If you have credit cards, you know that it can be tempting to use them…especially if you have unexpected expenses or dealing with medical bills, major home repairs or even legal fees. However, maxing out your credit cards can be a very bad idea and could affect your credit score for many years to come. Most people assume, when they have credit cards, that if they max out their cards they can pay them back…unfortunately this isn’t the case for many, as something always seems to come up. Here are some reasons why you don’t want to max out your credit cards:
One of the reasons you won’t want to maximize your credit cards is because you will have higher payments each month. This, of course, will put more of a strain on your monthly budget. Though you may be able to handle the $100 a month you may have on your $5,000 in credit card debt right now, maxing it out to $25,000, for instance, will push your payment to $500 or more each month. That could be troubling.
It Will Affect Your Credit Score
You will also find, when you max out your credit cards, that it will have a detrimental effect on your credit score…and this is not a situation that you want to be in. One of the biggest factors that your credit report is based on is your available credit. If you max your cards out, the available credit will plummet…and so will your credit score.
You Will Have a Difficult Time Getting Loans
Finally, when you max out all of your credit cards, you will have a much more difficult time getting most loans, again, not something that you want to have to deal with, especially if an emergency situation comes up.
You may have noticed, above, where it said “most” loans. There is at least one type of loan that you can get, even if your cards are maxed out. Actually, you can avoid this whole situation by taking out this loan…it is a car title loan and in Florida, you can get one at Embassy Loans. By just using the value of your vehicle, you can get hundreds, and even thousands of dollars to help you out. For more information contact Embassy Loans.