Implications of a bad credit history

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 » Implications of a bad credit history

Implications of a bad credit history


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

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.

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!