Debt has become the standard way for people to manage their financial life. Instead of cash, families and individuals are turning to credit more and more. It seems an easier form of payment, granting access to things when we need or want them.
But, the amount of debt is a major problem many Americans face. According to a 2022 financial report by CNBC, the average US household with debt owes an average of $155,622. That is up 6.2% from over a year ago. The debt includes credit cards, mortgages, home equity, lines of credit, auto loans, student loans, and other household obligations. This makes one wonder whether using debt is a wise path in the first place.
Regardless of where you fall on that issue, existing debt makes it harder to pass credit checks and get any additional financial applications approved. Banks are less willing to extend additional lines of credit to someone already swimming in debt. So, you need to understand what you are facing if you are wanting additional financing for something.
In this article, we’ll be diving into credit checks and how they impact your credit score. We’ll also see if there are any work-arounds to help you get the financial assistance you need.
