We all live in a culture of borrowing first and then paying later after we have spent. Whether this is by nature or by design it is not known, but we will all agree that definitely there is something that is so enticing about a loan that most of us cannot resist. Your spending with your credit cards is a loan in its own right and it is from how good or bad you have been paying up your bills that will determine whether any lender will give you money in future. Bad credit history is made when you are always late in paying your credit card bills or when you skip some payments altogether. This affects your credit card score badly. When you apply for a loan from a lender, they are entitled by the law to see your credit history. If it is not good then you will:
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1. Get a lesser amount than you requested
2. Be denied funds after all
3. Be given the funds, but at a high interest rate than normal.
A person who has good credit history will on the other hand be served with a loan of their asking promptly and at a lower interest rate than you. Holders of good credit history are also accorded the best terms of service concerning a loan payment and therefore, they stand on firmer ground financially. It is true that one can always go for a bad credit loan because such have been put into place to cater for people with bad credit, but there is nothing to smile about it at all. They fetch high interest rates;
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