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Is Your Credit Killing Your Future?

July 18, 2018 by Susan Paige

It can be very difficult to get or maintain good credit. There are so many factors that go into your credit score. The age of your credit, the type of credit you use, and your payment history are all big factors that make up your credit score. Many people only worry about their credit when they are wanting to buy a home or new vehicle. There are many ways that your credit score can affect your life.

Job

Can you be rejected for a job because of your credit? Yes, you can. Many employers will want to do a background check and a credit check. Your credit file is another way to gauge your history and risk level. For instance, if you take out many loans or credit and do not pay them back, this shows irresponsibility. That can be a huge problem in many jobs. If you can’t get a job because of poor credit, this will make it much harder to get the things you want in life like a home, vehicle, or a vacation.

Insurance

Your credit impacts your insurance rate. When you apply for insurance for your home and auto, they will do a credit check. Your file will help them decide how much of a risk that you are to them. Insurance companies evaluate you and decide what risk category you are to calculate the rate you will pay. The higher the risk, the more you will have to pay for the same coverage that someone with good credit will pay.

Medical

Medical bills can happen without warning. They can be very expensive. If you get bills that you cannot pay in one lump sum, you will need to make payments. Many healthcare facilities will allow you to make payments. If they dont, you will need a way to pay them. You may need a loan to cover those bills. If your credit score is low, it could be hard to get a loan. If your medical bills go to collections this will really damage your score. As you can see, bad credit can cause worse credit.

Home

Owning a home may not be a top priority for you. You may even think that you can’t afford to own one. Many times owning a home can be cheaper than renting. Rental prices are soaring while home prices have leveled. If you have poor credit, you will be forced to continue paying inflated rent. If your credit is high enough, you can pay less while owning a home. With good credit you can qualify for USDA Loans, which don’t even require a down payment.

As you can see, credit is a huge factor in your life. It can keep your from getting a job or will cause you to pay extra for the same thing you would if you had better credit. If your credit isn’t great, find ways to improve it. Start with a budget and your credit report to see where you can improve.

 

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