A credit score is a key determiner that is used for measuring your financial health. It tells lenders at a glance how responsible, authentic and credible as a person you are. In a nutshell, a good credit score opens the door for tons of golden opportunities. If you take some time out of your busy schedule to improve your credit score, you can attain a good credit score in no time.
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Bad Credit Score Can Affect Your Life
Do you know the amount of debt you carry can have the biggest impact on your credit score? Even if you mess up once, your credit score will plunge and in return, it will negatively impact your daily life. People judge your credibility and authenticity on the basis of credit score, so having a bad credit score can make your life extremely difficult- from bagging that dream job to getting an apartment to live in. All thanks to the bad credit score, but if you are aware of how a low credit score can impact your daily life, you can save yourself from all the trouble.
Point To Be Noted: A Bad Credit Score Can Affect Your Life, Choices, Reputations, Needs- Almost Everything
7 Ways Low Credit Score Can Impact Your Daily Life
Difficulty in Getting a Home Loan
A good credit score can help you buy your dream home. If you are looking for a mortgage and a low-interest rate to buy a home, then having a good credit score is a must. Unluckily, if you have a bad credit score, there are chances of getting rejected for a home loan. Somehow, if the bank agrees, then get ready to adhere to their strict terms and conditions and to pay a higher interest rate than usual.
Difficulty in Getting a Car Loan
Do you know that banks check your credit score even for a car loan? If you have a very low credit score, you might be rejected for a car loan altogether. If you are lucky and you somehow manage to get the approval, you will be charged with a high-interest rate on the principal amount, which ultimately leads to a higher monthly payment.
Difficulty in Acquiring Capital for Starting Your Own Business
Newly born start-ups often require the support of financial institutions to help fund their business operations. In case you have a bad credit history, banks will limit the amount and won’t give you a loan of the full amount as demanded by you to start a new business. At this point, no matter how solid your business plan is or promising it seems, it won’t help.
For Instance: Hypothetically, let’s say you apply for a loan of ₹10 Lakhs with a bad credit score and history. Then in this scenario, the bank will limit the amount and might approve your loan of ₹5 Lakhs only.
Facing Difficulty in Renting an Apartment
Many people are ignorant of the fact that landlords check your credit score before approving a rental application. So if you possess a low credit score, then it can get challenging for you to rent an apartment in any prime location. If somehow any landlord gets ready to rent their home to a person with a bad credit score, then in return as a favour, they ask for a higher security deposit.
Getting Rejected From a Job
Are you aware that for certain job positions or companies you ought to have a good credit score history? A good credit score is a must for job positions for upper management and finance. You literally can get rejected for a job because of bad credit history or due to negative remarks on your credit report, especially on the basis of bankruptcy, high debt amounts and outstanding bills.
Note: Most employers check credit reports and not credit scores. They might not be focusing on your bad credit score, but they can look for negative pointers that can affect your work performance.
Getting Repudiated For a Post-paid Mobile Plan
Getting denied for a cell phone contract just because of a bad credit score often shocks people as no one expects that they could ever be turned down for a cell phone contract. But this is true my friend, they have the right to do so. Many cell phone companies check your credit history when you sign up for a postpaid mobile plan service. If your credit score is too bad, then you will be left with a single option that is getting a prepaid mobile plan.
Love Breakup Due To Low Credit Score?
Are you wondering how a credit score can affect your love life? All the people out there who are planning on getting married anytime soon, read this judiciously. We are assuming you have discussed with your potential partner about your credit scores, credit report and financial situation. This is an important discussion because once you get married, you are going to be sharing a lot of fiscal responsibility. Well, allow us to clear the biggest misconception- the credit scores of married individuals don’t combine together once married. However, you guys will be responsible for each other’s debts or for any joint financial decisions you make such as car loans, mortgages, etc.
So, if you are investing your time in any long-term relationship, it is always good to have an idea about your partner’s finances. Square Yards wishes the best for you, we hope you have a great love life together.
Tips & Tricks To Improve Your Credit Score![]()
- Try to maintain a decent repayment history
- Try to pay your bills on time and in full amount. For Instance: You can count on the Auto Payment option.
- Recurrently check your credit report.
- If any discrepancies are found in the credit report, file a complaint with a credit bureau.
- Never apply for multiple credit cards at one go.
Hard to digest, right? We know this is too much of an impact on your daily life. Just be cautious and don’t let a bad credit score deter you from getting your dream job, first car, home or anything which you want in life but comes at the expense of something.
Also, hard work, efforts and consistency are the keys here as improvement in credit score rating does not happen overnight. Just be patient, rest everything will fall into place.
