Bad credit can teach many lessons. When having bad credit you are no longer able to borrow without a co-signer. There some positives to having bad credit believe or not and I want to touch on them. Having a bad credit improves your habits if you take a positive approach. Positives of having bad credit are no one will ask for your credit, no one will try to steal your credit, you can spend your money on cash only investments, you can pay what you need to pay and etc.
No one will ask you for your credit
When you have bad credit no one is going to ask for credit. You will not be able to finance anything without a co-signer, but that can be a good thing in terms of curbing your urge to finance. When you have poor credit you can control what debts you want to pay down since you will have anyone asking you for favors in terms of credit. You can strive to AAA credit at your own peril, but with the economy in the shape that is in you run the risk of identity theft. I’m not encouraging you to sabotage your credit if you have good credit, but if you have poor credit take your time rebuilding your credit rating.
No one will try to steal your credit
You will save money with identity theft programs because you an unlikely target. Having poor credit does not safeguard you from theft, but it does create an illusion. I.E If you have poor credit it does not always equate with lack of funds. If you are a victim of identity theft you have the funds to take legal action. It is a good idea to make sure you check your credit report twice a year at bare minimum. Personally, I like to check my credit quarterly.
Cash only investments
When you do not have the ability to finance on your own you will naturally find alternative ways. Most people are not going to co-sign with someone without some type of guarantee. An alternative is work on saving habits if you can save money to buy something upfront you save yourself the hassle of managing debt. Once you have everything you need in life such as a house or car why do you need to have top notch credit. If you want to send your kids to school help them get grants and scholarships. Cash only investments helps with feeling the impact of a bad investment. if you worked hard to acquire an investment and lose it I guarantee you will start becoming cautious with your money.
Paying off debt at your own pace
When you have bad credit and no longer need credit you can pay what you need to pay off at your own pace. Paying off debt just spend more does not make any sense. Financial paralysis is a good thing when changing your spending habits. Once your debtors are paid make sure you close accounts. Experts say that closing accounts hurt your credit score, but with the right financial strategy it can work.
There are many ways to learn from bad debt. I am by no means a qualified financial expert, but these are benchmarks for seeking professional advice. Good luck!