What is the worst type of credit account I could have?

    Published: 06-16-2009
    Views: 8,716
    Mortgage Consultant Markita Aldridge discusses what the worst types of credit accounts are.

    Host: What is the worst type of credit account I can have?

    Markita Aldridge-Woods: The worst type of credit account is with finance companies and what I mean by finance companies, I don t want to name any. However these are companies that solicit you typically by mail, offering you some type of unsecured loan that typically carries an APR anywhere from 22%-27%. Typically, these companies offer you to consolidate debt with them and not that they are not reputable companies out there, but the APR is a red flag that these are really high risk loans; they are unsecured loans, meaning not secured by any property, is absolutely the worst type of account that you could have on your credit.