It is not unusual for
first-time buyers to be free of debt. They have been saving for their first home
for many months or even years. Soon after they moved into their new home, they
are deluged with pre-approved credit card applications from banks and stores
they have never heard of. Before they realize what is happening, some new
homeowners can get over their heads in debt.
The consumer credit agencies know that mortgage
companies do thorough checks before approving a loan, and those who have passed
through that process are considered good credit risks. They also know that new
homeowners often need to make major purchases of furniture and appliances at a
time when they have depleted most of their savings accounts. After years of
disciplined savings, new owners may be faced with a tremendous temptation to
just say "charge it" for the things they need. If you have just
purchased a home, be aware--and wary--when those applications start pouring in!