How Can Bad Credit History Cause Problems for You

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 » How Can Bad Credit History Cause Problems for You

How Can Bad Credit History Cause Problems for You


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
If you are one of those people that are not yet serious about maintaining a good credit score, you might want to change that. There are a number of people that fall into this category and learn a little too late as to what it is that they are doing wrong. Hence, rather than realize all this later on, when it is much harder to fix it, it might be advisable to fix things right away. After all, bad credit history has caused a number of issues which at times, take a lifetime to fix. Not being eligible for loans One of the ways in which bad credit history can affect you is in making it quite hard for you to get loans approved with minimal effort. Hence, if you have some big plans or investments to make, it might be quite hard to obtain the finances to follow it through. When the financial institution goes through your credit records and is not convinced about your financial abilities, it can be quite tough to convince them that you are actually reliable and trustworthy. To never have to face such a problem, it is strongly recommended to build a good credit record right away. Tough to get credit cards Although you might not have problem obtaining a credit card as such, you will definitely have issues in getting the good credit cards, which come with a small interest rate. These are the cards that are the ones given out to people with good credit scores and a good credit history. Moreover, bad credit history might also cause you to pay a higher annual rate on the credit card, which can significantly increase the cost of owning the card. To avoid this, it is advisable to build a decent credit record. Higher insurance rates The people that have a bad credit history are usually the ones that pay a lot when it comes to insurance. Since having a poor credit record is an indicator that the person is unable to maintain his own personal finances, it follows that he might not be able to make payments on time. Hence, if you don`t want to pay a lot when it comes to insurance, it is definitely a wise thing to be careful with your money and not simply waste it mindlessly. Make regular payments and don`t miss out on monthly bills and you won`t have much to worry about. Thus, it should be quite clear that having a bad credit history can really affect you on multiple fronts. Hence, if you don`t want to suffer the consequences of such a poor credit record, you should work from the beginning to make yourself come across as a responsible adult. If you do everything like you are supposed to and make payments regularly, you don`t have much to worry about. You should be able to easily get the best in the market, which would be low interest rates as well as stellar credit cards.

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: Winter 2019 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Posted: December 17, 2018

Nights are still drawing out, the wind is cold, and the air smells like snow already – the winter is close. Christmas and holiday season are approaching swiftly, and overwhelming gift ideas are swirling chaotically in your mind. Ready or… Continue reading

Credit Card Tips For Holiday Shopping 2018

Credit Card Tips For Holiday Shopping 2018

Posted: December 15, 2018

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household… Continue reading

Credit Cards to Save More on Holiday Shopping

Credit Cards to Save More on Holiday Shopping

Posted: November 25, 2018

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door… 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!