{"id":3705,"date":"2008-08-25T08:57:28","date_gmt":"2008-08-25T13:57:28","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/08\/25\/how-does-having-bad-credit-affect-me\/"},"modified":"2008-08-25T08:57:28","modified_gmt":"2008-08-25T13:57:28","slug":"how-does-having-bad-credit-affect-me","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=3705","title":{"rendered":"How Does Having Bad Credit Affect Me?"},"content":{"rendered":"
by Steven J. Talrechi<\/div>\n

Good credit<\/a> – it means many different things. There are a number of advantages to having good credit; these are pretty obvious. While getting and maintaining good credit involves a high degree of fiscal discipline and making payments, it is well worth the effort. So how does bad credit affect you? What are the disadvantages of having bad credit? This is a question which it takes more than a few words to answer.<\/p>\n

Lenders and credit card companies use what is called a FICO score to decide if you are eligible for any kind of financing. A score which is 720 or above is considered to be excellent and will enable you to qualify for nearly any kind of loan you request. A score of 650 or lower is when you may begin to face difficulty.<\/p>\n

These scores are calculated and reported by the “Big Three” credit reporting agencies, which are Transunion, Experian and Equifax.<\/p>\n

Financing opportunities A bad FICO score will prevent you from obtaining financing in every market. Try obtaining a mortgage to buy a house and you will be hard pressed to get that loan. The same thing applies to personal loans and car loans. Basically, a bad credit history tells lenders that you are a high risk and can’t be trusted or are otherwise unable to pay the loan back in a timely manner.<\/p>\n

Interest rates The real problem with a bad credit history is higher interest rates.<\/p>\n

The FICO score is also used to determine the interest rate you will be eligible for. A good score can get you in the door at a relatively low rate like 7% or 9%. You may be able to get financing but will pay a much higher interest rate as a result.<\/p>\n

I had one experience where I was trying to consolidate a few bills into one payment. My credit score wasn’t what it should have been and my interest would have moved from 11% toget ready for this24.99% per annum. That is an astronomical rate of interest and you will end up paying $25 per $100 of your annual ending balance. On a balance of $1000, that adds up to $250 a year!<\/p>\n

Personal health and well being The financial ramifications of having bad credit are bad enough, but there are other things to consider. If you have bead credit, you are probably already in debt. You may be getting mail from creditors or even harassing phone calls from collectors. This creates stress and strain on even the hardiest of people.<\/p>\n

You might have trouble sleeping, depression, loss of appetite or any of a number of other stress related symptoms. All of this because of some money troubles. While your finances are indeed important, so is your physical health.<\/p>\n

Conclusion In conclusion, having bad credit affects your financial opportunities in every area. From buying a home to borrowing for junior’s college expenses, you may have a lot of trouble with the money. Everybody wants to have nice things and bad credit will keep those things from coming your way.<\/p>\n

Bad credit can even take a toll on your health and cause you many problems. High blood pressure and even heart attacks are not unheard of; so be careful with your credit and take care of it – you’ll be glad you did.<\/p>\n

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About the Author:<\/div>\n
Steven J. Talrechi has been writing about credit reporting and credit reporting practices for 12 years. He is an expert in assiting others with second chance banking<\/a> and obtaining a checking account<\/a> when they have been turned down by banks.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Good credit – it means many different things. There are a number of advantages to having good credit; these are pretty obvious. While getting and maintaining good credit involves a high degree of fiscal discipline and making payments, it is well worth the effort. So how does bad credit affect you? What are the disadvantages of having bad credit? This is a question which it takes more than a few words to answer.<\/p>\n","protected":false},"author":1093,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-3705","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1093"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3705"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3705\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}