10 Side Effects of Bad Credit
10 Side Effects of Bad Credit
How Bad Credit Affects Your Life
By LaToya Irby, About.com Guide
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As you're maxing out your credit cards and ignoring your bills, you might not realize the effect it's going to have on your credit. Credit card payments and level of debt have the most impact on your credit score. Mess up in these areas and your credit score will plummet.
"What's the big deal with a low credit score," you might ask. Since so many businesses now judge you based on your credit score, having bad credit can make life extremely difficult from getting a job to getting a place to live. Here are some of the most common side-effects of bad credit.
1. High interest rates on your credit cards and loans
Creditors and lenders see bad credit applicants as riskier than applicants with better credit scores. They make you pay for this risk by giving you a higher interest rate. Over time you’ll end up paying more in interest than you would if you have better credit. The cost is higher with big credit card balances or major loans.
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2. Credit and loan applications may not be approved
Because creditors and lenders think your bad credit is a risk, they might not want to lend to you at all. You may find that your applications are being denied.
3. Difficulty getting approved for an apartment
Who knew that landlords checked credit before allowing you to sign a lease? It’s true. Having bad credit can leave you homeless or close to it.
How to Rent With Bad Credit
4. Security deposits on
How Bad Credit Affects Your Life
By LaToya Irby, About.com Guide
Ads:
* Bad Credit Card * Side Effects * Credit Score Scale * Adverse Credit Mortgage * Auto Loan for Bad Credit
As you're maxing out your credit cards and ignoring your bills, you might not realize the effect it's going to have on your credit. Credit card payments and level of debt have the most impact on your credit score. Mess up in these areas and your credit score will plummet.
"What's the big deal with a low credit score," you might ask. Since so many businesses now judge you based on your credit score, having bad credit can make life extremely difficult from getting a job to getting a place to live. Here are some of the most common side-effects of bad credit.
1. High interest rates on your credit cards and loans
Creditors and lenders see bad credit applicants as riskier than applicants with better credit scores. They make you pay for this risk by giving you a higher interest rate. Over time you’ll end up paying more in interest than you would if you have better credit. The cost is higher with big credit card balances or major loans.
Ads
MasterCard Lost/Stolendeveloper.mastercard.comWeb Service API to query if a card was reported lost or stolen.
Open NRE Savings Accountyesbanknriservices.co.in& Get 7% Interest Rate p/a* . YES BANK NRI Banking. Apply Now !
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2. Credit and loan applications may not be approved
Because creditors and lenders think your bad credit is a risk, they might not want to lend to you at all. You may find that your applications are being denied.
3. Difficulty getting approved for an apartment
Who knew that landlords checked credit before allowing you to sign a lease? It’s true. Having bad credit can leave you homeless or close to it.
How to Rent With Bad Credit
4. Security deposits on