Bad Credit Truth

Imagine you are driving buy a big car sales superstore, every one has at least one by them.  So you are driving by, and you have this jalopy that you were given when you were sixteen by your grandmother.  You are now 24.  The car is rusting out, there are a few unknown rattles that are coming from under the hood.  The car is blowing so much smoke out from the tailpipe, you can hardly see that eighteen wheeler behind you.  You look to your left and you see this ten by ten dot matrix screen that you can see from the moon displaying, “NO CREDIT, NO PROBLEMS!” or, “Bankruptcy, bad credit, you’re still approved!.

So many people get dragged into this marketing ploy, it’s not even funny.  You start to think, “Yeah, I need that new car, this one is not cutting it anymore!”  What you don’t understand is that, yeah you will be approved, but the interest rate will be so astronomically high, you will not be able to see all of the numbers on graphing calculator.  But, by the time you get to that point, you will start to make excuses for yourself to have this new car.

If you absolutely need that car.  Make sure you do your research first.  Contact the BBB (Better Business Bureau) and check if the dealer has had complaints filed against them.  What a lot of the time, shady car dealers will do, is inflate the cost of the car, and then knock some of the price tag off and then they make it look like you are getting a fantastic deal.  Then they will slap the high interest on the loan.  be careful with this one.  When you finance through a dealer, the dealer gets a cut of the finance.  So if you call the lender your self, you may be able to get a few percentage points off. Bad credit car loans are a bad idea as a whole.

All in all, make sure that you expense all avenues before going with the high interest car loan.  This can even ruin your credit more so than it was before.  One rule to go by, ALWAYS make sure you can afford it before you sign your signature on that line!

With all of the hype out there in this world today, there is a lot of pressure to have the biggest and the best.  You know the old saying, “Keeping up with the Joneses”.  When you see television commercials that have, “ACT NOW!”, 0% FINANCING!”, you say to yourself, “Wow, I think that I can have that.”  or “I think that is do-able.”

Well, In most cases, the answer to that question is going to be a no, you cannot afford it.  I think that the American people are just as at fault for the catastrophic  mess that the country is enveloped in as the lending companies that are always blamed.  i grew up in a family that always bought quality merchandise.  My parents philosophy was that you always get what you pay for.  Meaning, if you buy something on the cheap, then it is obviously not going to last long.  I think that most people have that same ideology, but the reasons are a bit skewed.  Its more used for showing off to the neighborhood of what you have, then actually doing it for economic reasons. My mother always had a good formula to combat impulse purchasing.  Give your self twenty four hours, and if you still want/need it , go and get it.

Most of the time, people would like to say woe is me, and it’ s not my fault for the situation I’m in.  People are always trying to make excuses on why it was out of their control.  In some instances, people have there identity stolen.  In this case, it would be very unfortunate for the individual.  In most cases, companies will advise you that your identity has been compromised, and they will offer free credit monitoring for you on your behalf.

All in all, your credit is all up to you.  It is your responsibility to be mature and pay your bills on time and come up with a budget with all of your expenses in mind.  It is easy to get caught up in the “hype” of the glitz and glamor of the world we live in.  Peel back that very thin silver lining, and all you get is empty promises.