How bad credit affects your everyday life

How bad credit affects your everyday life

Bad credit.  Those two awful words you hate to hear.   You can still get loans with bad credit, but your interest rate will be much higher.

Everyone has a reason when they are told their credit is bad.  Most of us forget to make a payment on time.  Your credit score is impacted by each and every payment you make late. If you want bad credit to turn to good credit, then you must take the necessary steps to bring your credit score to one that is acceptable to lenders.

I know plenty of people that just say, “I’m not paying that”, because their payment was late or non existent the month before and now they have been assessed late fees.  A $25 payment can be assessed a $35 late payment fee and now to get current with that creditor you have to pay $60.    If this sounds like you, do not fret.  Call your creditor and ask if they can waive the late fee if you make the payment.  Most of the time, if this is your first time being late, they will waive the late fee.

Time after time, I advise people to just pick up the phone and call your creditor.  I promise they are willing to work with you so you can get your debt paid off to them. They do not want you to have bad credit. They want you to pay off your debt, so you can have more debt with them.Your credit score and your bad credit impacts so many things in your life.  Many employers will run a credit check on you and if you have bad credit, you won’t get that job.  Your car auto and home insurance rate is based on your credit worthiness. Renting or leasing a new home or apartment often requires a credit check.   If you have less than perfect credit, you will not get that place.  Or, if you do, you are often times charged a higher deposit or higher rent

I think the group of people that are self employed have the hardest time getting a loan.  Why is this?  Most creditors can verify employment  through pay check stub or knowing the minimum pay scale for your job.  Self employed loans require so much more .  You need several years of tax returns to show you are making a profit. They want income statements, profit and loss statements to assure you are credit worthy.  The risk to creditors for those that are self employed seem to be high. Miss a payment while you are self employed and your credit score tanks and creditors are less likely to make any loans to you.

If you have been denied a loan due to bad credit, you will get a letter staying why.   Check your credit report, there is a possibility of a mistake in your credit file.  If there is, you need to let the credit reporting agency(ies) know.  You can dispute this and get your credit back on track.  There are so many things you can do if you have bad credit,but you have to be willing to do the work to get yor score to one that is favored by creditors.

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