The need to repair 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 » The need to repair bad credit history

The need to repair bad credit history


Updated: December 26, 2012

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

Using credit cards without restraint and not making your payments on time may give you a few dollars extra to spend on parties and pubs and many other fun things. However, when the collection agents arrive at your doorstep or you don`t have any balance left on your credit card, it is reality time! Most youngsters, who get credit cards with the intention of building a good credit history, end up spending foolishly and find themselves facing huge debts and a bad credit history. Having a bad credit history is sure to put your financial well being in jeopardy. Here are a few reasons why you should consider fixing your bad credit history.

High interest

People with bad credit don`t stand a chance of getting any credit cards, auto loans or mortgages. Lenders, who are willing to make exceptions, charge very high interest rates. Hence, over a period of time, you will end up paying more interest than you would have if you would have had good credit history.

Denial of employment

If you thought bad credit history would impact just the chances of getting your next credit card or loan, you are in for a surprise. Bad credit will also impact the chances of you landing your next job. Prospective employers are now taking a look at credit history of potential candidate before offering them a letter of employment.

Lack of cell phone contract

Before issuing a contract to you, cell phone companies are now looking into the credit history of the person. They establish the credibility and reliability of the person based on this report. If you have a bad credit history, you may have to settle for a prepaid cell phone service.

Increased premiums

Just like every industry in the market today, even the insurance providers take a look at the credit report of the person before issuing a policy in their name. A poor credit score would imply rejection of the insurance policy. Even if the companies agree to provide a policy, it will be at higher premiums.

Security deposits

Getting cable, phone and electricity connections will also prove to be a concern if you have a tarnished credit report. You may be denied the connection and those companies willing to give you the connection may ask you for a security deposit.

In addition to these, there are many other repercussions of having a bad credit history. It is imperative to take the bull by the horns and tighten the leash before things get out of hand.

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 Secured Credit Cards: September 2020 – Experts’ Choice

Top 5 Secured Credit Cards: September 2020 – Experts’ Choice

Posted: June 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Top 5 Soft Pull Credit Cards: September 2020 – Experts’ Choice

Top 5 Soft Pull Credit Cards: September 2020 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… Continue reading

Top 5 Store Credit Cards: September 2020 – Experts’ Choice

Top 5 Store Credit Cards: September 2020 – Experts’ Choice

Posted: May 30, 2020

We evaluated store credit cards offered by our partners to find the best store credit cards. They are often loaded with perks that will allow you to save on purchases at your favorite retailer. Plus, many store credit cards are available… 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!