Who Cares If I Have Bad Credit?

Credit is easy ignore until you need it. According to Experian more than 30 percent of Americans have credit scores of 601 or lower, which is considered bad credit. Aside from applying for a mortgage how does that score actually affect you?

Contracts May Be Denied

Anytime you enter into a contract that will require monthly payments your credit will be checked. If your score is low that shows the company you may be unreliable and they will likely pass on your business or saddle you with a very bad contract. If you are not denied outright you will likely face a higher rate on your payments. This is especially true with cell phone carriers forcing people to go with pay-as-you-go plans which can be a lot more expensive in the long run.

Inflated Insurance Premiums

According to the National Association of Insurance Commissioners the vast majority of insurers take credit into consideration when making policy (in states where that is not banned) decisions namely 95 percent of auto insurers and 85 percent of home insurers. You could wind up paying a ton just because of your credit history and nothing else!

You Could Be Passed Over For A Job

Whether it is a moral practice or not, having bad credit can affect your career. If you are going for a position in government, finance or management this could put you at a disadvantage. According to the Society for Human Resources Management 34 percent of employers use credit checks on some job applicants and 13 percent conduct checks on all applicants with one in ten being denied a job because of a bad report.  Bad credit could also cost you a Security Clearance, which can cost you a number of government jobs.

You Will Face High Interest Rates

Lower scores mean higher risk to lenders so they will attach a higher interest rate to a loan or credit card. So if you are one of those 68 million Americans with bad credit you will end up paying more in interest.

Consertar o seu crédito pode ser tão simples como fazer uma chamada! Estamos aqui para o ajudar a reconstruir e a compreender o seu crédito. Ligue-nos para começar ou saiba mais sobre o que podemos fazer por si 1-800-431-0449.