Credit is an Illusion, Definitely a Hoax
Credit is a hoax, definitely an illusion of security and a valuable resource.
What do we really need Credit for?
It definitely should not be used for everyday essentials. It builds a false sense of hope and as soon as it's not handled properly either due to negligence or unforeseen events the detriment to ones live can be Irreparable.
Even though Credit repair exist, the only way it works is if due diligence is applied regularly, constant credit monitoring, response sible spending, or if Life never has any Unforseen events.
What's Good about credit? What's bad about credit?
Good debt vs Bad debt
Good debt
- Purchasing clothing for work or school is OK debt. Saving for these items are better ways to conserve your resources.
- It's harder to save for a home or vehicle, to be paid in full with cash/check. So buying a home and a vehicle that promotes revenue growth makes the purchase Good debt. For instance using your vehicle to make more money, like with Uber Eats or any type of legitimate delivery service.
- Or using your home as an in home office to Start a business.
- Education and training, using credit, is only a good debt if the consumer is able to capitalize from educational pursuits.
Bad debt
- Maxing out a Credit card for inessential purchases -non profit producing. Everyday purchases like gas and food should be avoided. Never max out a Credit card, the interest can add up quickly making the purchase a detriment to health of a person's Credit rating.
The many reasons that affect a Credit report or score can be found on the various Credit bureau sites: Experian, Equifax and TransUnion.
- Prepaid cards and Debt cards are better because they don't reflect on your Credit report and do not affect your Credit score. To misuse a checking account you can end up in Chexsystem. But any loans from a Bank or a reporting loan entity will effect the Credit report and score for good/bad, depends on the Due diligence of the Account holder and how unforseen life events are handled by the Card holder.
In conclusion,
Credit can only be GOOD when paid back regularly. And credit is bad because it can never be truly repaired without life Unforseen events taking a rest- the red tape within the Credit laws prevents the World of Credit and Credit repair to be anything but a hoax and an illusion for Consumers.
Please leave a comment and let us know what you think about the Credit World?
Recent Comments
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The way I feel we live in a credit based world. You are right, if you pay off your debt in a timely fashion no problem, the credit companies even encourage you by upgrading your rating. You may have the unfortunate accident, and now you are disabled. You are now living in a nightmare of debt.
It has been said that "He who has the Gold makes the rules"! Other good debt is education and training, can we also say that going into debt to buy WA is good debt? I have bought into it with faith that it will eventually will pay me a good return on my investment! Thanks for your post!
Any debt ventured into to make money is a good debt.... And you are right education and training is good debt...I plan to update this post later...
Thanx for commenting and the reminder that education is good debt. But only when turn education used is applied professionally. Meaning the education acquired is used to make money...
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I learned all this the hard way haha!
Damo
Me too...lol
Thank you for the comment and reading..