Post
Topic
Board Economics
Re: Avoid loan apps, a word of advice.
by
Hispo
on 24/07/2022, 01:31:34 UTC
-snip-
That's how those credit apps can ruin the personal finances of the people. Once the people embrace it, then it's hard to stop it anymore as they find it difficult to find means just to pay their debt. For some beginners, better stay away from these loan apps or lending companies because they are not helping you, they are already taking advantage on your finances with their high interest. Although we can rely from them in times of emergency, but their high interest also kills us day by day.

I would also like to add, I have read credit companies are indirectely pushing people to adquire debt and have a good credit score, because there are things that one can't adquire with cash easily, like a home or a car, in those cases credit is likely necessary.
The problem is that if one do not have a credit history behind, banks will be reluctant to approve loans. It seems banks have quite a good plan set up for all of us.

That's actually a low key debt trap. It's been happening since finance companies and other micro loan companies became rampant. Including banks. You cannot easily make a loan  without those credit scores or debt histories. So, this is the reason why some people are forced to make a debt for them to have a record and approval won't be a hindrance once you need a loan.

Kind if ridiculous if you ask me, if someone ask for credit and does nor have a history it means that person has only used debit and cash, which should not be a red flag for banks or credit providers at all, I'd personally take it as a neutral thing, but I suppose banks must have a good reason to always need a credit history at hand, I am not an expert at banking at all , after all.