DON’T LET BAD CREDIT HURT YOU
Once upon a time, bad credit meant that you couldn’t obtain credit at a good rate and terms, but you were still able to get credit cards (with high rates and fees), an auto loan even a mortgage and although, it is more difficult today, many times you can still do so. What a lot of people don’t realize is that credit affects so much more of your life today. Let’s examine a few scenarios shall we?
1) Personal relationships: (Already wondering how)? Relationships have been known to end over one partner’s displeasure with the “bad†credit of their partner. How are you planning on building a life together with someone who can’t take care of their own? It’s one thing to marry for love, but quite another thing to marry for debt. Do you really want to take on someone else’s debt load? Did you know that in a divorce, those credit scores can be used as leverage in dividing a couple’s net assets? — OUCH
2) Renting a house or an apartment: Yes, good luck with this “what used to be just pay an additional deposit scenarioâ€. Today, bad credit can actually prevent you from living in a certain community or complex. Landlords look at your credit report before deciding whether you will make a good tenant. It’s simple, if they see that your credit report is demonstrating that you don’t pay your bills, do you really think they want you take a chance on renting to you? Sadly, a person’s character is now depicted by their credit score and credit composition. — OUCH
3) Finally getting that DREAM JOB: Ooops, perhaps not! Today not only is it legal, but it’s also expected that would-be employers with your permission will look at your credit report and use that as part of the hiring decision. Here’s a typical example: You’ve been working as a “teller†in a bank for many years doing well, getting your regular “yearly salary increases (which usually don’t even keep up with inflation) and a job opening becomes available as a loan officer which would pay substantially more! Oh how helpful that extra income would be, wouldn’t it? NOT if your employer feels your credit is a train wreck! Again, how can you decide on a perspective borrower regarding finance issues, if you can’t handle your own finances? — So says a bad credit report. — OUCH
4) Auto and home insurance: Did you know that what you pay for auto or home insurance is based partly on your credit? For some insurance companies, it can actually be a deal breaker as some car insurers believe there is a direct correlation between creditworthiness and one’s propensity to be in an auto accident. In some states this is illegal. Hopefully, it’s one you live in, as for most of them that are legal use a bad credit history to deny coverage completely or substantially increase your rates (monthly payments). You’d be shocked what two people, one with good credit and the other with bad credit would pay for the same coverage on the same vehicle or home. It could be almost DOUBLE! — OUCH
5) Utilities – Electric, gas and water companies usually check your credit to see if you “qualify†for service. A bad credit report doesn’t mean you won’t be able to get cable, electric or a cell phone, but you might be required to put up a deposit to get service. Hmmmm more money! — OUCH
6) Professional Licensing: The Fair Credit Reporting Act specifically permits the usage of credit report findings by government agencies that regulate professions. Now imagine you’re in medical school or nursing school and now can’t get your license to practice because of a poor credit rating. There goes your very livelihood; your dreams… — OUCH
7) Buying a home: The “American dream gone nightmareâ€! Needless to say after the economic downfall some years back, thousands and thousands of people lost their homes to foreclosures for a variety of economic factors. What used to be sign on the dotted line and here are your keys to your new home with easy (compared to today) pre-approvals days are a thing of the past friends. Although now is definitely a great time to buy a home with prices being so low due to short sales and foreclosures flooding the market, qualifying for a mortgage has gone to the other extreme. Where if you had bad credit before, you could still purchase a home (with higher interest rates and perhaps a small deposit). Today, ha! You must meet a minimal threshold which has risen considerably, you cannot have major derogatory credit and you can expect to be required to place a substantial down payment. — OUCH
8) Starting your own business: (another dream many of us share) Who wouldn’t love to own their own business? Well guess what? Unless you have the “money roll†to support the expenses of a new business then you need good credit to serve as a guarantor and grow your business through borrowed funds (a loan, credit cards, etc…). Many franchisors use credit checks in deciding whether to license a potential franchisee. — OUCH
For information on getting your credit back on track and stopping it causes, please visit us at www.ezcreditrepairnow.com or call us at 800-385-0743! We can help
(Yes, nationwide).