Your future financial lifeline
Credit history is and has always been crucial to your financial status. If you have poor to bad credit, chances are you cannot get any financial institution to loan you money. No one wants to deal with a person with bad credit. They don’t care how you got it, so long as you have it. The worse it gets, the more they turn you away. In America, that is the norm of things. You don’t get a second chance either, unless you really work hard at it to get to good standing.
Having good credit is your monetary lifeline. Without it, don’t bank on getting approved for various things like a car, house or even a company that wants to give you clothes and then pay later.
What poor credit costs you is your ability to even find a job. Apparently, Some Employers are doing credit reports for potential employees (I don’t see the relevance) before they consider hiring you.
Outlined are ways on how what poor credit costs you. How it affects your life and the future of your financial status.
Paying High interest Rates
This is the most common one. When you want to borrow money, an interest is put in place for you to pay every time it is pay day.
Unfortunately, the interest rate is determined on how good your credit is.
As we all know, poor credit is not very forgiving. To any lender, it means that you have a history of not repaying or being late on loans. These financial institutions are in business to make money, not to lose it. Paying thousands than the original sum you borrowed in the first place is the number one setback of having poor credit. That is what poor credit costs you in the long run.
Lack of Access to Certain goods and services
You lose the privilege of being granted access to certain products and you can’t be granted approval in purchasing certain services as well if you have poor credit.
These things may include:-
- A credit card– The credit card company will not give you a credit card if your credit report is bad. Those that do entrap you in high interest rates and you end up in more bad credit woes.
- Smartphone– They might not give you a good phone just because your credit history is bad. The service company itself might not approve you in getting cellular phone service either.
- Banks– They may not allow you to set up an account because you have bad credit. You end up going to check cashing places and getting high interest credit cards. That is what poor credit costs you; the luxury to be treated with some financial respect.
Having High Insurance
The premiums suddenly become harder to attain when trying to shop around for insurance and if you should finally get it, they too, will slap a very high premium for your monthly payments. Eventually, you end up paying a lot more than the person who has good credit.
Your love life suffers
When you are wallowing in debt, such a situation just puts a strain on the relationship with your spouse or lover. Different situations start to arise and you are not very keen to share with your significant other because you don’t want them to think that you were reckless with money or some people would rather handle a problem on their own.
This cause a lot of tension and you are both unhappy. You start to snap and are irritable at everything. The relationship will obviously suffer.
Your relationship with the kids is no exception either. You are not unconsciously pleasant to them since you are so miserable. That is what poor credit costs you.
Some Jobs will simply refuse to hire you
Some banks and other facilities always run a credit history background check to see how good you are with money.
If you are going to be handling a lot of money per day, then they want to see if you are good at it, or just make poor judgments. That is the bitter truth of what poor credit costs you.
What poor Credit costs you
It costs you everything; let us be frank about it. Not only does it mess up your life, but it can potentially ruin the credit of your spouse.
The only way to get out of debt is to start making arrangements on how you can clear it because no lender or institution is ever going to take you seriously if you want to get money from them.
What is worse, it can follow you for years and still keep showing up even when you think that the coast is clear. That is what poor credit costs you.