superblog!
opinions, life and more..
|
Bad credit hurts more than you think July 08 August 08 September 08 October 08 
RSS 2.0    Share!
|
|
|
Everybody knows that a low credit score costs you more on a loan or a credit card in terms of interest repayments, but very few actually take notice of the other insidious effects a credit rating has on our lives. In a sense, credit ratings have become a new form of class filtering and those with bad credit ratings are placed right at the bottom, below are some of the areas where for them a bad credit rating means a higher premium:
Insurance
Insurers believe that if you have a good credit rating, then you must be carefully, likewise, if you have a bad credit rating, you’re risky and more likely claim, therefore you don’t get offered the cheapest premiums available.
Car loans
As with other loans, the higher the risk you’re, the more interest you’re likely to get charged when you apply for a car loan.
Renting
Some landlords are wary of potential renters who happen to have bad credit ratings, some will ask for a higher deposit or reject the renter altogether.
Utility bills
Gas and electricity suppliers also band their customers, those that can’t pay by direct debit often end up paying more.
Thankfully, a bad credit rating is not something you can be stuck with for life, things like credit cards for bad credit can be used to improve one's credit rating, the most effective way to increase that score, however, is paying down your debts as much as possible.
1
|
