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In what ways is credit detrimental or useful?

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2005-10-20 00:21:28
2005-10-20 00:21:28

Credit can definitely be a double edged sword. When you want to buy a car or a home, a loan is needed most of time. Lately, many companies have taken to running a credit check on potential employees, to see if there is anything that may show a possible reason why someone may be more inclined to theft or fraud. When signing up for credit cards, or bank accounts or even some utilities such as cell phones or cable tv, companies will check your credit worthiness, so YES, credit and in particular, GOOD credit is very important today. Having too many revolving credit lines such as credti cards or home equity lines can be considered BAD. An individual should only have a certain percentage of one's yearly income available to them in credit. Any more than that can be considered a big risk for creditors because you could run them all to their limit and then default or declare bankruptcy. Bad credit is the worst. Not paying on time can affect your ability to function today. Just look at all the things in the first paragraph that you need credit for and imagine not having them.

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