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Bad credit history is something that you cannot get rid of very easily. Its effects keep showing up in one way or the other. There are many side effects of having a bad credit history which is why it is so very important to repair a bad credit history. The biggest problem with having a bad credit history is that it becomes very difficult to get loans and credit cards. As your creditworthiness decreases, the number of options you have when it comes to borrowing money or getting credit, also reduces. If you want to take house loans for getting your dream house, things might just slip away from your hands because it takes lot of time to generate the credit required.

The next disadvantage of having a bad credit history is that when you finally manage to get a credit card, the interest rate is very high. This is very risky because if you miss a monthly payment, you might end up paying lot of interest which could accumulate over time to give you a high outstanding balance reducing your credit score further. The other bad part is that you would not be able to get credit cards with reward offers, as most of the rewards are for those customers with high credit scores. Some of the terms and conditions could become confusing because most of the offers are valid only for higher credit score customers. This means that is a credit card shows an offer of 0% APR during the initial period between 6 - 18 months, one with a lower credit score might get 0% only for 6 months while the term period is for 18 months for someone with a longer credit.

Getting a job or a phone connection also becomes difficult for someone with a bad credit history. Many employers actually go to credit bureaus for the credit report of the applicants they are considering and one might miss out because of the credit history. The same holds when you apply for a new phone connection. Electricity and cable connections need security deposits if your credit history is bad. This means you will face considerable trouble if you have a bad credit history and you are required to relocate to a different place. Similarly getting yourself a new house and apartment might prove really difficult for those with a bad credit history. Even if you want to rent an apartment in the new place you might face a problem, because some landlords insist on getting credit reports before they let out the house.

Bad credit history basically makes it very difficult for one to get the minimum requirements including house or apartment, car, phone, cable and electricity connections. Higher insurance premiums and roadblocks when you want to start your own enterprises could get often frustrating and it might take a while before your credit card history is repaired. This is the reason why you shouldn't let your credit history slip by a lot.