How Bad Credit Affected My Life: The Awful Truth Exposed!


One simple fact: a bad credit can drastically affect your life. If you have been maxing out your credit limit and continuing to ignore bills every month then you are in for a big trouble. Although credit scores can be restored, you have to keep in mind that the process can take years.

In the recent years, most lenders have become very selective of who they loan to. The end result: borrowers with poor credit score end up being denied.

So how can a bad credit affect your life? The words that follow will expose the awful truth:

A bad credit discourages lenders to extend more credit

Instead of enjoying the benefits of an increased credit limit, lenders do not reward some borrowers with such and resist allowing them to spread balances across other cards. End result: no increased limit and a very small chance to negotiate for lower interest rates.

Purchasing and paying back a car or house loan would be a harder feat

“Bad credit affected my life in such a way that it was virtually impossible for me to secure a financing loan all because I have a bad credit.” If you find yourself in this kind of situation, then you have to know that even if you are able to take a loan, the interest rate would sooner or later kill of what’s left of your savings. Your interest rate would be a hundred percent higher as compared to those who are able to maintain a good credit score. Put it this way: Excellent credit score holders get to pay an interest rate of six or seven percent, whereas those delinquent borrowers would have to endure a fifteen to sixteen percent interest rate.


Funding and starting a business would be a bit difficult

Funding a business no matter how big or small always spells financial difficulty. So what most business owners do is seek the help of bank loans. However, a bad credit would limit your chances of loaning a big amount of money enough to fund your business. Sad truth is that even if you have the greatest marketing idea and papers to prove it.

Irritating calls from debt collectors


A call from debt collectors knows no time of the day. Oftentimes, they would even call you in the most inconvenient hour. Although having bad credit does not necessarily mean being bombarded with so many phone calls each day yet the chances of you being pursued by debt collectors is possible as you might have some unpaid balances you’ve failed to settle.

Bad credit might cost your job

There are jobs specifically those in the finance industry requiring a clean slate and excellent credit history. If you are aiming for a position in this kind of trade, you have to consider the fact that you might get rejected due to negative remarks in your credit history (high debts, outstanding bills and balances, bankruptcy). Although job positions must be all about skills and competencies, bad credit is still being considered.

So how bad credit affected my life and the lives of many others? Drastically! Not only did it change the way people see themselves as a whole, but also the way they live their lives. If you are still not making appropriate financial decisions, it is never too late to stop playing with fire that could cost you not just your financial status, but also your life.