Ways in Which Bad Credit Score Can Affect You

September 7th, 2021 by

Obtaining a bad credit score due to late payments can cause heavy repercussions to you that can make you feel financially insecure and cause you a lot of stress and anxiety in your life.

Don´t believe us?

Here is a list of some ways a bad credit score is to your detriment:

Getting Your Loan Application Approved

Lenders will check your credit score when you fill out an application form for a loan and when they see borrowers with poor credit scores, they will think they are a high risk. Meaning they’ll be less inclined to lend you the money you need.

Whether you’re looking for a mortgage to buy a home or a loan to finance a new car, you might find your loan applications being denied due to having a bad credit score.

High-Interest Rates

Even if you can get your application approved, it doesn’t mean that you are safe since you’ll most likely end up being stuck with a high-interest rate.

Since lenders see people with a poor credit score as risky business, they’ll make you pay for it by attaching your loan with a high-interest rate, which can make it a financial burden over time.

Getting Denied for Employment

Some jobs (especially those in upper management or the finance industry) can require you to have a good credit history. So, by having a bad credit history, you will have more difficulty acquiring your dream job.

They will believe you’re irresponsible in your financial life, and you might get eliminated from their pool of prospective candidates right away before even getting a chance to be interviewed.

High Insurance Costs

Insurance companies often help determine risk by looking at their credit. The theory is the lower a person’s credit score is, the more claims they will end up filing.

If you have a low credit score, the insurance company will most likely charge you higher insurance premiums.

Difficulty Purchasing a Vehicle

Banks check your credit before giving you access to their car loan options. Possessing bad credit can cause you to get denied a car loan altogether.

Even when you are approved, it can cause you to deal with higher interest rates, which will lead to a higher monthly payment.

House of Cars Lethbridge Is Here for You!

At House of Cars Lethbridge, we possess an extensive catalogue of quality used cars for sale. We have an experienced team of auto dealers in Lethbridge that will be able to help you acquire a suitable used car that best fits your needs.

Not only that, but we also offer plenty of loan options to you when you team up with us. We even have bad credit car loans available to those who have current financial difficulties.

We want you to drive away in a used car that best speaks to you and won’t break the bank. So if you live in Lethbridge and you need to acquire a used car or need help with credit rebuilding, we can walk you through all of your options to find the best fit for your situation.

Get in touch with us here to learn more.

Posted in Finance