"Avoid having bad credit"

Having bad credit can ruin your life. It can prevent you from a lot of things. When you go borrow from lenders they take a look into your credit history and determine if you qualify for a loan. It can prevent you from renting a apartment or getting a loan for a house or a car. It can stop you from getting a student loan if you want to go to college. we usually make these mistakes when we are teenagers and some of us even make these mistakes as older adults. The problem you wanna avoid is having too much credit and unable to pay the lenders back when you made the promise of when you was going to repay them. So think before you get a loan or a credit card because it can become a serious issue in your adult life. When you owe to these lenders they will get their money way or another even if it mean to garnish your wages and when they garnish your wages it makes your life even more complicated on your fixed budget.

What causes bad credit. I have 3 reason what can land you in trouble when it comes to your credit.

1.Making late payments on a credit card causes bad credit. Each time a payment is late, it is reported to the credit bureaus. Lenders are more likely to lend money to someone who has no late payments on their credit report than to someone who had late payments in the past.

2. Delinquency is another reason for bad credit. It is always wise to contact your bank or credit company if you are unable to make a payment on time. Past due payments will eventually go into collections, which can negatively impact your credit score.

3. Going over the credit limit on a credit card cab cause bad credit. When a credit limit is exceeded, monthly payments will increase. It is best to always check the available credit card, and stay below it.

I well all see those commercials claiming they can fix your credit. Well no one can legally remove accurate and timely negative information from your credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. there is no charge for this. Some people hire a company to investigate on their behalf, but anything a credit repair clinic can do legally, you can do for yourself at little or no cost. According to the credit reporting act (FCRA).

Interest rates is the price a borrower (you) pays for the use of money they borrow (you) from a lender (banks), for instance a small company might borrow capital (cash) from a bank to buy assets for their business, and the return a lender receives for deferring the use of funds, by lending it to the borrow (you). Interests rates are fundamental to a capitalist society.
These interest Rates can change also :

Deferred consumption: when money is loaned the lender delays spending the money on consumption goods. Since according to time preference theory people prefer goods now to goods later, in a free market there will be a positive interest rate

Inflationary expectations
Most economies generally exhibit inflation, meaning a given amount of money buys fewer goods in the future than it will now. The borrow needs to compensate the lender for this

Alternative investments
The lender has a choice between using his money in different investments if he chooses one, he forgoes the return from all the others. Different investments effectively compete for funds.

Risk of investments
There is always a risk that the borrower will go bankrupt, abscond, or otherwise default on the loan. this means that a lender generally charges at risk premium to ensure that, across his investments, he is compensated for those that fail.