How Bad Credit Affects You

Almost every time you apply for something substantial in life, your credit is checked. This is especially true if you apply for any type of loan. For instance, if you apply for assistance in buying your home, the bank checks your credit history, if you need financing for a car, the lender checks your credit. If that’s not bad enough, prospective employers also check your credit file!

A poor credit score can wreak havoc on your social life and your pocket. With today’s economy, low credit scores are costing consumers hundreds or even thousands of dollars per month.

Many of the ”prime” credit cards that can improve ones credit score are unobtainable to those with bad credit. The credit cards that are available to those who have poor credit are known as “sub-prime” credit cards. These cards usually require steep initial fees or charge recurring monthly fees. They usually require deposits, give the consumer low limits and do not even report positive activity to the bureaus!
 

• Bad Credit and Your Mortgage
  Having bad credit significantly impacts interests rates, approval, etc in almost all situations, but it’s worse when your home is involved. When you buy a home with poor credit you pay between $50,000 and $130,000 more in interest.
• Automobile Payments
  When you make payments on your car with bad credit, you are paying anything between $5,000 and $9,000 more in interest. The increase usually comes in the form of a higher car note every month.
• Bad Credit and Employment
  There are times when employers will check your credit when it’s not necessary, and that is not illegal! Because your credit history is like a responsibility paper trail, employers look into your credit file as an additional way to judge your character.