Sure, you know that good credit is important if you want to buy a house or a car, but you may not realize just how much of an impact bad credit can have on the rest of your life, the things you take for granted.
5 Times Bad Credit Costs You Money
If you have less than great credit, then simply getting through the day is costing you more money, and grief, than someone with good credit even if you aren’t aware of it. Here are five ways your pocketbook is hit due to having bad credit.
1.Car Insurance – It may not make a whole lot of sense, but all car insurance companies check your credit before they agree to provide you with car insurance. If your credit score is bad enough you may not be able to get car insurance at all.
For those that can, you can be assured that you will be paying more than those with good credit. In fact, you may be paying as much as 50 percent more.
It seems crazy but statically people with bad credit tend to have more accidents, and insurance companies pay attention to that. So, even if you’ve never had an accident or a ticket in your life, you’re paying for those who have. It’s not fair, but it’s just the way it is.
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2. Utilities – Most people with good or average credit don’t have to put deposits down when they sign up for utilities. Unfortunately, that’s not true for those with bad credit. Electric and gas companies, internet companies, and even water companies can and will charge you a deposit.
These deposits can be in the hundreds of dollars. For someone already on a tight budget, this can be a real issue especially if you’re moving and already have a bunch of moving expenses.
3. Renting an apartment – Speaking of moving, if you want to rent a new apartment or house, having bad credit can make that very difficult. Not all, but most apartment complexes and even smaller privately owned apartment owners run a credit check on prospective renters.
If your credit turns up bad, then chances are you won’t get the apartment even if you are willing to put down first, last, and a deposit.
4. Cell phones – Most anyone can get a cell phone, but if you have truly bad credit, you will have a difficult time getting a phone and service from the major carriers. Again, they may require a deposit and some will just reject you completely.
5. Getting a job – This last one bothers me the most, but many employers run a credit check on prospective employees. If they don’t like what they see, you won’t get the job no matter how qualified and perfect you are for it.
Personally, I don’t like what this implies. It’s seems to be saying that if you have had credit issues in the past then you are a bad person who won’t do a good job and may even be a thief. It’s really unfair as so many credit issues, such as health related expenses, are beyond someone’s control. Even so, having bad credit can keep you from getting the job you deserve and need.
If your credit isn’t what you’d like it to be, you can repair it. It takes time and effort, but it can be done. In doing so, you’ll save thousands of dollars over your lifetime and make life just a little bit easier.
For help improving your credit score, check out the additional resources box on this page.
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