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Bad Credit Can Follow You in Unexpected Places
A bad credit score won’t just hurt your ability to get new shoes at the mall. It can hurt you in other ways as well, that have real impact on your life. Young people especially need to be aware of how a bad credit score can wreak havoc on their personal and career well-being into the future.
Bad Credit can hurt Employment Opportunities – According to the U.S. Equal Employment Opportunity Commission, 30 to 40 percent of employers use credit score as an employment selection device. In other words, bad credit could be a stopping point from landing that new job, especially in a recession, where employers are especially careful to hire responsible workers.
Buying a home is difficult for people with Bad Credit – Many young people don’t realize the importance of good credit to get the proper loans to buy a home. According to Consumers Union, the non-profit publisher of Consumer Reports: “A borrower with a credit score of 660 or greater is considered to be of less risk.” If you are considered high risk, getting something like a home loan may be next to impossible.
Renting an apartment is difficult with a low Credit Score – When renting an apartment, a credit check is standard for companies to learn about the fiscal responsibility of new tenants. Poor credit may cost you that nice new apartment and force you to live in less-than-perfect settings.
Higher Insurance rates for home, life and auto for people with Bad Credit – Did you know many insurance companies charge higher premiums for those with less than perfect credit? Insurance companies define an “insurance score” based on a combination of your credit score and information from your previous insurance carrier. Basically, those with bad credit not only have to pay more to drive their new car off the lot; they have to pay more to insure it too.
These are just a few examples of how bad credit can follows you everywhere. The ideal situation is not to get into credit problems to begin with, but if you do find yourself in a bad situation, a credit score consultant can help you make sense of the problem and help you find your way out of debt.
