Getting Into Credit Trouble

While mounting interest charges and late fees can increase your debt and make it even harder to pay your bills on time, they aren’t the only problems caused by poor borrowing habits. For example, with poor borrowing habits:

• It may be hard to find a lender who is willing to give you a credit card or make you a loan, even if you need the money
• It will probably cost you more if you can borrow, since lenders usually charge higher rates of interest to borrowers who aren’t creditworthy

Did you ever wonder how lenders know you’ve got a money problem?

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