Having Bad Credit Ruins Your Life. It can be depressing and depressing is something everyone fears. But for those of you with bad credit, you can take some steps to improve your finances in ways that are going to help you live a happier life. Here are the most common effects Bad Credit Ruins Your Life and how you can take steps to change them and have happier times in your life.
1. Your Credit Score Will Make You Relentless, Calculating, and Stressful
When you have bad credit ruins, it can be tough to pay your bills on time. This can have an emotional effect, making you more easily annoyed or frustrated. You might even get anxious and miserable at the thought of making a payment. These emotional responses are why your debt is a big factor in your credit score. When you have bad credit, you are more likely to feel the need to play the game in order to get what you want or to get what you need.
While this seems like it might be okay for paying a few more of your bills on time, it can quickly become an obsessive, compulsive habit. This type of behavior is known as a “gaming disorder.” Those with this disorder get pleasure from manipulating their debt, getting the maximum credit available, and playing the game of credit cards. Some people do not realize the potential ramifications of their bad habits. As a result, they can end up severely ruining their credit score and hurting their finances.
Bad Credit Ruins Your Life – When you have bad credit, you are subject to the following gambles:
- When you pay your monthly bill, you are gambling on that bill’s ability to get paid on time.
- If you owe the Department of Motor Vehicles a couple of hundred bucks, it is a gamble on your ability to pay that bill.
- So, each time you run an online check-up, you are putting your payment on a somewhat blind faith that the lender will find no problems with your credit or information.
- Each time you miss a payment, you are gambling on the fact that you will be able to make a payment before the next statement comes out.
- Each time you pay a security deposit, you are betting that you will actually get that deposit back and not lose it.
In a very real way, bad credit is gambling addiction.
2. You Will Keep Your Promises, But It Is More Difficult to Keep Your Promises to Others
When you have bad credit, you are not as likely to keep your word or fulfill your commitments to others. You will make a promise to someone, but you will be less likely to fulfill that promise because you are less confident that you will be able to keep it. When you have bad credit, you may have more difficulty keeping your word because you will be more likely to second-guess your decision to make the commitment.
3. You Will Spend More Time Avoiding Potential Transactions and This Can Ruin Your Time and Money
Do you have a great credit score? It will not last long if you ignore the signs of when to avoid making a transaction that may impact your credit score. Bad credit makes it a little easier to pass up an opportunity to make a purchase or get a loan. But what happens when you have a monthly subscription that you do not want to miss? You may find yourself scouring the internet or looking for more and more ways to avoid it, all the while costing you money.
4. You Will Be Less Focused on Creating a Healthful Financial Environment
With bad credit, you will not have the same level of self-control when it comes to spending money that you do with good credit. When you have good credit, you will have more confidence when it comes to buying the latest gadgets, but this is not true for bad credit. You will be more likely to give in to temptation and impulse purchases. This might have less of an impact on your day-to-day life, but it could have a major impact on your finances in the long term.
5. You Will Have a Hard Time Getting Settled in Your Current Location
If you are planning to settle down and get a house or something similar, getting the perfect credit score can be a huge factor in helping you do that. Even if you are planning to rent, getting a credit score that allows you to rent a safe and clean place could be a game-changer. If you are a struggling single parent, a good credit score can help you find a stable place to stay, knowing that your credit score will not impact the chances that you will be approved.
6. It Can Make It Hard to Move from a Job to Another
If you have bad credit, you may find that you cannot leave a job because you would lose your current one. If your business is tied to your credit, this can be a huge deal. Many companies would prefer to keep you as a customer rather than hire someone else, and even if they let you go, your credit score could hold you back from finding another job.
7. You May Lose Jobs or Get Fired When There Is a Spot Check or an HFA (the Banking Fraud Investigative Report)
Some companies that you might have worked for, or a manager you might have had in the past, will want to do a background check. If the person conducting the background check does not like your credit history or the negative nature of your finances, you might find yourself without a job.
8. You May Not Be Able to Rent or Get a Mortgage for a Very Long
If your credit history is bad, you may have a hard time getting approved for a mortgage or a rental. Getting approved for a mortgage is not a skill that is something you can learn overnight, so having bad credit makes it harder to get a good mortgage or apartment.
