Use an online credit score to change your life.
If you have bad credit, it is not only your chances of getting a loan or credit card that will be reduced. Poor credit has a massive overall affect on many people’s lives, and it makes sense to find out your online credit score to see if you need to take steps to increase it.
You can blame whoever you want for your bad credit – your parents for not teaching you about money, your credit card company for not sending you enough red letters, and even your spouse for not chasing you to pay the bills on time. At the end of it all, your credit score is simply down to you. It is your responsibility to make sure that everything is paid on time, that you do not get more credit than you can afford to pay back and also to look after your own finances. Getting into debt and not paying it back is the fastest way to destroy your credit history and score, and now you are known as a high risk borrower. This means that you will have great difficulty in being able to get any credit, whether it is a $100 credit card limit or a huge mortgage. If you do manage to get credit for anything, you will very often be met by higher interest rates than you can afford to pay back, meaning that you will get even further in debt.
As well as facing the humiliation of not getting credit at all or facing the hardship of higher interest rates, you will often find that lenders will put higher penalty charges on payments that are overdue such as default charges, late fees, overdraft fees and many more. One missed payment and you could find yourself faced with some pretty hefty charges!
As well as the financial implications of having poor credit, a low online credit score will often lessen your chances of being able to get a half decent job. Most employers are now using credit checks as “references” to see how high risk it will be to employ you. The way that you take care of your finances will very often reflect other parts of your personality, and will also relate to how good an employee that you will be so by having a poor credit score, you are less likely to be employed.
Published in: Personal Finance