Bad Credit: What Does It Really Mean?

When a lender is unable to pay the installments on time, it can be said that the lender has bad credit. Bad credit is a bad credit where credit card users are unable to pay the minimum payment for more than 3 months.

Non-Performing Loans

Non-Performing Loans

Or commonly abbreviated Lenders are other terms of bad credit. It is very important for banks to maintain their Lenders as it is an indicator of their bank performance. If the Lender is low, then the bank can be categorized as healthy. On the other hand, if the Lender is high then the risk taken by the bank is high. If their Lender is above the previously predicted limit then the bank can be categorized as problematic.

Bad credit won’t be a problem if there are only one or two lenders who are not disciplined to pay off credit card loan installments. However, if a large number of credit card users in the near future do not pay their installments then the bank’s Lender will rise. Bank Lender trying to control them more cautious in meng- issue credit cards to new customers and to boost transaction needs a day – day.

This bad credit phenomenon is commoLenderace because many lenders do not yet understand how credit card interest works. Well guys, this article will talk about how credit card flowers work. For those of you who don’t know, check out these reviews.

How Credit Card Work

How Credit Card Work

Exactly how the interest on credit card works is explained and also sent along with the physical card to the debtor by the bank. In most cases, customers or creditors are reluctant to read and understand this.

The first thing you need to understand is what conditions cause the bank to charge interest on the debtor. There are at least 5 conditions:

  1. Debtors make payments past due dates
  2. Debtors make payments with a nominal minimum
  3. The debtor makes a nominal payment of less than the minimum
  4. The debtor makes no payment
  5. The debtor makes a cash withdrawal transaction

Actually, as a borrower or a debtor, you can avoid the rising costs by avoiding all five of the above conditions. Make it a point to pay the bills on time and as much as possible without paying the minimum nominal charge. Especially if you often withdraw cash from your credit card. This will affect your billing amount. The more you do the above, the higher your credit card charge.

Also, keep that in mind when you have more than one credit. Once one credit card has reached its limit, you may be tempted to use another credit card to collect cash. Whereas if we understand and understand the true function, the benefits of a credit card can be even greater.

Not only Self-Damage, but Bad Credit can also be harmful to the national economy

Not only Self-Damage, but Bad Credit can also be harmful to the national economy

South Korea is proof that bad credit can have a devastating effect on a country’s economy. This happened in 2003 before. South Korea is experiencing an economic crisis due to the huge credit card debt of which total credit card balance reaches $ 100 billion, the amount of credit card issued is 105 million cards which mean the average adult in South Korea has 4.6 Cards. Of course, this has caused South Korea to deal with strange Lender situations.

The ratio between debt and disposable income per household reaches 130%. This means that the average household debt is 30% greater than disposable income. Their credit card bad credit score reached 13.5%, even 30% according to other sources, compared to 4.09% in the United States at the same time.

If we do not begin to be disciplined in paying the bills, then we do not close the possibility that the Indonesian economy will suffer the same fate. Therefore, from now on avoid bad credit and get used to creating healthy credit. Primarily this will benefit you, the added value is that you are saving the country’s economy.

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