Did you know that the word credit come from the Latin word “credere” which means to believe in? From this, we also get related words like credible or credo. In business and finance, it is extremely important to be credible and trustworthy. Otherwise, nobody will want to do business with you.
When somebody applies for a credit card and is approved by the issuing credit card company, the latter is saying something like this – the person holding this card is someone we believe in and this card is proof of our trust in him and any business transaction that he undertakes. Same thing goes with credit loans.
Many people do not realize it but a simple thing such as a one-day late payment can have a big impact on their credit standing. I believe this is especially true in the US where they are able to keep track of Bad Credit Loans and Bad Credit Credit Cards. Once someone’s payment is delayed, their interest rates jump up to a higher bracket and their original debt becomes compounded. This is one of the ways credit card companies make their money – they get it from the interest and surcharges earned from your late payments.
So do yourself a favor, PAY ON TIME! That way, it keeps your debt in control and your credit credible.