Bad credit is something you don’t want associated with your finances. Unfortunately, you may have less than stellar credit at some point in your life. Credit scores represents how well you can't pay something back without any setbacks its designed to show a lending institution who is a good investment and who of course is not not so much. Banks believe that credit scores i.e. past financial behavior are a good indication of an individual’s future financial behavior. Whether or not you agree with that statement, the negative effects of having bad credit are undeniable. Here’s a list of things that can get pricey or are unattainable if you have bad credit
1. Car Insurance. Insurance carriers in 47 states check your credit score when arriving at a rate. They’re with the …show more content…
Car Loans. You’ll likely need a loan when purchasing a vehicle as well. And banks will check your credit score before approving your financing; interest rates on your loan will sway with the results; results could vary by up to 2 percentage points.
5. Cell Phone Plans. Did you know that some cell phone carriers, like car insurance carriers check your credit score? They do another reason why it’s important to pay your bills.
6. Job Hunting. Under the Fair Credit Reporting Act it is legal for a future employer to review your credit report with your written approval. Hiring managers can use this information when making their decision. Some states do have laws that credit information in the hiring process.
To make sure that you don't have to deal with some of these problems always pay your credit on time and don't take a loan that you know you can't pay back because credit can be dangerous just as much as helpful because it can put you in tough spots in life that can lead to a bad path so either be very wise with how you use credit and only use it when you need it or just don't use credit at all use debit because it's your own money your spending you don't have to worry about borrowing any
1. Car Insurance. Insurance carriers in 47 states check your credit score when arriving at a rate. They’re with the …show more content…
Car Loans. You’ll likely need a loan when purchasing a vehicle as well. And banks will check your credit score before approving your financing; interest rates on your loan will sway with the results; results could vary by up to 2 percentage points.
5. Cell Phone Plans. Did you know that some cell phone carriers, like car insurance carriers check your credit score? They do another reason why it’s important to pay your bills.
6. Job Hunting. Under the Fair Credit Reporting Act it is legal for a future employer to review your credit report with your written approval. Hiring managers can use this information when making their decision. Some states do have laws that credit information in the hiring process.
To make sure that you don't have to deal with some of these problems always pay your credit on time and don't take a loan that you know you can't pay back because credit can be dangerous just as much as helpful because it can put you in tough spots in life that can lead to a bad path so either be very wise with how you use credit and only use it when you need it or just don't use credit at all use debit because it's your own money your spending you don't have to worry about borrowing any