You are right.
This is a very serious matter.
And we shall tell you how it happens.
This DESTROYS your credit score. You know, credit score, that thing that keeps track of how good you are at repaying loans and meeting credit card deadlines? You don't? Oh dear...
Because your credit score sucks. You see, banks keep tabs on your credit history. And if they don't like it, they will not hesitate to turn you down. Cuz they're mean that way. And the credit monster strikes again!