Rundown of the Consequences of Bad Credit

When credit starts accumulating, we often don't really notice the side-effects – it seems like paying a bit of interest is a minor hassle in opposition to the immediate cashflow and possible purchases the extra credit brings in. However, as time goes on, the side-effects of bad credit can start to hurt your situation a lot more, and that's why here we want to talk about a few of the more serious consequences of having bad credit. Bad credit can hurt you in a few areas that you don't expect to, and before you need to resort to credit repair, let's review a few of them here so that you know what you're dealing with.

Second Class Citizen Affect

So, first and foremost, bad credit hurts you in that you will get less preferable treatment from lenders as a whole. If you have bad credit, lenders see you as more risky and therefore give you higher interest rates. This, in turn, can collaborate in making your situation turn for the worse over time. And then, if lenders think that you're really not worth bothering with because of your credit reputation, then you might get refused altogether. Next, another consequence to consider as a side-effect of bad credit is how it makes you look in sectors like apartment rentals. Basically, anyone who will be looking for you to pay on credit will be looking to see how you handled payments in the past and your credit reputation is one undeniable proof of your past habits.


Cellphone companies can also choose to put some restrictions on you to make sure you make your payments if your credit score is shaky. In fact, whenever you deal with utilities, your credit score comes into play to indicate to the company exactly with who they're dealing with. Employers can choose to make it hard on you as well, and this part is simply ethical – why would someone provide financial advice for example, when he or she can’t even manage credit accordingly or pay bills in full?

Consequences – Long Term

And now, as we move towards more long-term consequences, there's this difficulty in starting your dream business that can be in further jeopardy because of your need for credit repair. If you want to get good opportunities and rates to start a business in the future, try to make your current behavior indicative of what you're really about as a payer.

Consequences Getting Personal

And finally, even your future family could disapprove of your bad credit habits. Bad credit affects you any time you want a house, car or any of these things that require a loan. With bad credit, you’re also most likely to hop into a deal with high interest that’s not recommended for your family. Stress can then come in, which, after all, is all we’re trying to avoid here. Bad credit is an adventure that starts with little consequences, such as a bit of interest on your bills, but quickly the side effects start to kick in and we lose plenty of privileges in society when we head into credit repair. Let’s all be careful!

Neil Stern

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