Many people take a pretty casual attitude about bad credit, but having a poor credit score can hurt you in many ways. A bad credit score shows that businesses and lenders find you to be a poor credit risk because you have made some mistakes in the past. Bad credit can affect many things in your life. If you want to apply for a personal loan or a refinance loan, you may be charged extra interest rates or be offered worse terms if you don’t have a strong credit history. You may have a hard time securing any loans – even bad credit personal loans – if your credit score is low enough. This means that you may not have access to cash loans when you need them or that you pay more than you have to for personal loans.
Even if you do not need a personal loan, bad credit can still harm you. Landlords sometimes look at credit scores when screening tenants. If you want to rent a great apartment, especially in a competitive rental market, you may have a hard time renting with a bad credit score. Employers also sometimes check credit scores when hiring new employees, especially if those employees will be working with money or financial information. Having a poor credit score, therefore, can cost you that great career.