For many people, regularly checking and maintaining a healthy credit score is not a priority. While some have fantastic credit scores without much effort, others will need to improve theirs. But having an out of sight, out of mind approach is never going to accomplish this. But there will be a time when your score needs to be checked. While you may not see it as something important, it can make your life very difficult indeed. With more companies checking credit scores for reliability, your score can make an enormous impact. So to show you why you need to improve your score, take a look at this list of unexpected ways bad credit can affect your life.
Losing or Preventing Employment
If you are finding difficult to gain employment or progression at work, your credit score could be to blame. It’s not unheard of for employers to check the credit report of their current employees or potential candidates. Some industries such as the financial sector will require employees to have a healthy report. Your employer will be looking for outstanding debts, late payments and files for bankruptcy. These harmful elements could affect your overall performance at work. If your report is not up to scratch you may get overlooked for your dream job, miss out on a promotion or lose your current job altogether. This can prevent you from paying your bills, supporting your family and could even make you homeless. All of which are things you understandably want to avoid. So take a look at the credit repair companies on this page https://
Getting A Smartphone Contract
With attractive deals continually being offered, there aren’t many people without a phone nowadays. Usually, the contracts on the latest smartphones are at least two years long and require punctual, monthly payments. This allows you to use the phone to it’s full capacity, whether it’s for business or leisure. Cell phone companies can deny you the latest model of phone if your credit score is not to their standards. They want to determine whether you will be able to make your monthly payments to them or not. So if your credit report is full of late payment, especially to other cell phone companies, they will be put off straight away. This can prevent you from getting the up to date model and software you need to run your business or communicate with loved ones. You could get a pre-paid phone instead, but these are often more expensive which isn’t ideal if you have lots of debt to pay off. By increasing your credit score, you should have no trouble in getting the latest handset with a manageable monthly contract. Meaning you can stay connected and up to date.
Difficulty Finding A New Home
For many people, owning their own home is a dream come true. But a bad credit score can often put a halt to that dream becoming a reality. Banks and lenders will check your credit score to determine whether you are high risk or not. This score has risen in recent years, making it even more difficult for those with poor scores and reports. If you’re score is below their requirements, they can deny you the mortgage deal you require to buy a house or apartment. You may have late payments on utilities or a previous mortgage. Or large and outstanding debts that could stop you from paying your new mortgage in full each month. This can be a profoundly upsetting realisation for you and your family, especially if you have outgrown or lost your current home. While you may be able to visit a specialist lender, their interest rates and fees will be more expensive.
This issue can also affect those who want to rent a property too. Landlords and rental agencies will do similar checks to the banks and look for possible red flags in your report. You may have to pay a higher security deposit or a full terms worth of rent beforehand. Whether you’re renting or buying, being homeless is not something you want. This should give you the drive to check and enhance your score to avoid this possibility entirely.
Losing Important Relationships
If denied a loan from the bank due to their poor credit score, many people will turn to their friends and family for financial support. While this can give you the money you need to get by, it can also have catastrophic results. If you are unable to pay back the money you have borrowed or continually ask to borrow more, an enormous strain will be put on the relationship. This can lead to arguments and the end of marriages, friendships and family connections. Some people are so ashamed of being denied a loan that they will sell their belongings or steal from their loved ones. Which too can cause a loss in trust and loyalty amongst family and friends. Losing these important relationships due to a bad credit score is something that can be avoided if tackled early. Even if you think your score is going to be good, it’s always better to check than risk losing those around you in the future.
If you discover your score is not as good as you had hoped, talk to your loved ones even if you’re embarrassed to. A problem shared is a problem halved after all. They will be able to help you change your spending habits, which in turn will boost your score to make you seem more appealing to lend to.
If you weren’t aware of the effects a poor credit score can have on your life, these examples might come as a bit of a shock. But by knowing how challenging it can make your life, this should encourage you to do whatever it takes to improve your score today. So don’t put your credit score to the back of your mind again and change it for the better instead.