You are always told to maintain a good credit score and you may be well aware of the fact that a bad score cannot be gotten rid of that easily. It is one of the strongest reasons why you should keep tabs on your finances and be a bit more responsible with your cards. While the most obvious effects of bad credit are immediately noticeable like harsher EMI’s, steeper loan rates and more expensive insurance, there are a number of ways that are not as evident.
Here are a few unusual ways bad credit has sneaked up on people, and more reasons why you should get a credit repair company to fix your credit scores for you.
- Down paymentsBad credit can make your down payments high. While it is a well known fact that higher installments are likely, your down payment is also likely to increase when your scores are not up to the mark. A down payment is the initial amount that you will have to put down before your monthly payments start on a large purchase like a house or car. Their advertised small payments may not be applicable to those with bad scores.
- Severed relationships
While it seems like something that is taken out of a sitcom, a good number of people, especially those who are looking for long term relationships often bring up their financial standing to see what sort of person they are courting. While it has become normal to share health related information, a bad credit score in this day and age can be a serious deal breaker. Another way in which relationships can be affected is when people are turned down by banks and other lenders, they turn to their friends and family for cash. Given their bad history with returning owed money, it puts everyone involved in an awkward place. Relationships going sour because of money matters is always a sad situation.
- Employment prospects
There are a number of employers that go through their prospective employee’s credit reports before even giving them a job. While the ethics of this may not be strong or even questionable, it still being done in many companies. Another way in which bad credit can affect a person’s career is when there is a competitive promotion or raise in the cards. If a person with bad credit is up for a more challenging or responsible position in the office, they might lose out on it. While this does not happen everywhere, it is a practice that is under the wraps, but still there.
- Disposable income?Disposable income is the amount of money that is left with you after paying of debts, bills and other essentials. It the money with which you can do as you please. When you have bad credit scores, you are likely to be in a situation where you are paying off multiple cards, loans and EMI’s. Having money to spend as you please is likely to be a rarity, causing a dip in the overall quality of life.
Bad credit can leave with a lot of anxiousness. Couple that with not being able to move up the ladder at work, not having any money at the end of the month, and broken up human relationships, it is a perfect recipe for stress. The health effects are not discussed that often, but they are definitely present.
So always be wary of how you spend and handle your money. If your scores are suffering hire a top credit repair service company to have a look at it and fix it as much as possible.