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5 Ways Having Bad Credit Can Ruin Your Life

Having bad credit can be a pain for many reasons. It can affect your ability to receive financial aid if you need it, as well as your chances of getting approved for buying a house, car, and other large purchases. If you’re experiencing trouble with your finances, you should definitely get a hold on this before you lose control of your credit, or you will be in even more trouble. Debt can be an extremely hard thing to get out of, so you should do all that you can to keep your financial status in the green.


These are just some ways that having bad credit can negatively affect your life:

1. Inability to be granted loans— If you need fast cash and apply for a loan in order to get it, your credit can play a large role in whether you’ll actually be approved for this loan, or not. This can be extremely frustrating, especially if you are in need of the money due to an unexpected emergency. Bad credit can leave you in very bad shape if you need access to funds because you will be unable to attain this needed money. While there are some types of loans that will enable you to receive money without looking into your credit, if you need a larger sum of money loaned to you, your credit score and history will definitely be a factor.

2. Ineligibility to buy or rent a home, car, or apartment— Loans are not the only thing you won’t be able to receive approval for if you have bad credit. Homes, cars, and apartments are three other things that approval can be denied for if your credit is not good. This can be extremely detrimental for somebody trying to be financially independent and stable. The only way you will be able to attain these expensive items is by having a parent, relative, or friend co-sign for you.  This can be annoying for both parties, and finding someone that is willing to co-sign may be hard because in doing so, they are making a financial risk.

3.       Possible obstacle from being hired— While it may not seem right or even relevant, even prospective employers can ask for your credit history and score. Although this may just be routine and a bad credit score may not directly affect your chances of getting a job, it certainly won’t help you in any way. If you’re applying for some type of financial position, however, it’s easy to see how your credit score can directly affect whether you get the job or not. Employers will be wary of hiring a person to manage finances for their own company if the potential employee can’t even manage their own personal finances.

4.       Disables you from saving money— Having bad credit causes you to be focused on your debt rather than putting away money for saving. This is can be a major issue because without a savings account, you will most likely be ill equipped to handle life emergencies that may require money to fix. Unexpected events and predicaments are hard enough to take care of without the added stress of not having a savings account to help out, on top of debt.

5.       Stands in the way of potential service providers— Homes, cars, and apartments aren’t the only things you may not be approved for if you have bad credit. Cell phone, television, and Internet providers also have the ability to refuse their services if they think your credit is too bad. This is because bad credit can mean the inability to pay off these monthly bills. Service providers aren’t going to take this risk and provide you service if they don’t think you’ll be able to pay for it.

Easy ways to get a handle on your credit, now:

  • Make a budget— The best way to keep track of all money you make and spend is by creating a budget, and sticking as close as possible to this predetermined plan. This way, you know exactly where all money is going and can make the necessary cutbacks.
  • Quick charging to your credit cards— You should only use about 10-20% of your maximum spending limit at any given time. If you are drawing near to this 20% maximum, avoid using the credit card until you can pay some of it off.
  • Make payments on time— Making all bill payments in full and on time is a great way to keep your credit looking good. Stay on top of your bills so that you do not get behind and it cannot have a negative affect on your credit score.
  • Look for alternatives to bank loans—Need money? Don’t take out another bank loan. That uses your credit score. Instead, seek an alternative, like a title loan from TitleMax, that gets you access to cash without using your credit score.

Bill Stevens is a personal finance blogger and father of three lovely children. He hopes to one day educate his kids on the value of financial responsibility.

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