A man heard from friends (ah gao ah neow) that getting more loans will help him with his credit rating and he took it literally.
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My friend said that the credit rating report… will determine how much loan I can get from the bank, He suggested me to apply for credit cards and a loan from the bank.
End up I in debt, he never tell me that if I even missed one payment I will be penalised. Now I am in debt as I did not calculate the proper amount of loans and credit card spending I can use per month.
I really regret listening to my friend for taking the loans and credit cards.
Sometimes, I dono is i stupid or my friend stupid. Maybe i stupid. I no sure. When it comes to dealing with money, it is important to seek out advice from a knowledgeable and experienced person. Unfortunately, I didn’t do that when it came to making decisions about my credit rating. Instead, I listened to my friend who told me that I could get a better rating if I had more loans and ended up in debt.
It seemed like a good idea at the time as I wanted to have a higher credit score. Little did I know that by taking out more loans and credit cards, I was only going to end up in a worse financial situation.
It’s easy to think that having more loans and credit cards will give you a better credit rating, but this isn’t necessarily the case. In reality, having too much debt can make it difficult to pay your bills on time, which can have a negative impact on your credit score. Plus, if you miss a payment or make a late payment, it can stay on your credit report for up to seven years, which can affect your ability to get a loan or credit card in the future.
Taking out more loans and credit cards can also be a financial burden. If you don’t budget carefully, you could end up paying more in interest than you can afford. This can lead to further financial difficulties, such as late payments, debt collection, and even bankruptcy.