Credit Card Companies - written by Beth Hendrickson

Are you a credit card company's worst nightmare or are you a dream come true? A consumer who applies for a credit card who has great credit will be approved for a credit card and will get a good interest rate. A smart spender will only use the credit card for emergencies or only once in a blue moon. When they do swipe the card, they pay off their balance right away. Credit card companies hate when consumers do that. They want you to pay the extra interest, that's more money in their already stuffed pockets. A person who swipes their credit card once a day like a smoker who smokes a pack a day (you can't live without it) and pays after the due date will be subject to late fees. This is what they want; they want consumers to pay late fees. Credit card companies want cash cows who like to spend-spend-spend and those who pay late fees.

Those who pay off balances before the due date are not the most valued customer. Now, when it's time for a consumer to purchase a new car or a new house, and the bank or mortgage company had a choice to grant a loan to either the person who pays late fees or the person who hasn't paid any late fees and pays their bills on time and before the due date, which person will be given a loan at an excellent rate? Which person can sleep at night because they have good credit and they know without doubt in their minds that they will be approved for a mortgage or a car loan? The person who has good credit. Now, the person who pays late fees has to go through hassle just to get approved for a new loan for a home or a car. Depending on how deeply in debt they are, they are subject to filling out a ton of paper work. The process takes longer.

The person with good credit is the one that will pay 0% interest rates or very low down payments. People with no credit or bad credit are the one's that have to put down a large deposit for a new car or a large down payment for a house.

How can you become a credit card company's worst nightmare if you already have bad credit? First, pay off all outstanding debt. For your next purchase, pay it off immediately. This must be done consistently. You will begin to build your credit reputation. Then one day, you will become the consumer who is eligible for 0% Interest rates and very low down payments on a house.