The Ill Effects of Having Bad Credit

“To me, bad credit meant dealing with high interest rates and not being able to secure a mortgage. Little did I know that in reality, there are a number of other consequences to bad credit that affect me even more,” says one man with bad credit. This unlucky consumer is right! Bad credit should be taken seriously because it can have definite negative effects on your life. Bad credit can prevent you from changing jobs or getting a promotion. Employers like governmental agencies and many major corporations, pull credit reports of the applicants they are hiring to see if the have bad credit. One unlucky job applicant found this out first hand, “I was so excited when I was offered a job that paid $12,000 more than my current job. But then, they completed a background check and discovered my bankruptcy, and they rescinded the offer. I was devastated. Haven’t I suffered enough?” Also, bad credit scores cause stress. Most people with bad credit do not have access to credit lines that could supply an emergency line of cash. One woman says that having bad credit “constantly keeps me up at night. How will I survive financially? I worry that my child will get sick, or I’ll lose my job. There’s no security. Having bad credit is ruining my life.” The stress from having bad credit can also create unneeded tension between you and your spouse. One couple blames the demise of their union on bad credit, “We were always fighting about our issues with bad debt. I was blaming her, she was blaming me. We finally decided to call it quits because it just wasn’t working.” If you think all that is bad, there is more: Bad credit can also prevent you from renting an apartment, obtaining car insurance, opening account, and getting student loans. Another source of embarrassment can be caused by creditors forcing you to clean up your credit before they give you a mortgage. If creditors will actually give you a loan, you will be forced to pay steep interest rates and large down payments. In the end, when you have bad credit, you will suffer in many ways. But, with a lot of work, you can clean up you credit so you can have the life you deserve!