HOW BAD CREDIT AFFECTS YOUR LIFE (AND WHAT YOU CAN DO ABOUT IT)
As millennials, most of us had no clue what a credit score was or why we needed one while we were growing up. We got a rude awakening, though, when we got out of college and discovered that our low credit scores wouldn’t qualify us for a loan on a car, an apartment, or even a store credit card to purchase a new TV or a game console. The latter are just three examples of reasons why good credit is important. Because if you don’t have good credit, you don’t get the loan for the car, or the apartment contract, or the newest game console that you can’t afford to pay cash for. With bad credit data, all you get is a big fat nothing. Here are 4 ways bad credit affects you and prevents you from living your best life.
It Can Prevent You From Buying Cool Stuff On Credit When your credit stinks, banks, credit card companies, and stores that offer credit card are far less likely to agree to give you any kind of a break. This means that if you want to buy something and you don’t have the cash for it on hand, you can’t make the purchase. You may be thinking, “Well, if I don’t have the money in the first place, maybe I shouldn’t be trying to spend money that’s not mine.” Hold up: there are plenty of situations where credit cards are useful, even essential, and aren’t just used for frivolous shopping sprees. Let’s say, for example, concert tickets for your favorite band go on sale on Monday. But you don’t get paid until Wednesday, and you know all the good seats will be sold out by then. If you have a credit card, you can use that to go ahead and order the tickets on Monday, and then pay back the balance when your check is deposited on Wednesday. Another example is if you need to stock up on groceries before an emergency, like going out of town unexpectedly or a natural disaster like a winter storm (or even a pandemic). A credit card will come in handy if you already used up your grocery budget. But if you have bad credit, you probably can’t even get a small line for emergencies.
It Can Prevent You From Taking Out A Loan
All the big things we want in life – a car, a house, an in-ground pool, you take your pick – usually cost a lot more money than we can save in a short amount of time. That’s why we take out loans (while also putting some of our own money down), so we can move on with our lives and pay for the big things as we go. Bad credit brings all the big, fun, adult things you want to do to a screeching halt. Lenders – reputable lenders, that is – are unlikely to give you a loan if your credit score is sorely lacking or just simply nonexistent. Your low score tells them that you may not be able to make payments on the loan, which means they’re probably just throwing their money away at you. You can have the best income and the best repayment plan in the world, but if your credit is bad, you can forget being able to take out a loan at a reasonable interest rate.
It Can Ruin Your Personal Relationships Bad credit doesn’t just affect you: it can leach into everyone and everything in your immediate circle of relationships like poison. Your bad credit may prevent you from being able to take out a loan for the car your partner needs to drive to and from work. It may cause landlords to deny your application for an apartment, thereby leaving your partner, roommate, or family high and dry with no place to go. Even more alarming is the fact that bad credit is often caused by, and leads to, financial troubles, which are one of the leading causes of divorce. Bad credit isn’t just about you not being able to get what you want. It also means you’re often not able to get what you need to provide stability and security for your loved ones.
It Can Make You Feel Depressed And Inadequate
When your credit score is so low that you are denied loans and credit cards everywhere you turn, you might become deeply depressed. Not only that, you might feel that you are inadequate as a human being. You just can’t seem to get your finances in order, no matter how hard you try. This kind of negative thinking is damaging to your psyche and might cause you to become lethargic and morose. Financial stressors like bad credit can lead to even worse consequences than depression, however. In a study published in 2020 by the American Journal of Epidemiology, researchers found that individuals undergoing severe financial strain are at 20 times more risk for committing suicide. The severe effects of bad credit cannot be understated, as it can literally be a contributing factor to death.
ScoreNavigator – A New And Affordable Solution For Our Generation
When you’ve exhausted all your resources and done everything you can think of to improve your credit profile, where else can you turn? It’s time to put all your worries at ease and check out ScoreNavigator. ScoreNavigator is a program of carefully curated tools and resources that will help you get your credit back on track. From easy-to-use budgeting tools, intuitive credit reports, and awesome simulators that will tell you exactly what you need to do to maximize your credit profile, you’ll find yourself becoming more empowered and knowledgeable about how your credit really works. Try ScoreNavigator today and become the financially successful human being you always wanted to be.