This is Bob. Bob spends way too much money on clothes. Because his credit card is a form of revolving credit, he is not very motivated to make larger payments in order to pay off his debt. Because of this, Bob is swimming in credit card debt. He was not educated on credit and really doesn't understand where the money is coming from so he just keeps spending it with no intentions to pay it back later.
I'll take one of everything please!
Nah, trust me, it's fine.
One day, Bob was walking home with his good friend Alex. Alex is much better than Bob at tracking and taking care of his credit. Alex has a credit score of 801. Alex was very concerned about Bob's spending habits and tried his hardest to convince Bob to look at his credit score and report.
You really need to look into your credit Bob. This is getting out of control!
One day, without realizing how his credit report and score would impact his life, Bob applied for a car loan on a brand new Ferrari. Ferrari requested to view Bob's credit report, leaving an inquiry on his report for 2 years, and almost immediately after seeing his report, Ferrari turned him down because he probably wouldn't make his payments. Bob later applied for car loans on much cheaper cars but all of these companies turn him down as well.
Umm, sorry mister but we looked at your credit score and report and you're too much of a risk for our company.
Excuse me sir, I'd like to buy a car.
Recent Payment: $0.00
Total Debt: $94,357.00
Oh wow! Alex was right... I really need to fix this.
Bob went back to Alex and asked for help but they were both concerned that Bob may have let it go too far.
Is there anything that I can even do at this point?
Bob tried to fix his credit score in every way possible but it was too late. He let his debt grow way too high and he let his score drop way too low. Because of this, it was almost impossible to use any credit at this point because either interest rates were too high or he just got rejected by the company all together. This made life unnecessarily hard for Bob.