I’ll show you how easy it is to ruin your credit or establish lousy credit. Credit card companies prey on college students. Got to any college campus and you can find someone pushing their companies credit card to students. College students have their choice of credit cards and often end up with more than one. Being out on their own for the first time never having to manage money coupled with readily available credit can be a huge plus when trying to build bad credit.
A poor credit history can hurt a students chances of landing that dream job. Bad credit can keep you from being able to rent an apartment or house. You’ll get to pay more for insurance and utility companies will probably require a deposit before providing you service.
The fastest road to bad credit is to make you payments late or better yet not at all. Nothing says “I’m totally irresponsible” better than failing to meet your financial obligations in a timely manner.
Spending over your cards credit limit is another great way to lower that credit score. When you exceed the limit you can be sure the credit card company is going to raise your interest rate dramatically.
Always keep a balance and never pay it off. Also make sure that your balance is always a high percentage of your available credit. Keeping the balance high will assure a poor credit score.
When you are dead broke use that cash advance feature of you card and use regularly. Can’t make ends meet at the end of the month, use your credit card to make up the difference. This technique for lowering your credit score provides another great benefit because your credit card company is going to charge you a boatload interest effectively increasing your cards balance.
Take advantage of every new card offer and transfer your balances. The key here is to make sure you close the card you transferred from as this will negatively affect your credit. As an added negative bonus you can make sure that each successive card has a higher interest rate.
As you can see by doing just a few simple things your credit will be trashed in no time. All joking aside, you should now understand exactly how to establish good credit by doing just the opposite of what I have told you to do above.
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