It may be something that you’ve heard seemingly a million times before, but having a good credit score is definitely a benefit in the world that we live in. When your credit score is good, things get a lot easier. You don’t have to fight to get loans when your credit is in good shape. You don’t have to pay high interest rates on your loans. And you can even breathe easier when you apply for jobs or apartment rentals that use credit checks as part of the screening process.
However, there are two sides to every coin. Just because your credit score is high, that doesn’t mean there aren’t some pitfalls that you need to be aware of, and to ultimately avoid. The disadvantages of a high credit score are miniscule when compared with the benefits, but you should be aware of them nonetheless.
Here are a few of the negative aspects of having a good credit score that you should know about…
The Temptation to Overspend with your Credit Cards
If you have a great credit history and your score is nice and high chances are that you have at least one credit card with a high limit and relatively low interest rates. It can be tempting to use those kinds of credit cards to splurge on things that you really don’t need. A purchase here and there will not put you in the poorhouse, but you have to keep any impulse spending on credit to a minimum. The lenders are not going to keep your spending in check for you, it requires you to exercise a little bit of willpower when those urges to overspend strike.
Constantly Getting Marketing Materials for New Lines of Credit
The credit card companies love people who have high credit scores. They know that folks with high credit scores will likely never default on bills, and that makes people with high credit scores the perfect target for marketing. You may find that your mailbox fills up every week with new offers from credit card companies when your credit score is good. Be sure that you don’t open too many cards. It’s probably best to put all of those offers right into the shredder.
Friends and Family may hit you up to Cosign on their Loans
If you have loved ones or friends with low credit scores, they may try to hit you up to cosign on loans. When someone has bad credit they often find it difficult to qualify for loans or lines of credit. If your friends get desperate enough, they may ask you to be a cosigner for a big loan. We can’t tell you how to run your relationships, but it is probably best to avoid cosigning on someone else’s loan. If they fail to make payments or even default on the loan, you have to take responsibility for the debt. Your credit score can drop if you cosign on a loan for someone else, so try to avoid caving into pressure to cosign on a loan for someone else.
There is good and bad to every situation in life. The disadvantages of having a good credit score can be annoyances, but they are not serious problems that you need to spend any time worrying about. Do your best to keep your credit score high and be aware of these potential negatives. Avoid falling into any of the pitfalls of a high credit score, and your credit score will be fine for years to come.