3 Ways People Abuse Credit

Credit abuse; it’s not likely to make the papers or end up in a courtroom (even though it can), but it’s a chronic issue in the United States today. The issue is exacerbated by the fact that even our government is billions of dollars in debt and continues to dig itself further into it! Seems like a lot of people abuse what credit they have, and their credit scores are lackluster because of it. Today, we’re going to explore three of the ways that people abuse credit and what we can do about each of them.

  1. They try to live off of it. Please don’t do this, ever! Some people use their credit as a rolling source of income, and it’s not actual money. When this happens, those same people are wasting hundreds of dollars throughout their lifetimes because of extra fees and the insane amounts of interest. It also demolishes your credit score; making heavy use of your available credit and maxing out your credit cards results in a lot of red marks that lower your overall score. Instead of living off of it, why don’t you consider adjusting your budget (which often means adjusting your lifestyle a well) and cutting costs so you don’t feel like you have to live off of your credit?
  2. They try to hide stuff with it. This is one of the saddest things that people do to abuse credit. Many times, instead of using a bank account that a spouse or loved one would have access to, someone will use a credit card that only they have access to in order to hide an addiction or affair. It’s usually a sign that, whatever the situation is, it’s gotten out of control and help is needed in order to get out of it. If this is you, please talk to your loved ones and seek out help before it becomes bigger of a mess than it already is.
  3. They avoid it entirely. You’ve never owed a dime in your life. That’s great, but what if you end up in some situation where you would need to, like in the case of buying a home? Unless you’re going to be saving money and living in an apartment for 20+ years (which, some people do, and that’s okay), you’re going to have to borrow something. Then, they’ll look at your credit score and it really won’t be that great because there’s nothing there. A lot of people avoid it because they’re afraid of abusing it, but avoiding it is just going to make that problem worse in the long run. If this is you, consider getting a credit card with your bank or credit union and utilizing it on occasion, paying it off immediately when you do. This allows you to build a credit history and also helps you be more comfortable with the idea of having credit.

So, don’t abuse or neglect credit. In the long run, it’ll end up destroying you if you don’t change whatever bad credit habit you have now. Have a great weekend!

  1. It’s really tempting to buy stuff if when you have credit cards, I for one try to avoid it as much as I can and use it whenever it is necessary. I have heard lots stories where people ends up having lots of debt because of it so i try to be more practical in using it.

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