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In Nigeria, your reputation is measured in a number of ways, but the most important is by the amount of cash you can cough out in time or distress. In America, your reputation is measured by your credit worthiness aside other things.
America runs on credit. The economy grows on credit, and majority of Americans live on credit, except for a lucky few that can afford to pay out
of pocket. Some, despite having cash, also prefer to spend on credit. Having a credit card loaded with money is like a fashion statement. You can qualify for any amount based on your income and your ability to repay your debt.
If you migrate to America newly, banks
If you migrate to America newly, banks
will start sending you credit card offers. Some with high APR or low APR. Normally, you don’t need to have a credit history to get a credit card, but if you don’t have an established credit history, you will have to deal with a higher APR.
All you have to do is pay off what you spent at the end of the month or break down the payments. As long as you pay back, banks will continue to review your history and income, then offer you more money. You must not default on your payment, because that could be the beginning
of your all your financial problems in America.
American banks reward loyal credit card customers with credit scores. The higher your scores, the more you can be trusted with a larger credit. The lower your score, the difficult it would be for you to get a credit card.
American banks reward loyal credit card customers with credit scores. The higher your scores, the more you can be trusted with a larger credit. The lower your score, the difficult it would be for you to get a credit card.
Your credit score isn’t just to get you more credit, but can be used to determine how responsible you are. Some employers could skip your application if you don’t have a good credit history.
Many landlords won’t rent a unit to you if your credit history
Many landlords won’t rent a unit to you if your credit history
is a mess. You either rent and pay in cash upfront, or check elsewhere.
Little things that makes life worth living can be hard to obtain if you have a poor credit history.
You can’t buy a new car on credit.
You can’t buy a house on credit.
You can’t buy other expensive things
Little things that makes life worth living can be hard to obtain if you have a poor credit history.
You can’t buy a new car on credit.
You can’t buy a house on credit.
You can’t buy other expensive things
on credit. Banks know that your income might not necessarily afford you the type of life you want, so if you don’t have cash to buy these things, it would be difficult for you to cope.
The key to enjoying credit cards is to have self-control. Only take credit cards with an amount you can afford out of pocket but use the card randomly to build your credit score.
If you are new in the country and have just started receiving credit card offers, don’t rush. Take your time and decide how much you should accept. Avoid defaulting on your credit card debts. One default is enough to drop your credit scores and it takes months to rebuild it.
Don’t stop making payments entirely, it will backfire in the future. As you move up the career ladder, some employers won’t hire you until they’ve checked your credit history. It tells them your spending habit and how well you can be trusted with finances.
If your family starts to grow in size, you might need a loan from the bank to buy you a bigger house, and only a good credit score can speak for you in this situation.
Using a Credit card is not compulsory, but your opportunities are limited if you don’t have it.
Using a Credit card is not compulsory, but your opportunities are limited if you don’t have it.
Foot note:
The American standard of living wasn’t designed for the people to save a lot of money in the bank. They are expected to live on credit with an income enough to sort out basic bills. It is possible to achieve but you will deny yourself a whole lot.
The American standard of living wasn’t designed for the people to save a lot of money in the bank. They are expected to live on credit with an income enough to sort out basic bills. It is possible to achieve but you will deny yourself a whole lot.
APR means Annual Percentage Rate (interest rate)
