How a Low Score can Hurt
Many individuals know that having a poor credit rating is not in their best interests but they are not really tuned in to just how a low score can hurt them in many different ways. Often they only discover this when they go to apply for credit and find out that their credit score is affecting them.
How a low score can hurt when applying for credit cards:
Most individuals now when looking to obtain a new credit card want to go for those that are going to offer the best rates and premiums. What they don’t realize is that their credit rating can actually stop them from being approved for these particular cards. They may be approved for the sub standard types but these are going to come with less perks and higher interest rates. Then these in return can be difficult to maintain and keep the payments up on, and before long the shaky credit rating now becomes a bad one when it comes to the credit score.
How a low score can hurt your renting opportunities:
In the past, not paying your rent on time didn’t adversely affect your credit report. Now more landlords are beginning to report late or missed rent payments to the credit agencies. Or what can happen is your landlord can begin to use the services of a collection agency to collect payments for your rent that you owe. In this case there is a good chance it is going to show on your credit report.
How a low score can hurt your chances for getting medical treatment
You may not realize it but your health care providers have the option of reporting your unpaid bills to the credit bureaus. Ideally what you want to do is come to some sort of financial arrangement with these medical professionals to get your bills paid off before it gets to this point.
How a low score can hurt your chances to purchase your home
Buying a home should be an exciting adventure but if it ends up that you can only qualify for a mortgage with a high interest rate then this takes a lot of the enjoyment out of home ownership. This is a long term investment so you want to be able to qualify for the lowest interest rates possible. A low score for your credit can diminish the chances of this.
How a low score can hurt because of your tax situation
You may have run into difficulty with the tax department and have unpaid taxes. If it is gotten to the point where they have put a lien against you and this is a public record. Public records that deal with your finances can appear on your credit report and as a result it will lower the score. One thing to keep in mind about tax liens in particular is that they can remain on your report for a lengthy period of time.
How a low score can hurt your chances to get a simple cell phone
Whenever you are applying for our credit quite often this will show on your credit report. But it isn’t just for loans that this may be the case. If you are buying products such as a new cell phone for example, where you are going to be taking out a cell phone plan, then the provider may do a credit check on you. Depending on the type of credit check done it can show on your report as a credit inquiry and could have an effect on lowering your score. If you already have a low score then there is good chance your cell phone purchase with plan will be denied.
How a low score can hurt your efforts for opening a bank account
This is probably an activity that you would think would have no bearing on your credit standing at all. However some banks do a credit check whenever a potential client is going to open an account. Some people are quite surprised to find out that they have been denied the opportunity to open an account because of their poor credit.
These are just a few of many ways of how a low score can hurt. It is generally known that a low score can have an adverse effect when it comes to major purchases like vehicles. If the score is low it may prevent the purchase, or it can allow for the purchase but a much higher interest rate.