While many people understand that having a bad credit rating isn’t too attractive or helpful in life, not everyone understands the impact that bad credit can have on someone’s life. The fact that the word “bad” is included in the term “bad credit” informs people that this isn’t something that you should be setting out to achieve but it may be that the implications of having a negative or poor credit rating can have a bigger impact on your life than you initially think.
If you want to focus your mind on improving your credit score, it is vital that you make yourself fully aware of some of the negative aspects of bad credit.
- You may find yourself unable to obtain a mortgage
- You may find yourself being prevented from renting the property that is best for you
- You may find yourself being unable to obtain car insurance or affordable car insurance
- You may be denied the chance of obtaining a car loan
- You may not be able to take out a mobile phone contract
- You may be prevented from getting the job you want
These are all serious problems and it may be that you are impacted by a number of matters, not just one. This is why it is vital that you are aware of why bad credit is such a problem for many people.
In the modern day, obtaining a mortgage is difficult for many people but poor credit scores are playing a very big role in people not obtaining the mortgage that they hopes for, or any form of mortgage at all. Virtually everyone needs support and assistance when they are looking to get on the property ladder and if you find yourself being denied this level of support, you will find it can be virtually impossible to obtain a mortgage. Many mortgage lenders will consider your credit rating very closely before allocating funding and if your credit rating is bad, you may find yourself priced out of the property market.
If this is the outcome you face, you’ll find that you will need to switch your attention to the rental market. While most people who find themselves denied a mortgage will be able to rent, depending on the landlord or the company arranging the letting agreement, your credit report may influence their final decision. This isn’t going to be the case for every applicant but there have been more than enough people denied the chance to rent a certain property because of their low credit score to know that this is something that people need to be aware of.
There is also the fact that if you are looking to obtain a car, your credit score will have an impact. Many people are fully reliant on their cars to get around, to do their job and to care for their family. This is why having access to a car is so vital for many people and this is why it is so frustrating to find that your bad credit rating prevents you from obtaining the car that you want and need.
There is also the fact that many people find that they are unable to obtain affordable car insurance thanks to their credit rating. Many insurance companies consider an applicant’s credit rating before agreeing to an insurance package, so you could be hampered in this aspect.
It may not be as vital as some of the issues caused by bad credit but if you have a bad credit rating, you could find yourself missing out on obtaining a mobile phone contract. This can be very frustrating and again, it could impact on your ability to contact friends and family members, have fun or even find employment.
The many ways that a bad credit rating can have an impact on your life should be enough to remind people of the importance of improving their credit rating. If you are looking for ways in which you can improve your credit score, you should consider obtaining a guarantor loan.
A guarantor loan, where someone is willing to vouch for the applicant, provides a lower rate of APR and offers the applicant the opportunity to improve their credit rating. Improving your credit score can be a slow process but the sooner the start, the sooner you can make improvements.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.