5 ways in which bad credit history could hurt

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » 5 ways in which bad credit history could hurt

5 ways in which bad credit history could hurt


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
Bad credit history is often characterized by inconsistent bill payments, outstanding dues on a credit card very close to the credit limits available on those credit cards or lot of late payments or entirely missing bill payments in some billing cycles. A bad credit history is not a welcome sign especially if you need loans, credit cards in the future or other financial assistance. The reason is simple. Every time you approach a lender for financial assistance, the first thing that is done is to request the 3 credit bureaus for your credit history, which is it is a great asset that you build over a long period of time and yet easy to ruin within no time. Here are some of the ways in which a bad credit history can hurt you very bad. You cannot get a personal loan easily Personal loans are taken when you need smaller or manageable amounts of money for expenses that cannot be covered by your savings or your monthly income. Whether it is for your wedding, for items in your house or to get furniture, personal loans prove quite handy. If your credit history is bad, getting a personal loan approved for a decent interest rate could be very difficult. It means that you have a lesser chance of getting financial help when you are in an emergency. The interest rates on your credit cards would always be higher By having a high APR on your credit card, you are being exposed to risk of paying higher interests on your outstanding dues when you miss your card bill payments. Higher interests could accumulate quickly and add to your principal outstanding causing your debts to increase exponentially. Your credit cards have fewer rewards A bad credit history invariably means that the credit cards approved for you will not have attractive features or incentives. Whether it is cash back offers, 0% balance transfer initial periods, frequent flyer miles or discounts at gas stations, grocery stores or shopping malls, they are all reserved for those credit card customers who have a very good credit history. It means that because of a bad credit history you are losing a good chance to reap a lot of benefits and also missing the opportunity to save quite a lot of money. Vehicle loans and Insurance are more expensive Those who have a bad credit history often get more expensive vehicle loans as well as higher premiums on insurance. This means those with bad credit history often get trapped in situations where their debt is likely to go even higher. Higher interest rates on vehicle loans make it harder to repay them. The same is the case with insurance premium. The higher it is, greater will be your monthly expenditure. Thus a bad credit history will not only mean higher interest rates, it will also translate to less savings in the future. Bad credit history could be a problem for getting houses on rent or jobs Employers and land owners too might ask the credit bureaus to get the credit history.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!