18-Oct-2017 written by : FSI-Team
It's no secret that having a bad credit can create a lot of problems. You hear about it from your friends, relatives, and even acquaintances. However, it's possible that you don't know exactly how does it impact your life. If that's the case, this post is for you.
The following are the top 6 ways bad credit can totally mess up your life:
This is the first and most common way how a bad credit can make your life difficult.
When you have a bad credit, then securing a loan can easily become a nightmare. You can easily end up applying for a loan at one bank after another. However, this will only make the situation even worse as it will lead to frequent loan inquiries which will, in turn, damage your credit even further.
The bottom line of this is that you may have to deal with extreme money shortage when you are able to get a loan or a credit card for managing sudden or urgent expenses.
A large number of insurers have started checking the free credit score of the applicants to decide the premium costs. If your score is poor, then you may have to pay high insurance premiums. While you may save yourself from this by deciding not to get a health or life insurance at all, you still would need to get an auto insurance (required by the law) which means there will be an increased financial burden at any rate.
Don't be surprised if you find "no history of loan defaulting" listed as one of the requirements for a job. Considering credit history and credit score as benchmarks for an individual’s overall personality, financial companies as well non-financial companies have started dropping the candidatures of those who are found to have a low CIBIL score. So, if you have a bad credit, you may have to struggle for a good job in the future.
Individuals who have a low cibil score also often suffer from high stress and anxiety. This is because the reasons behind their bad credit are also the reasons why they become stressed in life. These are:
If your credit score check results in a disappointment, it's possible that you have to lower the quality of your life. This is because the individuals who have a high credit are able to get high limits on their credit cards and get personal loans easily. So, they are also able to get through tough times knowing that they have easy access to credit.
In your case, since your score is poor, the only option you are left with is to make a compromise and lower the quality of your life so as to lower the expenses.
Multiple studies have found that the people who have comparable credit scores are able to enjoy healthier and happier relationships in comparison to those whose credit scores have a big difference.
For instance, if your spouse has a high credit score, it means they have their life sorted out. It's also likely they are good with responsibilities and dealing with problems. So, if your score is low, it could suggest you have troubles dealing with responsibilities and managing money, etc. This could create problems in your relationship and make your and your partner’s life difficult.
In most cases, you can improve your credit history on your own. However, if that's not possible, you can always take help from an expert.