Showing posts with label bad credit. Show all posts
Showing posts with label bad credit. Show all posts

Tuesday, November 19, 2013

A Bad Credit Will Not Just Affect Your Credit Rating ...But a Myriad of Life Aspects

If there is one thing that troubles consumers in their life is bad credit score. It seems like credit rating is a lifeline for many people because it determines how they live their day-to-day lives. Credit score determines the premium rates you pay for your insurance and the approval as well as interest rates on your personal loans. Before you lease an apartment, the landlords will scrutinize your credit score. Cell phone companies also checking your score rating to determine your reliability in payments.

Employment may be denied to you when you have bad credit rating. Essentially when your credit worthiness is bad as may be reflected by your FICO rating, it affects an array of aspects that determine the kind of life you lead. Your credit score can impact on other facets of your life. Considering that people are now rushing to secure credit cards owning to the increasing trend in offering reward perks to consumer, it is certain that consumers need to think again.

A bad credit that is below 550 points could signal a serious financial downfall. High interest rates on your credit cards and loans will be the order of the day if you do not manage your credit rating. Creditors and lenders consider bad credit applicants to have a high risk and they make you pay for this risk by attaching high interest rates to credit facilities they grant you.

A bad credit score could deny you employment because employers require you to have some good credit history especially in jobs pertaining to the upper management or the finance sector. High debt, outstanding bills or bankruptcy could deprive you a job in these high profile employment opportunities. Under the Fair Credit Reporting Act, it is within the jurisdiction for an employer to scrutinize your credit report and use the findings reasonably to award you or deprive you a job.

However, the employer should seek your permission to do that. If your credit score is bad, it may prompt the employer to closely question you and this could be a disadvantage in a highly competitive position. Credit rating is also affecting marriage relations meaning that if you contemplate having a permanent spousal relationship, you may need to examine each other’s credit score.

Personal money management as reflected by a credit rating may show how a person will manage finances when two parties decide to tie vows. Some divorce cases are resulting from inability to manage personal finances and provide for the family. If you cannot manage your finances when you are not in a relationship, it means that you may continue to face the same problem even after marrying.

According to Lisa J.B. Peterson of Lantern Financial, (a Boston financial planning group), you need to sit down and look at each other’s credit report as this is an important step if you plan to get married. One aspect that has been noted in credit score discussions before marriage is that people do not take these issues seriously before they tie their vows.

People wait too long before they discuss the personal credit score issues and probably this takes place after the marriage has been concealed. This is something that adds up to the stake of the marriage’s assets especially in divorce settlement and this is according to a New York City Matrimonial Lawyer Sheila Riesel. Bad credit rating has a long standing effect on other aspect like insurance premiums, security deposits on utilities, getting a cell phone contract, buying a car as well as starting your own business.