Increasing access to credit allows one to have more than one credit at the same time. Especially at this time, there are credit providers who dare to give credit without credit checking. This often results in someone having bad credit. When someone has been hit by bad credit, the likelihood of the borrower being unable to pay credit is very high, as a result you will not stop being called by debt-collector.
How to avoid bad credit
Well, to avoid having bad credit, try to do the following things.
1. Avoid bad credit by avoiding RC Finance for consumptive needs
The most common cause of bad credit is because most people apply for credit for consumptive, not productive, needs. Productive is when credit is intended to support your work. For example, you run a cake business and need additional funds because of the large number of orders. New customers pay 30% DP, even though you have to pay the raw material to the vendor. In this situation, you may apply for a bank loan or RC Finance online because there is certainty that you are able to return RC Finance and even make a profit.
Consumptive is when you use credit for the spree, like buying the latest smartphone because you want to be seen in your social sphere, even though your old smartphone specifications are still relatively good.
2. Use credit according to your ability to pay
Before making credit, pay attention to the credit nominal that will be submitted. Never apply for credit beyond your ability to pay. Banks and several RC Finance online companies usually check the status of your credit payments through credit checking, both on and off. If the case is like this, chances are you will avoid adding new debt that will be burdensome. However, there are also RC Finance online who do not apply credit checking, so the possibility of your credit application will be approved. The risk is the possibility that you will not be able to pay the larger installments because you still have more than one credit in progress.
3. Pay credit installments on time
Paying credit installments on time can prevent you from the occurrence of bad credit. Not a few people forget to pay credit installments because they are too busy with their daily routine. To avoid forgetting to pay credit installments, you can make a reminder on the calendar, alarm, apply auto-debit, etc. The more diligently you pay credit installments, the better your performance before the bank or the company RC Finance online.
4. Cut costs that are not needed to avoid bad credit
If you already have credit that is still suitable or greater with your ability to pay installments, the thing you can do is to reduce your expenses. By reducing unnecessary costs from your list of expenses, you can save money so you can pay credit installments on time without causing bad credit.
Those are some things you can do to avoid bad credit. Try to be wiser in applying for credit and more responsible for paying credit. This will maintain your credibility in the banking world, so that in the future you apply for credit, your submission will be accepted by the bank or the company RC Finance online.