Everyone has experienced bad credit at least once, or at some point in their life. I certainly have. I feel that America wouldn’t be in as much debt as we are, had we been taught early on in life… even as toddlers!
You know how they have the little cash register toys out for little kids? It comes with fake paper money, and plastic coins. They should have added a couple of credit cards to that particular toy with an instruction manual about the dos and don’ts of credit! They may not understand it then, but when they get older, that manual will be there for the parents to educate them as they grow.
The same applies for high school. If credit is going to be taught at any point in life, I feel that high school is the best time. In high school, they have various classes that teach life skills, outside of math, English, and social studies. Schools taught various vocational classes such as wood shop class, home economics, and auto shop class. If students can learn all about those skills, why not have a Credit 101 class. I truly feel had credit been taught in high school, there wouldn’t be so many people in debt, and stuck with bad credit.
Having bad credit sounds bad as it is, but have you stopped and thought about the consequences associated with bad credit? The consequences of bad credit can certainly put a level of difficulty on major purchases you want to pursue, which is unfortunate because it seems like you have to have good credit for just about anything you do! Before you go spiraling down the path to bad credit, consider the consequences of it before you dig yourself into debt.
Higher Interest Rates
Now, just because you have bad credit, that doesn’t mean you are shun from the world of credit. You still have the ability to apply and get approved for credit cards with bad credit, it just comes with higher interest rates. It’s really not a bad deal if you think about it. You have bad credit, so a lot of companies would deny you because of that. The fact that there are companies out there willing to give you access to additional funds is great!
Credit cards for bad credit are actually a great way to boost your credit score too. A great rule of thumb to have with credit cards, is to spend low, so that you will be able to pay that balance in full by your bill’s due date, and even before the due date. If you spend too much and are only able to make the minimum payment, that’s when that higher interest rate is going to kick in and be added to your credit card’s remaining balance. So if at all possible, try to quickly pay back what you spend, in full, to avoid those interest rates.
Denial For Loans
Another pitfall of bad credit is denial of loans. Emergencies and accidents happen to where additional funds may be needed. One of the worst things that can happen is to need extra money, and not have any options available to you.
Luckily there are loan companies out there that understand that life happens sometimes, and will still be there for your financial needs in spite of bad credit. We’ve all had something unexpected happen before and needed extra funds. Me personally, I had car troubles. It just seems like your car always wants to break down, or have something go wrong with it at the wrong times (is there ever really a good time for car troubles?). I had asked family members for help, and they either didn’t have the funds to lend me, or just simply didn’t want to.
At that point, I felt that all hope was lost and I just was going to have to go without my car until the next pay period, and run the risk of losing my job, but I discovered that there were loans out there specifically for people with bad credit! I ended up getting that loan, got my car fixed, and was able to turn my stress levels all the way down.
Denied Employment
This may sound a little odd, but yes, you can be turned down from a job if you have bad credit. It mostly sounds odd because normally, jobs mainly do background checks, and everyone knows that depending on what’s on someone’s background check, will determine whether or not they get hired, especially depending on what field they’re applying for.
If someone is applying for any type of nursing position, and abuse or drug possession charges show up on their report, they more than likely will not get hired. The same goes for credit checks. If you’re applying for a job in finance, and your credit is bad, that company could deny your employment based off of that. It appears to them that you’re a potential financial risk with money. For all they know, you could hit hard times, and get desperate enough to embezzle company money to pay for your personal affairs. So for that reason alone, it’s very important to check your credit report regularly.
Limited Financial Options
With bad credit, your financial options are definitely limited, but not obsolete. You aren’t able to get loans or credit cards of high amounts or limits, but at least you have options. A lot of people with bad credit tend to go towards the payday loan companies, fearing that bad credit loans aren’t safe. I personally haven’t had any good experiences with payday loans. It just seems as though I dug myself deeper into debt. It was just so hard to get out of that cycle.
Loans and credit cards for those with bad credit are the best, in my opinion, because they get you the extra money you need, plus they help you to build your credit (as an added perk!). Payday loans don’t do that. Although your options are limited, you still have good options. Consider the loans and credit cards for bad credit for your financial needs.