The Disadvantage Of Bad Credit
A good credit score is very fundamental for everyone. Recklessly spending, ignoring bills making out several credit cards all have a negative impact on your credit score. Your credit score keeps tabs of your spending habits and increases with your bad choices. A low credit score is a good credit score. A bad credit score brings a lot of disadvantages.
High-Interest Rates On Debt
A high credit score basically means you are charged huge interest rates on credit cards and loans. People with low credit scores often have the advantage of negotiating for lower interest rates. Bad credit just makes you look undesirable to creditors and makes you susceptible to high-interest rates.
Credit And Loan Applications Are More Likely To Be Disapproved
When you have bad credit, your reputation doesn’t look so good to creditors and you aren’t “reliable” to offer a loan or credit to. Most loans and credit you apply for may get rejected as they may not want to lend you any money. Bad credit doesn’t look good on your resume and can prevent you from taking out loans.
Disrupts Rental And Employment Applications
Landlords check the credit score of individuals before hiring them. This can give them an idea of whether you’ll be able to follow up with your payments or not. People with bad credit are considered to be a problem when it comes to rentals so you might have difficulty renting out a place. This applies to big companies too. Certain jobs require you to have a good credit score and when you have bad credit, it reflects badly on your application.
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[…] spend your money wisely, it could have adverse effects on your credit score. There are a lot of disadvantages of bad credit and you certainly would not want to experience […]