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Research: Disadvantages of having bad credit history, How it Affects you -

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.