3 Life Goals Poor Credit Can Keep You From Accomplishing
A poor credit score can make borrowing money even more expensive than usual due to higher interest rates, or it can make getting a loan simply impossible. That much is obvious. But did you know that having a poor credit score can actually stop you from achieving some of your life goals? Here are three life goals that a low credit score might put into jeopardy:
3. Getting a job.
Wait a minute – what does a credit score have to do with employment? Actually, it is not unusual for companies to use your credit score in their hiring decisions as a proxy for your trustworthiness and reliability. Even though it’s legal, the practice does seem unfair, given that many unemployed rack up debt just to keep afloat, thereby damaging their credit score and, ironically, damaging their employability. A prospective employer does have to ask for your permission to run your credit, but declining is a quick way to lose your chance at the job. Instead, give them permission, but make sure to clearly explain the extenuating circumstances that led to your difficulties. Many employers will appreciate your honesty and look past your financial blemishes.
2. Renting an apartment.
If you have bad credit and accept that a mortgage is not in your immediate future, you might think renting is a sure bet in the meantime. Think again. Many landlords will run your credit to detect any history of delinquent payments or evictions. If they don’t like what they see, that shiny new apartment won’t be yours. Even if you do get that new place, utility companies may ask you to put down a deposit before turning on your lights if your credit is less than stellar.
1. Having a successful relationship.
No, a prospective partner won’t run your credit history, but financial incompatibility is a strong predictor for the success or failure of a relationship. Many boyfriends and girlfriends, worried about taking on your credit troubles, will want to know your status before committing to a long term relationship. Fair or unfair, a poor credit score may not bode well for a joint financial future. Worse still, credit issues carried into a marriage often lead to heightened tension and increase the chances of divorce.
If you want to accomplish any of these goals, bumping up your credit score should be your top priority. Contacting legitimate credit repair companies to help improve your credit rating is a great first step on the road to recovery.
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Category: Budget, Credit Repair, Credit Score
Great job here and so true! It really wasn’t until I started to adopt a responsible financial lifestyle and dispute the negative items on my credit report that I started to to see the light at the end of my financial tunnel. Thanks for the helpful insight!