Bad 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.
For instance, getting a loan from a standard bank will become difficult. Also, you most likely won't be approved for credit cards since you can't be trusted to make your monthly payments. As your credit score drops, so does your reliability, and as your reliability drops, the amount of people willing to help you do as well. This includes, but isn't limited to, banks, loaners, and creditors. If you're looking for loans in order to buy a house, a car, or even something like a laptop, you can be sure that it's going to be hard to find one. However, if you do get your hands on a loan, you can expect it to have extremely high interests rates - rates so high that if you end up missing a monthly payment, you'll be paying more than you would have ever dreamed of paying for whatever you were buying. With such high rates on all of your credit cards and loans, it becomes very easy to accidentally miss a payment, which will lead to more and more missed payments. Soon you'll find yourself having an outstanding balance, which will decrease your credit score by even more. Also, even if you get your hands on a credit card, you probably won't be able to receive the same benefits that people with a higher credit score receive such as cash back or airline miles.
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.
For instance, getting a loan from a standard bank will become difficult. Also, you most likely won't be approved for credit cards since you can't be trusted to make your monthly payments. As your credit score drops, so does your reliability, and as your reliability drops, the amount of people willing to help you do as well. This includes, but isn't limited to, banks, loaners, and creditors. If you're looking for loans in order to buy a house, a car, or even something like a laptop, you can be sure that it's going to be hard to find one. However, if you do get your hands on a loan, you can expect it to have extremely high interests rates - rates so high that if you end up missing a monthly payment, you'll be paying more than you would have ever dreamed of paying for whatever you were buying. With such high rates on all of your credit cards and loans, it becomes very easy to accidentally miss a payment, which will lead to more and more missed payments. Soon you'll find yourself having an outstanding balance, which will decrease your credit score by even more. Also, even if you get your hands on a credit card, you probably won't be able to receive the same benefits that people with a higher credit score receive such as cash back or airline miles.
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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