It is commonly accepted that having a good credit score can improve your life. Good credit is a valuable commodity, from getting mortgages and car loans at better interest rates to qualifying for rental apartments and finding jobs. But what about when you have bad credit?
No one wants to have a bad credit score. Unfortunately, life doesn’t always work out favorably, and sometimes bad things happen – like losing your job or getting into an accident. If you’re not careful, one minor mishap can tank your credit and cause problems down the road.
Here are seven scenarios where bad credit can ruin your day.
1. Buying a House: Mortgage lenders will always check your credit score before approving you for a lease or loan. If your score is not good enough, you may be asked to deposit a higher security amount. Sometimes you are approved for the loan, but it will cost you more because you will pay a higher interest rate.
2. Renting an Apartment: Like buying a house, your credit rating will be considered when looking to rent an apartment. A bad credit score may lead to being denied or paying a higher security deposit that you may not be able to afford. As a result, you may have to rent an apartment in unfavorable conditions or in an area you do not like.
3. Applying for a Job: Many employers now run a credit check as part of the job application process. It becomes even more relevant in managerial positions or positions requiring handling money. An employer can reject your application based on a low score.
4. Car Loan: You may have saved up for a new car or need to buy one for your family. A bad credit score will force you to pay a higher interest rate on your car loan.
5. Utility Connections: Utility company providers also require a good credit rating. They may ask you to pay a security deposit upfront if your score is low, even if you have never missed a utility bill payment.
6. Mobile Phone: You can be denied a cell phone connection if you have bad credit. You may have to switch to month-to-month contracts or a prepaid line. In the case of leasing a new phone, you may have to pay a security deposit or make higher payments.
7. Credit Cards: A bad credit score will mean that your credit card application may be denied, or you may have no option but to get a secured credit card.
If you face a problem in any of the above scenarios, Trifecta Credit Solutions serving the Baltimore, MD area, can help you. We offer credit fix solutions tailored to your needs. We also provide credit monitoring and credit repair services.