Disadvantages of having bad credit history, How it Affects you

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Disadvantages of having bad credit history, How it Affects you

Disadvantages of having bad credit history, How it Affects you


Updated: December 26, 2012

By
Add to Favorites:
Credit card users are always fond of availing as much as the maximum allotted card limit but have the tendency to ignore the bills when it comes due. Ignoring credit card payments have an impact on your credit score. These may result to some consequences you might face if you continue to overlook your responsibilities with your credits. Here are some examples of the inconveniences you might encounter. 1. Denial of future credit card and loan applications. Lenders and creditors nowadays checking records of borrowers. When they see that you have a bad record, they can deny your application. 2. Rejection from some job applications. Some employers evaluate the applicant`s credit history before hiring them. A bad credit history is a sign of irresponsibility. This may eventually affect your application and not get hired when you have unsettled credits. 3. Refusal of utility companies to provide you with service. Electricity and cable companies always checks on the applicant`s credit history. Since most of the payments these days are done through checking accounts or credit cards, if you have a bad credit history, they have the option of not approving your application. It is a risk for them to render service to someone who can`t pay on time. 4. Denial of car loan application. Banks are required to ensure the applicant`s credit record. If they see a bad credit record they might in turn give you a higher interest rate or deny your loan application straightaway. If you have to apply for a car loan, you will probably have to get a cosigner. The bank cannot trust you alone. You can`t avail of the rebates and they might even give you a high apr (interest rates) and you are required to give a huge down payment. 5. Disqualification from promotions offered to new phone applicants. Phone companies will ask you for a higher deposit fee to avail of phone services. 6. Reduced availability of business opportunities. Every bank, lender or creditor will always require you to submit your credit history. Bad record means you can`t invest in any business or even get investors. Ask yourself, why should anyone invest in something that would in the end be a liability rather than an asset because the supposed income will only become a debt payment? Everything around you revolves around our credit history. If you haven`t settled your responsibility then you will have much more greater liabilities which in turn could lead you to bankruptcy. You have to be responsible enough to control ourselves when using our credit cards and not be a big spender. Be diligent in making your payments, this enables you to gain more trust when you plan to borrow. Live on necessity not on luxury. Being financially responsible prevents you from having too much accountability. When you have a large amount of money for your disposal, never be careless enough to spend it all at once. Reserve your funds; it is always wise to save it in case of a rainy day.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

SoFi Making Lending Social

SoFi Making Lending Social

By Dar Dowling, Posted: April 26, 2017

Since 2011 SoFi, a San Francisco based online lending company, took the lending industry by storm, when they became the first online lender giving people access to affordable student loan refinancing. Continue reading
Affirm: A ‘Friendly’ Credit Alternative

Affirm: A ‘Friendly’ Credit Alternative

By Angela Rose, Posted: April 5, 2017

In 1789, Benjamin Franklin wrote, "In this world nothing can be said to be certain, except death and taxes." His statement holds true even today - especially when it comes to personal finance tools such as credit cards. Continue reading
5 Reasons to Get the Capital One Venture Miles Rewards Card

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading