Nowadays, many people can
get into a bad credit situation if they do not keep track of their income and expenditure.
Late payments definitely
translate into bad credit history, and fall off after 7 years — give or take 6 months in either direction.
So basically, even attempting to build good credit means that you may run the risk of falling
into a bad credit trap.
Do not wait until interest rates go higher either, because it may become even more difficult to qualify for credit and you may be
forced into bad credit debt consolidation.
As you'll learn budgeting skills and build new spending habits you won't easily fall
into bad credit again.
In addition, since it is easy to
get into bad credit a regular checking of credit reports can also help you recognize early signs of financial disaster.
FICO high scorers tend to depend on their high scores to get cheaper and better deals than those who had already fallen
into the Bad Credit category.
In fact, so many private lenders and private companies have
stepped into the bad credit personal loan market, you may be able to shop around and pick and choose the lender that offers you the best interest rates and the most comfortable repayment terms.
According to FICO, it isn't surprising for someone with a spotless credit to fall
into bad credit since medical - related debts and collections from credit agencies have equally damaging effects on a person's credit standing.
So, I think if I were in your shoes, I'd save up money to invest, work on repairing your credit, and most importantly identify and fix the root cause of what got
you into bad credit in the first place (you'll need to be real honest with yourself for this).