How can Bad Credit Mess Up

Our Life?

As the name points out bad credit is always bad for us. It is something we don't want to be linked with our finances. Unfortunately, we may have less than stellar credit at some point of our life. Credit scores show a person's credit worthiness. Banks thinks credit scores as a good indicator for an individual's future financial behavior. The harmful consequences of bad credits are undeniable.

The following things can get costly or are unachievable if you have bad credit.

Car Insurance

Mortgage Loans

Credit Cards

Car Loans

Cell phone Plans

Job Hunting

Car Insurance

Insurance firms check your credit score when arriving at a rate. Like banks, they presume your credit score, which will show how unsafe of an investment you are. This means that you may have higher than standard rates for years or that you may not be accepted for insurance coverage at all by a certain firm, depending on how low your credit score is.

Mortgage Loans

Every time you apply for a loan for purchasing a house, you can be sure that financial institutions look at your credit score during this. Bad credit means probably being denied a loan or higher interest rates. The interest you pay is based on your level of risk and the existing market rate. The poorer your credit is, the higher your level of risk is and the higher your interest rates will be.

Credit Cards

If you are granted for a credit card, you can expect on having higher than average interest rates. Credit card interest rates vary anywhere from 7 percent to 36 percent. With a good credit score you can anticipate to fall anywhere between 10 percent and 19 percent. With a bad credit score, you can expect to be somewhere around 22 percent and above.

Car Loans

When you apply for a car loan, banks will definitely check your credit score before approving your loan. Interest rates on your loan will sway with the results. Poor credit score means high interest rates. But there are firms which offer car loans with affordable interest to people with bad credit.

Cell Phone Plans

Are you aware that some cell phone provider firms, like car insurance firms, check your credit score? They actually do that. According to your credit score they can either accept or reject you.

Job Hunting

Under some law, a future employer may have the right to review your credit report with your written approval. HR managers can use these details when making their decision. But this law is not applicable everywhere.

Like this a bad credit can affect you really bad in many situations. Always be alert about your credit score. Do not spend money, which you can't repay. Maintain a decent credit history.

Addison Credit offers car loans for people with bad or poor credit. Addison Credit offers financing choices and toil with you to choose the best plan for you. Addison credit has served the communities of Toronto, Mississauga and Oakville for more than 57 years. Addison Credit helps customers to find success in attaining the bad credit car loan they need.

http://www.addisoncredit.ca