[P]eople have different views on credit and they handle it in various ways. It can be helpful to determine what your credit personality is so you can do a better job of managing it and avoiding temptation, which can get you in trouble. See if you identify with one of these people.
You like to shop; it’s a hobby for you and not just another task. You may be a bargain shopper, but you can justify purchases because of the money you save instead of what you’re spending. You can also justify why you buy something as “just in case.” You may have a closet full of clothes you’ve never worn or a large collection of CDs or DVDs.
The problem – Spenders rack up debt in a hurry with the idea of paying it off on payday. However, they see something else they like on payday and use that money to add to their purchases.
You like getting credit cards for the rewards they provide. You have one card that gives you points on the gas you buy, another one on groceries, while a third card gives you airline miles for every dollar you spend. Every time you get an offer for a new card in the mail with rewards, you just can’t help but apply. You also apply for store cards, which save you money on every purchase.
The problem – You have so many cards that you can’t keep track of due dates or the minimum amount to pay. You also tend to rack up debt so that you can gain more rewards, forgetting that the interest you pay offsets any benefits.
The Credit Avoider
You sit at the other end of the spectrum. You avoid credit like the plague. You may have had debt in the past and don’t want to go there again, or your parents may have instilled a cash-only policy in you. Either way, your motto is Cash Only, No Credit. You don’t own a credit card and you drive an old vehicle rather than getting a car loan.
The problem – If the time comes that you need credit or a loan, you won’t have a credit history to get approved. Even getting an apartment or renting a vehicle may be difficult without a credit rating.
[I]f you have a goal to improve your credit score for the new year, you need to set up steps to help you achieve this goal. For many, they read all kinds of information about how to get a good credit score, and it can be overwhelming. Sometimes, it can sound so easy but not […]
[T]here are three major credit reporting agencies: Experian, Equifax and TransUnion. All of them provide a credit report which lists your personal information and credit accounts. You can get one report for free each year or purchase extra reports through the agency sites. Many people just get one credit report, but you really should get […]
[A]s you get credit cards, you will notice they give you a credit limit. This is the maximum amount you can spend on the card without paying some of it off first. Credit card companies often increase your credit limit as you prove responsible handling the amount you have. You may wonder if more credit […]
[I]f you have bad credit, it can be difficult to qualify for a car loan. However, it’s not impossible. Before you go out and apply for money to purchase a vehicle, there are some things you should know. Check Your Credit Before you fill out any applications for car loans, you need to take a […]
[M]any people hear that they have bad credit, which means they haven’t always been responsible with their credit accounts. However, it is another situation entirely when a person is told they have no credit. You may wonder how that’s possible and what it really means for your future. No Credit Doesn’t Mean Never Any Credit […]
[T]ransUnion is one of the three credit bureaus which stores information about consumers and their credit history. It provides this information to creditors and to consumers. TransUnion was founded in 1968, and it now has more than 200 offices through the US and the world. How TransUnion is Different TransUnion is similar to the other […]
[E]quifax is one of the three major credit reporting agencies which provides information used on your credit report. It has a credit score which will impact your ability to get approved for new credit. All of these agencies aren’t the same, so here is some information you should know about Equifax. Equifax is headquartered out […]