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The Damaging Effects of Bad Credit

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For years, credit cards have become a safety net and a crutch for people who need or want to purchase things for which they don’t have enough cash. With one swipe, you’ll be able to purchase that huge flat screen, shoes, or car you’ve been eyeing for a month but haven’t quite saved up for yet. Of course, many purchases are, in fact, necessary and even life-saving.

While there are those who may be flippant or impulsive with their expenses, many other people do not set out to be irresponsible with their spending. You might have emergency medical bills or other unexpected things that need to be paid. No matter the reason, credit card bills can pile up. And, if you cannot pay your credit card debt in Florida on time or at all, you’ll end up with bad credit.

Having bad credit or a low credit score can make your life extra difficult. So, unless you’re getting credit repair services in Miami, FL, you must understand how bad credit can affect you before you swipe away.

It Will Be Difficult to Have Your Loan Applications Approved

The lower your credit score is, the less likely you are to find a lender willing to approve your loans. Bad credit usually indicates that you’re a high-risk borrower, meaning lenders will see you as someone they can’t trust to pay them on time. If you want the best credit and loan offers, you must have a FICO® Score of at least 670. According to credit bureau Experian, 66 percent of Americans have good FICO® Score.

You Will Be Subject to Higher Interest Rates


While the fact that you may still get approved for a loan should be a cause for celebration, you’re still not out of the woods. Your approved loan may come with soaring interest rates, making your victory seem hollow. Since you’re a high-risk borrower, attaching sky-high interest rates to your loan is a lender’s way of ensuring you’ll pay for the money you owe them.

You Might Get Denied Employment

As if a low credit score isn’t a big enough blow, it may also be difficult to get a job given your credit standing. Some positions, especially those in the management or finance sectors, require you to have a good credit history. If your credit report shows large amounts of debt or outstanding bills, your dream job might just slip through your fingers.

You May Have a Hard Time Getting Approved for an Apartment

Like lenders, landlords want to secure that they’re going to get the rent they’re owed every month. Because of this, they check the credit report of tenant applicants. When landlords see that you have bad credit, it will be much more difficult for them to trust that you will pay your rent and other dues on time. What’s more, landlords may take you in as a tenant, but they might ask you to pay a higher security deposit.

You Will Pay Higher Insurance Premiums

The National Association of Insurance Commissioners says that 95 percent of auto insurers and 85 percent of home insurers factor credit scores when assigning insurance premium rates. This is because, for insurance companies, a person with poorer credit scores is more likely to have an increased number of insurance claims filed.

Repair Your Bad Credit Now

Don’t let bad credit get you down – there’s still a way to turn it around. By having your credit repaired, you’ll have a bigger chance of improving your credit score. Trust Debt Free Angel to help you repair your credit. With our years of experience on the subject, we’ll help you get your finances in order starting with your credit score.

Contact Debt Free Angel today for more of our services.

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