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How can bad credit scores affect the normal life?

By Derek Brown
Published: Saturday, November 14th, 2009

Credit report is the most valuable document as it is a mirror of your financial activities. It helps you analyze where you actually stand, what is your credit worth as on date. It is a summary document of all your loans. Credit report features a credit score, which gives you a fair idea as to where do you stand. Higher the credit score the better it is. If you have good credit score it speaks of your credentials, commitment level and moral character. It portrays that you like to value your commitments.

If you have good credit scores you can hope to bag in good job. Now a days most employers look at your credit report before they employee you. This is to check whether you are committed or not. Many a times employees are asked either to improve their credit score or leave the company, as it may affect the company’s well-being. This is because the employers doubt their character and the trust is shaken.

If your car insurance or personal insurance or your real estate insurance is expired and you want a new one, you need to show your credit score. In case you have bad credit scores you will have to pay higher premiums as the insurance companies need the assurance that you will pay your dues. This is a major set-back as in economic recession, this mean shelling out extra hundred of dollars.

Not only this, in case you need a credit card and your credit score is low, you will be asked to pay hefty sum of money as annual subscription fee. The worse the credit report, the more you are supposed to pay, to make believe company of your credibility.

The biggest disadvantage is that, it become really troublesome to obtain loans in case of any emergency or unforeseen liability. As, all the financial institutions and banks take in consideration the credit score for lending the money. In case you really have poor credit score most banks will straight away refuse to lend the money. And those who will agree will charge a very high rate of interest.

Thus, it is really mentally torturing and embarrassing having low credit scores. It affects one’s normal life adversely leaving one strangulated at the hour of the need. One cannot imagine a healthy financial life, f once the credit score goes down beyond the decent marks.

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