has an adverse effect on your credit rating. Having a less than stellar credit profile may make it difficult to rent and apartment, purchase a car, and getting a job that may require a background check.
Having the option to make purchases with plastic is a normal part of our society today, it is convenient and to a certain extent safer. But next time use your debit card and not your credit card, this is money that you already have, and does not have any interest associated with it. When we make the decision to acquire more credit we sometimes end up making things that much worse. There are long term risks that accompany credit card debt, but if used wisely you will be able to build a credit profile that will bring you solutions and not bring problems.
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