Sunday, December 30, 2007

Getting into Bad credit and apply for loans

When do you get your first credit card? I got my first credit card right after I got into college. I was about 24 years old, still studying and only had a part time job. How did I get approved and get a credit card? That’s because my parents put 1 year of my college fees into my bank account and I sign up a credit card application just to get the free t-shirt. That’s how I get myself into spending the future money. Getting a credit card at that time is cool around friends. We even compare how many credit cards we can apply and how much limit we can get. By the end of the year each of us had about 3 credit cards with total limit of USD$8000. Yes, that’s right. End of the year means party and shopping time. I still remember that I bought myself a complete home theater sound system with a 29” TV. That’s how I get myself into working extra hours in my part time job just to pay the credit cards. It took me about a year to clear my credit cards bill.

That is why I know that if you’re not careful then you might get listed into bad credit records. I was lucky because I’m still able to pay it back little by little. Once you’re in the list it will be difficult to apply for credit cards and loans. It might be difficult but there are still some banks that will approve your application. Applying for bad credit loans is easy but you need to do more work on comparing the terms and conditions. You need to be extra careful this time because you don’t want to jump out from the hot pan into the fire. The least you need to confirm that you’re able to pay back the loan.

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