People With Bad Credit
Problems That People With Bad Credit Face
Many people with bad credit do not realize how bad credit can affect their financial future, including their ability to receive credit at a reasonable interest rate in the future. But people with bad credit can face difficulty other areas of their lives as well. There are a number of different ways that bad credit can wreak havoc with a person's life and the ways listed below are some of the most common ways that bad credit can hurt you unexpectedly.
Although most people with bad credit
are aware that bad credit can affect their ability to obtain credit in the future, many do not know that bad credit can affect their existing accounts. If a person with bad credit falls below a certain level, they may find that the interest rates for all of their accounts have skyrocketed because they are considered to be a credit risk. Higher interest rates on previous balances combined with an inability to obtain more credit or personal loans has caused numerous people with bad credit having to file bankruptcy.
A person with bad credit can be very limited in where they will be able to live. Many people with bad credit know that bad credit can disqualify them from purchasing a house, but they may be unaware that having bad credit can disqualify them from renting a house or an apartment. Although not all landlords are concerned with more than the person's previous rental history, people with bad credit have a much harder time being approved for a rental than people that have fewer blemishes on their credit report.
Landlords review the credit histories of possible tenants to determine the risk they pose to the property or whether they can be depended on to pay their rent on time. People with bad credit may be viewed as less trustworthy, so the landlord may refuse to rent to people with a credit rating below a certain level. As long as the rental application is not denied on the basis of race or sex and all applicants are treated in the same manner and subjected to the same rules, the landlord’s actions are perfectly legal and will be upheld in a court of law.
It is difficult to imagine how bad credit and obtaining employment are linked to each other, but bad credit is one of the leading reasons for being passed over for employment or a promotion. Certain employers review a person's credit history to determine how responsible the applicant may be and any position of trust, such as government or law enforcement positions, will review this information about the applicant to determine their security clearance. People with bad credit face many more obstacles in life than people that have kept negative information off of their credit report. If you have bad credit, it is very important to begin repairing your credit as soon as possible so that your bad credit will not affect other areas of your life.