A poor credit score will cost you a lot of potential benefits in life

A poor credit score is probably one of the worst financial disasters anyone can go through. It not only makes your financial status poor but also affects your lifestyle and your emotional being. It all starts like a game when you skip paying some bill but before you know it, your credit cards are maxed out and the nightmare begins. Here are some of the ways a poor credit score can damage your life.

1. Limited borrowing options

With a poor credit score, nobody wants to be associated with you financially. This makes almost all lenders to fear lending you any money. Every time your credit score pops up, a red flag flies alongside it. All this is because a poor credit score is associated with poor financial decisions. Subsequently, no one would be willing to trust you with his/her money. Even though some may be willing to lend you, the interest rates are super high. It is just too expensive to borrow and add more debt on yourself.

credit score

2. You can’t even buy a car

When you go to buy a car, they always check your credit score. When the credit score is poor, you might be denied the car loan to get you a car. Even when the lender approves the loan, your interest rates will be higher than normal. If you don’t boost your credit score, this nightmare continues.

3. It might even affect your love life

At this age, no one wants to date or marry anyone who is not financially stable. There are dating sites today that use credits scores when making your profile. The higher your credit score, the better your chances of meeting someone serious. Many women also consider money management skills while searching for a partner. This implies that a poor credit can ruin your chances of settling down.

4. Difficulty getting a job

Before you are hired, your prospective employers might ask for your credit score. When applying for a high position in a company, your credit score must be impeccable. When you have a poor credit, employers tend to think that you cannot manage money well. Nobody will be willing to hire you because he/she cannot trust that you will manage his or her money when you cannot manage your own. When you cannot land a job, you risk sinking deeper into debt because you have no source of income but you are still spending money.

5. Hard to get a mortgage

Even getting a mortgage requires you to have a good credit score. When you go to apply for one, they must check your credit history to know how you manage your funds. With a poor score, you may find it difficult to get a mortgage. If you manage to get one, the interest rates are higher than usual. The owners fear that you may never pay them if you are declared bankrupt.

6. High insurance premiums

Even insurance companies won’t trust you if your credit score is poor. They see you as a ticking bomb waiting to explode and give high claims. Therefore, they increase your premiums. This makes your life even harder.

7. It damages your name and reputation

Once you go deep into debt, everyone will know. This can ruin your reputation among friends and family. You become known as the person with poor financial decisions.

8. Finally, it affects your health

After getting rejection after rejection from people and companies, your health might deteriorate drastically. Many people fall into depression because of this. High stress levels might cause headaches and sleepless nights. Your mental well-being is at risk at this point.

A poor credit score is a place you don’t want to go. Every time you get a chance to repay your debts on time, do it. Pay your bills as soon as you can. The last thing you want is to be maxed out on your credit cards.

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