10 Ways Bad Credit Can Affect Your Financial Future

If there’s one thing that’s important to keep in mind about the future it’s that with very few exceptions, it always arrives.  Not the most profound piece of information, but it is one that you’ll do well to remember when dealing with your finances.

The point is, it’s easy to take on new credit or miss payments to get what you want now, but bad credit now can affect your financial future.  Here are 10 ways how:

1. Loan Applications Declined
When a potential creditor peeks into your history and sees it isn’t good, your loan applications may be denied.  If creditors get a sense that you will have trouble paying them back, they might not want to lend to you at all.  That’s why many people end up looking for bad credit loans to bridge the gap.

2. High Interest Rates
If you are lucky enough to get a loan approved with past bad credit, you might have to pay for it with a higher than average interest rate, meaning for every dollar you borrow, more money will be coming out of your pocket.

3. Difficulty Renting an Apartment
If you want to rent an apartment and your potential landlord does a credit check, guess who might have trouble finding a place to live?

4. No Cell Phone
The credit check also extends to cell phones.  Seems unusual that you’d need to prove your credit-worthiness just for a phone, but it happens.  If you have a bad credit history, you might have to prepay for the privilege.

5. Security Deposits
Bad credit in the past also requires security deposits on things like electricity, cable and other utilities.  Even if you’ve always paid these kinds of bills on time, they might ask for a deposit before setting up a new account in your name.

6. No Job
This one really seems bizarre, but you may be denied employment for certain jobs in specific industries if you have a bad credit history.  Obviously, this doesn’t apply to most jobs, but for positions in the finance industry or high management-type positions, you could be out of luck.

7. Hard to Start a Business
It’s tough to start up a new business without some sort of financial assistance, and if your credit history is bad you might not be able to get a loan to get the ball rolling.  This is another area where bad credit loans can save the day.

8. Hard to Get a Car
You can find some car lots that advertise no credit checks if your past credit isn’t good, but you’ll be paying a ridiculous amount of interest.  For regular car loans, the bad credit history might make them wary of taking the chance.

9. Higher Insurance Premiums
Many insurance companies link poor credit history with more claims being filed, meaning you’ll pay higher premiums if yours is bad.

10. Trouble Getting a Mortgage
Getting a mortgage is one of the places that bad credit in the past can hit you the hardest.  Finding the perfect home, only to find out you don’t qualify for the mortgage because of prior bad credit can be a devastating feeling.  Keep an eye on that credit today, so you can live the life you want to live tomorrow!

Fast Access Finance can help you on your way to rebuilding your credit score or keeping your finances on track with personal loans for people with bad credit. Contact us today to learn more about our loans and how they can get you back on track financially.