Is Bad Credit Making Your Life Hard?
Bad credit can affect your life in more ways than you think. Credit scores have become more important than ever, and an increasing number of people with bad credit are feeling the pinch. Having bad credit can affect your ability to buy a home, affect insurance premiums and utility rates, and even lower your chances at landing a job. Knowing your credit is the first step to taking control of your financial future. But in case you didn’t know, here are a few ways that bad credit can affect your life.
Buying a Home
If your credit is really bad, it might be tough to buy a home. But mortgage lenders have become more lenient if applicants can prove a year of on-time rent payments. Plus Federal Housing Administration (FHA) loans can be an option for some homebuyers with scores as low as 580, assuming you have 3.5% of the down payment required. Still even if you can get a loan, the interest rate can be higher than someone with good credit.
Higher Insurance Premiums
People with poor credit also pay higher insurance premiums. Insurance carriers in most states look at credit ratings to come up with an insurance rate. The National Association of Insurance Commissioners (NAIC) explains that bad credit is seen as an indicator that an individual won’t pay, so they hedge their bets by charging more.
Setting up Utilities
Most people don’t know that a bad credit score can make you pay higher utility rates. If your score is bad, the utility company may ask for a deposit or a guarantee to help pay the bills if you cannot.
Getting a Job
Some potential employers may request an employment credit report that omits your personal data but displays your payment history. If you are applying for a job within certain industries like the financial industry, this could affect your future employer’s view of you.
Bad credit is a real problem for many Americans and American businesses. If you want to grow your business, but have a bad credit score, it will be difficult for you to gain a merchant account with a traditional payment processor. Contact the High Risk Guys to reach your financial goals and start your bad credit merchant account today.