Fix My Finances

Many people try to fix finances by going into debt to improve their credit score. They think that the more credit cards they have; the better. This is not the case at all. Having a lot of debt in comparison to what you make is not a good thing. In fact, it will only serve to hurt your credit score and you end up paying a great deal of money in interest.

If you can afford to pay a large down payment on an item, such as a car, do so. Taking out a car loan just to improve your credit score is a recipe for disaster. You cannot fix finances by adding more debt to your current debt. This ends up digging you further and further into debt and risking an even lower credit score.

Joyce Priddy wrote this on May 14th, 2008 and filed it under Credit Card Debt, Debt, Fix My Finances |