Many Americans fail to realize the significant impact of their credit scores on their everyday life. To lenders and financial institutions, your credit score is viewed as a “summary” of you, your spending habits, and how you manage your money. If you rarely check your credit, here are some ways a bad credit score can hurt you.
Less Access to Money
Life tends to throw us a curveball every so often. For example, if you are looking to pay off a medical emergency or help out a family member or friend in need, it will be hard to borrow money with bad credit.
When you have less access to cash, you can be more vulnerable during an emergency.
If you have less than ideal credit, your bank or lender will consider you as a “high risk” borrower. If the bank decides to lend you money, you can expect to pay a much higher interest rate than a person with a healthy credit score.
Larger Down Payments
When it comes to buying a home or a car, almost all lenders will require some form of a down payment. If you have less than perfect credit, a bank or lender may require that you place a down payment more than the normal amount. You will need to save much more than a normal consumer for a down payment.
Believe it or not, your employer or potential employer can ask you to view your credit report. In some highly specialized industries, managers want to ensure that their employees will not steal or take part in actions that could harm their company.
Finding a New Home
Consumers with bad credit also have a much more difficult time of finding a rental. Most landlords and property managers will run a hard credit check on almost all applicants to ensure that the tenant is financially responsible.
By taking the time to increase your credit score, you can open yourself up to many more opportunities, and at a much lower cost. If you are buried under a mountain of debt and ready for a fresh start, CrediReady can help. Our nationwide network of trusted and experienced lawyers are prepared to give you a FREE bankruptcy consultation to help you. Take a moment to fill out our inquiry form today to speak with your FREE attorney.