9. You Might Have Fewer Job Opportunities
If you have a bad credit score, it can be hard to get a job. You might be turned down for a loan or apartment, and your application could be rejected. To get a job, you need to be able to show your work history and your credentials. Having bad credit can make this harder, as employers will not have as much confidence in your abilities.
10. You May Not Be Able to Move to an Area with Better Jobs
If you have bad credit, you might not have as many options as you would with a good credit score. If you want a job in a high-paying area with lots of opportunities, it might not be a great idea to have a bad credit score. Your credit score is just one factor that will help determine your opportunities, so it is important that you pay attention to these things. It is often not just the score that affects your chances, but the actions you take as well. It can make your life much easier to improve your credit score.
11. You Will Often Overindulge with Your Friends and Family
When you have bad credit, you are likely to be a lot more generous with your money with friends and family. Because you are more likely to fear making a commitment or you feel that there is a risk that the people you love may back out, you are likely to go over the top. When you have bad credit, you are more likely to go to your friends and family asking for help when you are financially strapped. Because you are more comfortable asking for help with your money than you are with your spending habits, you are more likely to overindulge.
12. You Will Be More Than 10% More At Risk for Getting Kicked Out of Your Listed Home
According to the online legal advice website Nolo.com, with the exception of some very specific circumstances, you will be much more likely to get kicked out of your home or apartment if you are carrying debt with a 10% interest rate or higher. In that situation, you would be more likely to get kicked out by the lenders or the landlords because you have 10% of your property on your back. It is like carrying 10% more weight than you should. This is why it is important to have an idea of the interest rate you are paying on your debts. You may be paying a 10% interest rate on your credit card, but you will be paying much higher than that rate on your mortgage.
13. You May Be Impeded from Becoming a Homeowner
Many people dream of being able to own a home. When you have bad credit, you may have been more likely to be denied a mortgage or be taken to the bankruptcy court because of your debt. This is why it is important to pay attention to the credit score and keep an eye on the loan payment histories of the lenders you work with.
14. You May Be Less Likely to Be Supported by Family and Friends
Family and friends may be more likely to bail on you or support you less when you are less likely to be able to pay them back. This is why it is important to pay attention to the way that you deal with debt.
15. You May Be More Likely to be Denied Special or “Good Credit” Credit Sources
If you have bad credit, you are more likely to be denied credit for a number of reasons. If you have bad credit, it will make it more difficult to apply for a home, car, or even a credit card. When you are denied credit, it may be because you have poor credit or you don’t have the financial history that they are looking for.
16. You May Not be Able to Get Promotional Rewards or Cash Back Rewards for Your Credit Card Use
If you are using a credit card to buy things for which you receive cashback rewards or promotional rewards, it is possible that you may have a high-interest rate on your credit card, which would make it more difficult to make the minimum payments on your credit card. If you have bad credit, it may be difficult for you to get these kinds of rewards because you may be a risk to the lenders that are offering them.
17. You Are More Likely to Be Hired and Be Mistreated if You Have Bad Credit
If you have bad credit, you are likely to get a lot less work or to be denied work. This means that you may be less likely to get the right jobs that could improve your financial situation and that may keep you from having the resources to get out of debt. This is why it is important to take steps to fix your credit.
18. You Will Be Less Likely to Get Student Loans
According to Rummy Fin Games, “If your credit has a bad rating, chances are you will be rejected from student loans. Your student loans are an important way to improve your finances. So, it is definitely not a good idea to have bad credit.”
19. You Will Be Required to Pay More Per Month for Many Medical Bills
If you have bad credit, you may have to pay more out of your own pocket for medical bills. This means that if you have multiple medical bills, you may have to pay more out of pocket for the entire bill. This can cause you a lot of unnecessary stress.
The bottom line is that bad credit can put a lot of extra stress on your finances. There are steps you can take to fix your credit if you have problems, but they may not be enough. It is possible to get your credit score improve and get out of debt, but you may need help with your finances to make those changes.