Most adults are pretty free to make decisions about how they want to live their lives. They choose where they want to live, the kind of work they want to do and are free to pursue the amount of income they want. But some decisions are made for us. The choice to have credit or not is one of them.
You are told that you have a credit report, not because you wanted it. You didn’t contact the credit bureau and ask them to compile a history of your financial activities over the years. People you do not know have quietly submitted personal information about you and collected this data completely without your consent. Then they freely give to anyone who asks, all without your knowledge.
In most cases, the only time you learn about your negative credit report is when you try to make a purchase or something on your own or when you find out that your credit has already been compromised. And once you’ve struggled with the backlash, experienced all the doors slammed your face, you might even begin to wonder why you should bother at all 먹튀검증.
The fact is we live in a society that runs on promises of the future. In fact, our world has created so many obstacles that if you don’t have it, it feels like punishment. It separates you from the rest of the community in many ways.
Beyond that, credit is a means of managing your life. Many benefits are to be gained by having credit. People often wonder if it is worth it to have credit. They want to know why we need credit. However, as we’ve already established, we all have some type of credit whether we want it or not. It is only negative credit that makes life difficult.
Why It Matters
When it comes to making purchases, credit is the primary way that goods are paid for. In this regard, it is an important part of life everyone’s life. People use credit cards even when they don’t need to, not just because of the convenience and the protection that credit offers.
It is much safer to carry around a credit card than cash when you’re out shopping. If your card is stolen, a quick call to the bank and everything is replaced. If your cash is stolen, it’s never coming back. But having credit goes further than just a replacement for cash.
It Offers Financial Privileges: More and more often, businesses are withholding special benefits to those who do not have good credit. Your credit gives the rest of the world a picture of your financial health, so they have a good idea of what kind of person you are. With good credit, you can…
Purchase a home: Unless you plan on paying cash for large ticket items like a home or a car, you will need to use credit. While you can make some big-ticket purchases with poor credit, it is going to cost you a lot more. You’ll have to pay more interest on the monthly payments. You’ll pay more to insure those items, and they will be less forgiving if something happens and you cannot make a payment.
Even if you’re not planning to make an immediate purchase, your credit matters. You are often prevented from renting cars, apartments, homes, or equipment when you need them.
Employers now conduct credit checks before they decide if you are trustworthy enough to work in their company. They feel that if you have proven yourself to be financially responsible, you can be responsible enough to handle their assets. They also look at the salary they are offering. If your level of debt is higher than expected for their proposed salary, they may feel you are a risk. Your credit score could prevent you from getting a raise or a promotion as well.
When it comes to getting utilities in your home, you may have difficulty if you don’t have a good credit score. You may have to pay a substantial deposit, or you may have to ask someone else to get the lights turned on in your home or apartment.
Unfortunately, almost every aspect of our lives is defined by that same credit score that strangers compile for us, and anyone that wants to do business with us will be focused on our credit and not the kind of person we really are at heart. They don’t care that you missed a few payments because you lost your job, or you were in an accident of some kind. They won’t care if you now have a new career, or you’ve just won the lottery. All that matters to them is that mysterious FICO score and what it tells them about you.
Life Without Credit
When you consider that the average American family spends more than $63,000 a year just to meet their basic needs, you can easily understand why credit is so important. However, If you think you can go back to the days of old and live a life 100% credit free you’d be surprised at how difficult it can be. You will find yourself facing even more challenges than you might imagine.
It is a subject that we rarely think about. The world runs on credit, and there is little that can be done about it. Aside from the obvious, mortgages, and auto loans, there are other things that we rely on that are difficult to get without a good credit history.
Nearly every business you deal with will demand credit in some form or another. Even going on vacation without credit is almost impossible. Most hotels now require a credit card even if you plan to pay in cash, and if you want to reserve any activity (tours, recreational events, or even concerts), you will inevitably be asked for a credit card.
Everyone walks around with a cell phone these days. Without a smartphone to connect you to the Internet, you could miss out on a world of opportunities.
Negative credit also makes you feel as if you have never grown up. In our society, a good FICO score is the equivalent as a measure of maturity. It is the evidence that is put before authority figures and rejection feels like a harsh reprimand for not fitting in and following the rules.
Even if you have a good job and are making a decent salary, credit can still hold you back. This impact extends to the psychological level, and you begin to think that it won’t matter how good a person you are, how hard you work, or how committed you are to other responsibilities in life that you find you are still not accepted in most circles. The best you can hope for in such circumstances is a circle of friends who do know the kind of person you are and are willing to co-sign for you to get those special privileges. Still, it feels like the ultimate humiliation to go through life struggling to be accepted just because of your credit score.
On a more social level, it causes divisions in your relationships and creates an imbalance of power. This underlying feeling of distrust extends beyond your creditors, but it can affect your personal relationships as well. The struggles you will have with your spouse, your parents, your friends, etc. It can be embarrassing, to say the least, to go to any one of them to ask for money or a loan when you can’t get the credit yourself.
Bottom line, while it is possible to go through life without credit, it can be so much better when you have it. This doesn’t mean that you need to go out and get into debt. Many people confuse having credit with debt, but these are two different things. Having an established line of credit does not necessarily mean that you must go into debt to keep it. Learning the difference between the two is one of the first things you do when you have a good level of credit management. But even before you can do that, it is important for you to understand that credit report and how it can affect your life.