A bad credit
rating happens to people who often neglect to pay their credit card debt on
time, or for those who don’t pay their credit card debt at all.
This results to a
bad credit rating. This bad rating has tremendous effects on people. a lot of
businesses today asses people based on their credit rating.
The Effects of Bad Credit Rating
Buying a House
If you have a
good credit rating, the interest rate that will be given to you will be lower.
High interest rate is given to those who have bad credit ratings.
Buying a Car
People with bad
credit ratings may find it difficult to secure a financing loan. High interest
rates are also expected when you will get a loan grant.
Getting an
Apartment
Landlords, too,
check credit ratings. It can be difficult to land on an apartment for those
with bad credit ratings.
Jobs and
Promotions
Employers also
check your credit rating. You might not land on a job. If you’re already
working, you might not get that promotion when your employer finds out about
your bad credit rating. This is most lethal when you’re in the field of
finance.
Insurance
Insurance
companies know that bad credit ratings are associated with higher claims. This
makes insurance companies charge higher premiums to those who have bad credit
ratings in their records.
ABOUT
Deborah Koval is
a financial professional and a finance blogger who aims to reach out to people
and help them with almost anything related to finance and good finance
handling. She writes and reaches out to people about topics like funding the
children’s college education, establishing wealth through investing, securing
the family estate, and even making plans for a more comfortable retirement in
the future.
She helps people
get on track with their financial goals and make smart choices at the same time
to make their goals reachable in a realistic period of time.
In completing a
financial strategy, she follows a certain process to help you reach your goals:
- Gathers and analyzes your current financial situation to get a clear image of your needs, liabilities, assets, and risk tolerance.
- Designs a financial strategy considering all your needs in the present and in the future.
- Reviews sand assesses strategy and make necessary adjustments
- Assists you on staying on track with the plan.
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