Sometimes we cannot help but make mistakes in the past that may result into negative implications, such as our credit score. Your credit card debt can heavily impact your credit history. As a result, you are struggling to apply and avail of different services and products that you need or desire.
A bad credit rating obviously brings a lot of negative effects. Your credit cards for instance, can be affected as the issuer may not give you a higher credit limit. Since you may not be able to pay on time and pay in full amount, they’d rather let you settle for a low limit and just be okay with it.
Then there are also the mortgages. You are most likely not getting approved since they may doubt that you are not too capable of keeping up with the monthly dues. Or yes, you may be able to get one but at unreasonable interest rates and charges. Since you are not in the position to ask for a better bargain, creditors might take advantage of that and ask you for higher interest, among other fees that may be needed.
When getting an apartment, some landlords do the habit of checking your credit history. The moment they find out that you have a poor credit rating, they might not give you priority and you will end up choosing an apartment that may not meet your standards and need.
Loans are also hard to find when you are experiencing the dilemma of having a poor credit rating. Banks are more likely to disapprove your loan application. Your best bets would be credit unions or they payday loans where they charge higher interest rates. But since you are not left with a lot of choices and you are in a bad need, you will take the offer and pay such unreasonable interests.
These are just some of the negative implications of not being able to have a higher credit score. Not to mention, of course, the emotional effect whereas you feel insecure and losing self confidence especially when you know that you do not have many options to choose from. Therefore, seek guidance of Your Personal Financial Mentor if you want to maintain a good credit rating because he can help you streamline your financial goals and manage your expenses efficiently.
Having a bad credit score is definitely not a good thing for anyone. That is why it is very important to be always mindful of our financial obligations, as one wrong move may just result into something you will regret in the future. However, there are still lots of ways on how to improve your credit score. These ways may take some time and effort, but the important thing is, you are able to undo those past mistakes and start over a new leaf. For example, you can start to learn some types of consumer credit.
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