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Research: Implications of a bad credit history - Credit-Land.com

You might be a stage in life where you are fretting about all the problems that a bad credit history is giving you. Things just don`t work out as fast as they would if you had a clean credit record. This can get very frustrating. We shall look into just a few of the implications of having a bad credit history.

The main problem with not having a good credit history is that no bank would be willing to trust you. And if the banks do not trust you it means you will lose out on the only lifeline which can bring you out of a financial mess if you ever do get into one. Hence it is very important to ensure that you have a good credit record at all times. Many banks might simply refuse to give out credit to you because of your bad credit record. And some of them might be willing to give you credit but the problem would be that you would get a loan with a very high interest rate. A loan at such a high interest rate will just not be practicable for your venture whatever that may be.

Having a bad credit history can also make you ineligible for even a credit card. These days credit cards are a basic need for anyone in society. More than being a necessity, it`s a convenience to not have to carry around cash in order to make purchases. And its also a lot safer. And even if you do manage to get a credit card with your tarnished credit record, you will most probably end up with one which is having a very high interest rate attached to it. Such cards would be extremely impractical to use in daily life. And also you will most definitely lose out on all sorts of rewards and bonus points that other normal customers would get with the same credit card.

All in all you need to realize that basic things that others would take for granted would no longer be a given for you. Getting a loan from a bank for a car or a home would take a lot of coaxing. And even after all that, you would have to give a lot of collateral or proof that you would be capable of returning to loan that you have borrowed from them. The implications are widely spread and painful to say the least. Hence it would be in your best interest to make sure that you do not spoil your credit history by splurging during your adolescent years.

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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.