Most of the people tend to go berserk when they get a credit card. For people who do not know how to manage finances, credit cards can do a lot of harm than good. Considering it to be ready to use money, people tend to use it for just every conceivable purchase they make. Not only do they spend beyond their means, but they also fail to repay their dues on time. both these factors combined together forms the perfect recipe for bad credit history.
Bad credit history can be very devastating to your financial well being. There are a lot of side effects of falling prey to poor credit. Almost every aspect of life today is either directly or indirectly related to your credit history. Let us take a look at some of the side effects which may cause you to lose your peace of mind.
The first and foremost side effect is that no bank or financial institution will be willing to fund you financial needs. Anytime you need a new credit card or a loan, you will be given the least priority. In most cases, credit card and loan application forms will be outright rejected by the lenders. Even the few of them who might be willing to take the risk of lending you the money might charge you an arm and a leg in the form of interest rates and fees.
Did you know that a bad credit history can even cause problems in getting mobile phone contracts? Most of the cell phone service providers these days are taking a look into the credit history of a person before deciding to render their services. A poor credit score means they are at higher chances of losing their money and hence they think twice about providing you their service.
In modern times, getting a job is dependent on your credit history. Weird though it may seem this is true! Most companies are of the view that the credit history reveals a lot about the dependability and commitment of the candidate. Hence, their final decision is based on what they see in your credit report. Despite clearing all the rounds of interviews successfully, if you are still struggling to get that job, it is time to take a look at your credit report and repair it at the earliest.
Remember, your credit history has a very crucial role to play during your lifetime. It is imperative that you maintain a clean report void of any blemishes.