It’s commonly known and generally accepted that banks, credit card issuers, auto lenders, credit unions and finance companies see your credit reports when you apply for a credit benefit. But what many people don’t realize is that other entities have the ability to see your credit reports and do so enjoying the protection of the Fair Credit Reporting Act.
Do you buy a $1,000,000 home when you can only afford a $150,000 townhouse? Then why in the world would you ever let your 18-year-old kid, who is no longer allowed to get a measly credit card on their own, to walk blindly down the path of financial suicide just to go to an expensive school?
The seven deadly credit sins: they all represent some form of default on a credit obligation. And while this is certainly not an exhaustive list of items that can damage your FICO scores, it’s a very good list to avoid.
But one thing is certain: we adults have always had the right to apply for, open and use credit cards as we saw fit so long as we were old enough to sign a contract, which we can do when we’re 18. Thanks to some, we now no longer enjoy the privilege to make up our own minds on this matter.
The almighty credit score. It determines your interest rates, insurance premiums, and, you’ve probably read in one too many articles or seen on the news, your score could even affect an employer’s decision to offer you a job. It’s a scary statement. But is it really true?
Just a few false moves, and in no time, your credit reputation starts to suffer. It doesn’t even need to be something extreme, either. Just a late bill payment here or a retail splurge there is all it takes. Woe to the consumers who make a few missteps in a row and find themselves slogging through suboptimal loans (high rates, high fees) the next time they’re shopping for credit.