Having bad credit is very detrimental to your everyday life, and won’t go away overnight just because you want it to. It’s not something you can get rid of very easily, even if you really want it to fix itself. Having bad credit can affect you in plenty of ways, including taking loans or applying for credit cards.
As your credit history starts to look bad, your options begin to start being bad as well. The places you can go to look for loans will now become so restricted that when you finally do find a bank to approve you of getting a credit card or loan, you can be sure the interest rates will be ridiculously high. With such high interest rates, you can’t expect to reap any benefits from using them. If you, by chance, miss one of your monthly payments, you’ll find yourself paying much more than you’re capable of and will risk lowering your credit score by even more. Don’t be fooled by the terms and conditions that come with credit card applications. Although they guarantee 6-18 months of 0% APR, with a low credit score, you can expect it to be more along the lines of 6 months than the 18 months they would offer someone with higher credit.
It will also prove to be a challenge finding a job in some cases. When you’re a borderline applicant – in which the employer doesn’t know whether or not to hire you – the employer often looks toward the credit bureau in order to get a credit report on you. If your credit score doesn’t look good, they can assume you’re irresponsible and decide not to hire you.
It will also be difficult for you to find a place to live if you have bad credit. Forget buying your own house, even apartment landlords may not even accept you if your credit score is too low. They will almost always run your name through a credit report to see whether or not you’re trustworthy, and with a low credit score, they can safely assume that you aren’t. And even after you find a place to live, if you have bad credit, you can expect the utility companies to require you to pay a security deposit before you can use their services. This includes electricity and phone companies. Your credit score reflects your reliability to the rest of the world, so in order to prove yourself reliable; you need to manage your credit score properly so that it doesn’t slip up.
All of this is just unnecessary stress that can be avoided as long as you take care of your credit score and don’t let it slip. If you do make a mistake, take care of it early before it gets too far out of hand, because let’s face it; you’re going to have to settle this sooner or later, and the longer you wait, the more drastic the disadvantages become.
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