What are the potential consequences of a bad Credit Rating?
A bad credit rating can have a significant influence on your personal life. High stress levels in the home and work environment can often be linked to poor credit ratings and an inability to borrow. Financial worries are often cited as one of the main contributors to ill health and fractures in personal relationships. Credit cards for bad credit are available, but you will need to look around for them.
Longer working hours are often required of those in such a situation to enable them to pay off the higher interest rates that those with a poor credit rating are exposed to. These longer hours are exacerbated by the fact that those with a poor credit rating often have less disposable income, due to the demands of a high level of debt, leaving them without adequate finances for holidays, pensions or retirement.
Such issues, in collaboration with the fact that owing large debts and being subject to high interest rates will mean many people are unable to pay off their debts within a lifetime, show how great an impact a poor credit rating can have on every aspect of your life.
A poor credit history may also make it more difficult to successfully apply for a mortgage on your first house, while in a relationship a poor credit rating will also affect the ability of both parties to borrow. Some landlords will run a credit check before allowing a property to be rented, meaning that any form of accommodation agreement may be difficult to reach with a poor credit history.
Many utility companies will run credit checks to ensure their services can be paid for, while the practice of employers running background checks on credit history to ensure they are hiring a responsible and diligent employee is on the rise.
Poor credit ratings will have a great affect on your ability to choose the right product for you in many situations. From selecting a credit card that works for you, to getting cheap and comprehensive insurance, a poor credit rating will severely limit your options as a consumer.
Many people with a low credit rating may struggle to find even relatively small goods, such as mobile phone contracts, difficult to negotiate.
Working on your credit rating can help you get back on track and help you regain your financial independence. This in turn could make it easier for you to negotiate contracts such as these.
There are specialist poor credit credit cards that you can apply for and that can help you rebuild your credit rating, it is just a case of looking in the right places.