Have you ever been late in making a payment to a lender or a creditor? If so, you might be familiar with the dire consequences of late payments.
From late fees to a hit to your credit score to a negative mark on your credit report, the consequences of late payments are anything but fun, and they can pack quite a punch.
I got my first credit card when I was 17. It was a Visa and I had a $2,000 limit. I thought I had it made. $2,000! That was so much money! What would I even spend that much money on?
I kept that card for 5 years and I used it in very responsible ways, and then in only semi-responsible ways.
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Last week, we talked about why your credit score is important, and what it can do for you. This week, we’re taking a look at how you can improve your score if you’re just now becoming aware of it.
All in all, it’s not a hard or complicated process, but it does take some time to see improvements. Unless you make a few drastic changes, you’re looking at taking a few months to a year to make amazing progress.
It’s a simple question with huge implications. Your credit score tells lenders whether or not to lend to you.
It also determines what kind of interest rates you’ll receive on any loans you apply for (car and mortgage, most importantly). It can determine whether or not you get an apartment. It can even determine whether or not you get hired.
I live with three housemates. Three of us also have significant others, meaning there are seven people in and out of my house regularly.
Of those seven people, five of us have some kind of debt: student loans, credit cards or a mortgage. Sadly, our numbers reflect the average American: the average American household carries $15,611 in credit card debt, $155,192 in mortgage debt, and $32,264 in student loan debt.
Despite the fact that everyone seems to have some kind of debt, debt is not normal.
