Posted: May 3rd, 2016

Who’s going to pay those extra monthly bills if it’s not the credit cards?

Individuals can be denied credit for a number of reasons. Individuals who are near limits on existing cards, have too much outstanding debt or too many accounts overall, have a history of late payments, charge-offs or bankruptcy are likely to be denied credit. Individuals denied credit, by law, will receive a letter documenting the reason for the denial under the Fair Credit Reporting Act. Individuals who receive that letter should then examine the reasons for the denial and make efforts to correct their credit.
Most consumers understand that a good credit score is vital to one’s financial security and stability. Many people may not understand how a credit score is calculated. Payment history accounts for roughly 35% of one’s overall score. This means that on-time payments are absolutely essential. Debt level is not far behind at 30%. This accounts for near-limits and the total amount of money owed. Length of credit history is next at 15%, followed by inquiries at 10% and mix of credit at 10%.
Avoiding and managing debt is hard. Things cost so much money that it’s hard not to spend more than you make. The bills pile up, the utilities cost a lot, and going to the grocery store is expensive too. Then once those bills are paid, someone in the family gets hurt and needs to go the doctor or an unexpected bill comes in like car tags or something. We are told to just use cash and not use credit cards to help stay out of debt. Who’s going to pay those extra monthly bills if it’s not the credit cards? Avoiding and managing debit is too hard.