In April 2017, the average American credit score was 700! This is a major increase from a decade ago.
If you were not fortunate enough to see an increase in your score and still have bad credit, you may be concerned about the negative impact that it can have on your life.
It can be difficult to recover once you have been labeled as having bad credit. The last thing you want is to be in a position where you need a bad credit loan or other financial help for an important project and are unable to get it. However, this is what often happens when your credit score is too low.
Read on to get a closer look at how credit issues can impact you.
1. Unapproved Loan Applications
When you have bad credit, many lenders will refuse to give you a personal loan, a credit card or other types of financing. Even if they do decide to lend you money, they may offer you less than what you need.
If they do give you the full amount you are likely to end up having to pay high interest rates like with payday loans online. The higher the interest rate the less you will pay towards the principal of the loan and this makes things more difficult for you financially.
2. It Might Become Harder to Land Your Dream Job
Have you got your eyes set on landing an upper management position or a job in the financial industry?
If you do, then bad credit can negatively impact your chances of landing jobs in these fields.
Often, jobs in the financial industry, require that you meet a certain standard for your credit score. If you have a large amount of debt or if you have had a history of bankruptcy it will impact negatively on your chances of getting employed.
Think about it – Your potential employer will wonder about your ability to manage responsibility and finances for their business if they feel you cannot manage your own.
3. It Can Get Difficult to Rent
Got your eye set on a lovely apartment you want to rent? You may have a hard time getting the landlord to rent it to you if you have a bad credit score.
This is because your potential landlord will make the assumption that you will be unable to make the monthly payments for rent in a timely manner. If you have a competitor for the lease whose credit is better than yours then it is highly likely that you will not get the apartment.
Final Thoughts on Credit Issues
The ramifications of having credit issues are serious. Bad credit is often only spoken about in terms of how it can impact your ability to get personal loans and credit cards.
The fact is that it impacts a lot more than that. It is unfortunate that you may miss out on that job that will take your career higher or the perfect apartment because of a low credit score.
However, there is a silver lining in all of this because there are some lenders who will lend you money with decent interest rates even if you have bad credit. If you would like information about this as well as other financial advice then please visit our blog. Here are some other articles you might find interesting: