Friday, May 23, 2014

What a Bad Credit Rating Can Do To You

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 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.


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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