Teens and Credit Card Debt - What You Don’t Know Will Hurt You
When you carry a credit card or two, it is nice to know you have that cushion if you should need anything important and don’t have cash with you. However, many teens think that a credit card is a simple way to get what you want right now and worry about paying for it later. Here is some important information on teens and credit card debt as well as the things you might not know about credit cards.
Your Credit Score -
If you don’t pay down your credit card debt or if you carry a high balance with late or slow payments - it can affect your credit score. Basically, your credit score is a ranking that the three major credit bureaus (TransUnion, Experian and Equifax) keep on you which places your ability to pay your bills on a scale. An average credit score is around 600 and below that is poor while above that may be good or excellent. Most companies will check your credit score before giving you a loan, financing or even letting you open an account with them. If your credit score is poor, you will most likely be turned down and there’s no better way to receive a poor credit score than to have a ton of credit card debt.
Interest -
When you have a credit card balance, you rack up the interest on that balance. For instance, if your credit card has a 14% interest rate (which is around normal for teenagers), and a balance of $200 - your minimum monthly payment may only be taking care of the interest. This means that the actual debt you owe is not being paid down at all. So, these credit card companies are only making money from the money that you owe them. There are some individuals who have so much credit card debt that if they pay the minimum payment every month, they will not have it paid off in their lifetime! This is a huge responsibility to take on and you should take it very seriously.
Your Future -
Bad debt and a poor credit rating can damage your chances of purchasing a home in the future, a car or anything else you may need to get financed for. In fact, depending upon what your planned profession is - it can affect that! Most individuals who apply for financial jobs or jobs where they will come into contact with company money must undergo a credit check first. If your credit is low, you will most likely be turned down for the job! Learning responsible credit card handling now can set you up for a good future while a lot of bad debt can set you up for a lot of disappointments!
While it may be necessary to have a credit card for emergencies or in order to build your credit, don’t think of it as free money. You will definitely have to face the music sooner or later! Only purchase things with your credit card when you have the money to pay the balance in full at the end of the month. If you take care of your credit and debt now, you will thank yourself down the road.
Are you sick and tired of being in debt? Do you desperately want to get rid of your college debt and take control of your finances? Well, now you can. Learn the proven secrets to pay off your college debt quickly and painlessly with the money you already make. Visit http://www.nodebtinthree.info and get rid of debt today.
Kristiana_Jones
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