You’ve Got Mail
“Congratulations you have been approved for (an outrageous credit limit) based on your credit score!” We’ve all been there, opening a crisp envelope and seeing that shiny piece of plastic. Before you know it, you’re calling to activate and accept this mysterious gift. A trip is made to the mall, and without hesitation that piece of plastic starts depreciating in value. This marks the beginning of the history of bad credit in Houston.
Houston we have a problem; Bad Credit
Every purchase is just an IOU to the credit card company with an added 1-22% interest. In the life of a shopaholic, it doesn’t matter when it comes to that brand new pair of shoes. Debt slowly starts to creep in as the shopping addiction increases. It’s a euphoric feeling once the card is swiped and the transaction goes through. Like a brand new car riding off the lot, a credit card can easily depreciate in value, depending on the interest rate.
Facts About The Bad Credit Houston Shopping Addiction
Shopaholics are usually impulse buyers. Most likely something has to trigger the impulse to shop. In most cases it is the empowerment they gain when given the opportunity to shop without worrying about the bill at that moment. Most credit cards build a consumer’s credit score if they are properly used. Bad credit in Houston is usually a result of consumers carrying a high balance on their revolving accounts. Many times anxious consumers may pay the credit card 30 days late or completely forget about the credit card bill. When this happens, the credit card is sent to collections and the bad credit pattern begins.
How do I avoid bad credit in Houston?
Credit cards can be a valuable tool to build and maintain an impeccable credit score when they are used and maintained properly! A credit union is a good source for secured or unsecured credit cards. As their money is “for the people, by the people”, they do not have ridiculous interest rates and fees.
Say No To High Fees On Credit Cards
If you have little or no credit, do not apply for credit cards with high fees for a small unsecured credit limit. You are better off getting some secured credit cards as you begin building your credit. Later as you establish credit, you may apply for unsecured credit cards with no fees.
As a recovering shopaholic, the key to success is not to cut off all shopping sprees, but to shop responsibly. Do not spend more than you can afford, even if it is on a credit card. A good rule of thumb is to be able to pay off the credit card within 30 days. This way you will not be accumulating interest on the balance. If paying off the balance within 30 days is not an option, after charging up your card, put it away until it is paid off. Some may even consider freezing their credit cards. The goal is to avoid debt over something like a pair of shoes and to be able to be in control of your financial future and success. Avoid maxing out credit cards and if possible, do not use high fee credit cards that will eventually lead to financial disaster.