Monday, April 1, 2019

The Real Dangers Of Having A Bad Credit Score

If you’re borrowing money and not paying it back on time, your credit score is going to drop. Your credit score is what lenders and other organizations use to judge how sensible you are with your money and whether they should give you any. Most people know that it’s important to have a good credit score and if you don’t, you won’t be able to get a credit card with a good rate, but that’s not the only problem that comes with a bad credit score. You’d be surprised just how many different areas of your life can be affected by your credit score. These are some of the problems you’re going to face if you’ve got bad credit.

Borrowing Money
This is the most obvious result of a bad credit score, and it’s not just about credit cards either. People find themselves in need of quick cash for a lot of reasons. It might be that you’ve got big medical bills to pay and your insurance won’t cover it or your house is in need of important repairs that you can’t afford. But if you’ve got bad credit, you’re really going to struggle to find anybody that will lend you money. However, there are some companies out there lend money specifically to people with bad credit. Check out this site for more information. The only downside is that the interest rates are going to be a lot higher than they would be on a normal loan that you’d be able to get if you had better credit.  

Finding Somewhere To Live
When landlords are renting out properties, they need to be sure that their tenants are actually going to pay them on time each month. The easiest way for them to find out whether you’re likely to pay on time is to look at your credit score, so if it’s low, you’ll struggle to find a landlord that is willing to rent to you.

You might think that this doesn’t impact you because you don’t rent, but it could if you decide to move. When you’re trying to get a mortgage application approved, they’re going to look at your credit score. If it’s low, you’ll struggle to find a mortgage with a good interest rate which means you’ll be paying a lot more money out over the years.

Getting A Job
There are a few states where it is illegal for employers to check people’s credit scores before they hire them but in most places, they can. Nobody has actually proved that there’s a link between bad credit scores and bad performance at work, but that doesn’t stop employers looking at them. If you’ve got a bad credit score, they may assume that you’re not a very trustworthy person and you won’t perform well. It’s not the only thing that they’ll use to make their decision but if it comes down to you and one other person, it could be the thing that loses you the job.

Even if you’re not planning on getting another credit card, you still need to make sure that you sort your credit score out.