The Reason You Don’t Want Subpar Credit
Posted at by ifydcat on category CreditBad credit definitely doesn’t have any advantageous effects, and once you get it, it becomes extremely difficult to get rid of. With that being said, it’s important for you to fix your bad credit history as soon as you can, before its effects catch up with you. Some of these effects include not being able to apply for loans or get approved for credit cards, which is extremely important for various things.
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.
There is almost nothing you can do independently when you have a poor credit score. Even utilities and apartment landlords inspect your credit before they give you their services. For instance, apartment landlords will run your name through a credit check before they decide whether or not to allow you to live there. And if you somehow miraculously get approved by the landlord, the utility companies will check your credit score and have you pay a security deposit based on your credit information. With a bad credit score, you can expect not being able to stay in one place for too long, and having to move through various homes and paying utility deposits over and over. You also won’t be able to start your own business due to the fact that you will have such high insurance premiums and won’t be able to take out business loans.
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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