Credit is an important financial tool. Having good credit can help you obtain many important loans (such as car loans and home loans) and can also help you save money by way of lower interest rates. In addition to obtaining loans, a good credit score can help you get a job. Many companies now check a potential employee’s credit score. Therefore, if your credit score is good, you need not worry about such an inquiry.
Although having good credit can give you these advantages, having bad credit can severely damage your financial situation. As such, many people believe credit to be an evil thing set up by the powers in the United States in order to exploit and control the masses. Unfortunately for these people, this is simply not true. Credit is a tool and that is it. You do not have to obtain credit in order to financially survive, nor are you forced to obtain the same. Additionally, credit is completely harmless as long as you do not abuse it. This is not different from anything else in the world. Any financial resource can be detrimental if you abuse it and thus, there is nothing different about credit.
The biggest mistake that people make after they obtain credit is thinking that they now have an unlimited bank account. People spend and spend without thought that such expenditures need to be repaid. As such, when the bills come rolling in, these people are unable to pay them. As such, all of the financial troubles begin. It is because of this common pattern that credit cards have a bad reputation. However, because people are responsible for their own financial fates, I do not believe that credit cards are the culprit.
People that engage in the behavior discussed above have proven that they are irresponsible when it comes to money management. As such, if the person did not have a credit card, he/she would have found some other financial tool to abuse. Therefore, credit cards are not to blame for the financial instability of people who have credit card debt.
This is not to say that credit card companies are completely innocent in this picture. Many people are uneducated about certain credit cards yet the credit card industry does little to educate people about the same. Additionally, some credit card companies impose some very dubious fees. As such, some credit card companies have taken advantage of some people. However, on the whole, the biggest reason for credit card problems has occurred due to people’s own misuse of credit.
The point is, if you use credit correctly, you will have nothing to worry about. As such, you should utilize this powerful financial tool to your advantage.