A good credit score makes your life better.
With good credit, you will find it easier to qualify for loan, will pay less to borrow money and won’t have to worry about credit checks for a job or apartment rental.
While good credit is almost always an advantage, it does come with a few small disadvantages you should be aware of.
Constant marketing for new accounts
Credit card companies love customers with good credit scores. This is because people with good credit rarely default on their bills, which makes them more profitable cardholders.
If you are one of the few people with a good score, credit card companies will be aggressively marketing to you.
You will see a nonstop flow of credit card applications in the mail, while banks and stores will constantly be asking you to sign up for a cards.
“This can be a bit
of a nuisance.”
Temptation to overspend on credit
When you are new to the world of credit, lenders will not be willing to give you too much money.
As you build trust by improving your credit score, you will soon be able to borrow more.
Your credit card company might increase the limit on your cards, while your bank might extend you a line of credit.
This new purchasing power can be a big temptation. After all, now you have the ability to spend thousands of dollars you could not before.
It is important to stay responsible and not overspend if you want to keep your good credit.
Pressure from others to cosign loans
It is hard to qualify for loans without a good credit score. You will not have this problem, but your friends and family members might be stuck.
In this case, they may come to you for help and ask you to cosign a loan. This is a tough situation because then you are backing up another person’s loan with your credit.
If they miss payments, your score is going to take a hit as well and you could be held liable for paying back the money.
While it is nice to be able to help others, this is a decision you need to take very seriously.
While the disadvantages of a good credit score can be a little annoying, they really aren’t serious problems. Always work to keep a good credit score because the problems that come with a bad score are much, much worse.
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