Credit Master’s Tip #3 – Stop getting high-interest loans for building credit’s sake, or for any reason as far as that goes.

  1. There are way better and way cheaper score building loans that are easy to get.
  2. Your credit score gets dinged for having consumer finance company accounts. These companies cash in on your fears to sell you something that is good for them and bad for you. Stop doing it or don’t do it. You have other, better options re-read
  3. The fact that you have a consumer finance company loan on your credit report means that you represent a higher risk to lenders than someone with no consumer finance loans. Even if this account is closed and paid on time, it will still lower your credit score.

High-interest loan companies capitalize on your lack of consumer savvy and trick you into trashing your credit with expensive loans while they are telling you they are helping your credit. I have seen credit report after credit report that had pages of high-interest loans; many had been doing this nonstop for several years.

Each one of those loans represented hundreds of dollars in overpaid interest. So unnecessary, considering anyone can have all the score building credit they need for $60 per year total. Stop for a minute and consider first the amount of money you have wasted on high-interest loans and questionable decision making. If you are honest with yourself, it will probably make you feel a little queasy.

If you have questions about anything concerning credit or consumer finance use my contact page and send me the question.