Triathlon Phones

Bad credit - How did you get there?

Up until now, your bad credit rating has stopped you from securing many contracts, including one for an elusive mobile phone. Well, that’s till we came along and helped over 95% of our client’s in their bid for a mobile phone contract.

But enough of that, you know what we do. Surprisingly, many people have no clue how they did. They try to correct their bad credit record, but because they have no idea where to start or what caused it, they are following a fruitless pursuit. Let’s take a look at what contributes towards bad credit status.

Credit card debt

Most poor credit records start with credit card debt. Now make no mistake, credit cards can be a great product if used correctly. For example, in a time of financial emergency. They should not be used to buy yourself a new HD television just because the neighbours have one. Maxing out your credit card is never a great idea. If you do, you will start to be flagged as a potential bad credit target. Unfortunately, many people spend and spend on their credit cards without even knowing if they will be able to pay back the amount the banks demand monthly.

Cost of living

Since the financial crash of 2008, the world has become an expensive place to live. The cost of living continues to rise at an alarming rate and there doesn’t seem to be any relief in sight. This should impact how people live from day to day and see them cut back. Unfortunately, this doesn’t happen.

Instead of trying to save money, many carry on as before. Eventually, credit cards, once used to buy luxuries, are now needed to buy food. The downward spiral has really set in and it is very difficult to get out of at this point.

Late credit card payments

Once all these factors come to the fore, there is just not enough money to go around to feed your family and pay all your various bills. Soon, bills are paid later or skipped altogether. This often starts with the credit card, loan repayments or other monthly contracts. Not only will your credit rating dip alarmingly, but there will be numerous penalty fees added to it. These place a further huge financial strain on your family.

Credit limits

Credit limits on credit cards are there for a reason and should be adhered to. Exceeding them reflects badly on your credit report, further resulting in a poor credit record. The bank may also increase your monthly fees should you continue to exceed credit limits.