How Bad can Bad Credit Go?

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Bad credit is like a nightmare and it can follow you around and affect every aspect of your life. If you are one of those who have managed to thrive with bad credit and just accepted the situation you are in, it’s high time you change your mind. These are the reasons why you have to start fixing your credit today.

Bad credit can take away your peace of mind

It’s hard to obtain a good night sleep knowing that your creditors and debt collectors are running after you. It’s hard to get by everyday when you worry about calls and letters. It’s hard to be happy and optimistic in life when you know you’re falling behind on your payments. And most especially, it is most worrying when a creditor threatens to take you to court.

Bad credit can cost you money

Imagine how much more money you could lose just because you couldn’t land a great deal for your loans or insurance premiums. How much more interests are you paying your credit card company just because you are in no position to request for a lower interest? Imagine the good things you could have bought with all the money wasted in those skyrocketing rates.

Bad credit will make you pay upfront

With bad credit, subscribing to a utility service or mobile phone contract would be difficult without providing a security deposit first. When you have bad credit, businesses won’t trust you, so they need to require money from you upfront, which you cannot retrieve unless you prove to be a good payer for quite some time.

Bad credit can leave you homeless

Bad credit can affect your ability to get a loan, such as a mortgage loan. What’s even more frustrating is that bad credit also affects your ability to rent an apartment. Just like other businesses, landlords would want to see whether you are capable of paying them on time, and they will check your credit score to determine your past payment behaviors. Unfortunately, even if you manage to get approved for a dwelling, you might have to pay for a few months in advance.

Bad credit can affect your job

Before getting hired or promoted, your employer will tend to check your credit score first as a means to gauge how responsible you are as a person. It may seem unfair, considering that bad credit doesn’t result from financial irresponsibility all the time. However, it’s just how things go, and you can risk professional growth if you don’t act on fixing your credit immediately.

Bad credit can prevent your entrepreneurial goals

If you have bigger life goals, such as starting a business, you will most definitely need credit for startup or to finance future expansion. Even if you managed to start a business with your own cash, you can never tell when additional financing will be necessary, and it’s wise to have good credit ready when that time comes. Moreover, if you’re looking for people to invest, they won’t trust putting their money into your business if you have bad credit.

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