How Can Bad Credit History Cause Problems for You


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. 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. 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:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

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

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... 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!