If you are in the habit of running up debts without giving them a second thought, you may want to take the time to think about your actions. Although bad credit may not visibly affect you right now, there are many areas of your life which can be affected by irresponsible spending and accruing debt. Discover how bad credit can have an impact on several different areas of your life and discover how you can avoid allowing this to happen.
Your job
Perhaps you have been at the same place of employment for some time, or maybe you have been out of work for a lengthy period and are only now just looking to return to the workplace? Whatever your employment status, there may come a time when you need to search for a new job, and this is where bad credit can rear its ugly head and stop you getting that much-needed job. It is commonplace for a credit check to be carried out as part of the recruitment process. Even if you have provisionally been offered the role, a credit check can be the difference between stepping right into a new job and being told that your services are no longer required. Should you be worried about your bad credit, you can always be upfront with your potential employer by taking in a copy of your credit report and explaining each record and how you intend to get yourself out of debt in a responsible way. Honesty is a valued trait and can go some way to convincing that your bad credit is not a reflection of your attitude to responsibility at work. It may be a little trickier if your role is directly related to a financial post or is at a bank because employing someone with bad credit could reflect badly on the company.
Your leisure time
Credit cards are ubiquitous, and almost every contemporary transaction requires you to have one. If you have bad credit, you are unlikely to be able to acquire the usual type of credit card, and this can prevent you from staying at hotels, hiring a car, and even from carrying out online transactions. Avoid being out of the modern-day loop by applying for a credit card for people with bad credit. These not only help you with everyday transactions but can also help you build your credit. Many bad credit credit cards require a deposit, but if you are strapped for cash, there are options out there for you; read this article to find out more.
Renting a place to live
This is one of the main areas in which having bad credit can truly impact on your life. If you find yourself in desperate need of somewhere to live, having bad credit will deplete your chances considerably. However, there are steps you can take to increase your chances of renting a place while having bad credit. Although it should be taken as a given that all landlords will carry out a credit check, some don’t and therefore, if they don’t mention it, be sure you don’t either! However, if a credit check is imminent, you can try to be honest with the landlord and go through your credit record, explaining what each negative is for and how you are taking steps to resolve your current credit problems. Next, ensure you have appropriate references from employers and from respected members of the community, or friends that are in respected jobs such as officers of the law or members of the clergy. Reassurance in the form of references can be enough to convince a potential landlord that your credit report is not a complete reflection of your character.
Buying a car
A car can be considered an essential item, especially if you have a family that depends on being taken to school and extra-curricular activities. If you have bad credit and your current car breaks down, it is unlikely you will be able to purchase a new one on credit. You will need to purchase a car with cash, so look to buy second-hand and within your limited budget. However, if you are in need of a larger car to accommodate your family, you may find that a credit union will be willing to lend you the money to make the purchase. Alternatively, you can, as suggested above, look at applying for a credit card designed specifically for people with bad credit.
Take action
Make a personal pledge today to do all you can to repay debts and to better your credit. Contact your creditors to discuss your debts and discover if you can pay a lump sum repayment with the rest of your debt written off. Should you find your financial situation too much to handle, you can contact a debt counselor who can help contact creditors and devise a repayment plan to suit your budget. Being constantly worried about debt can be incredibly stressful and knowing you can rely on financial experts to help you with your debt will certainly help to alleviate that stress.
Do It Yourself
Taking things into your own hands can give you back a sense of control, and you can do this by devising your own budgeting and repayment plan. There are several apps and websites with free software to help you compile your household’s budget, or you can make your own by placing your salary and expenditure into a spreadsheet.
Bad credit doesn’t make you a bad person!
Having bad credit should always be avoided, but if you already have bad credit, all is not lost. There are many ways to better your credit report including always paying current bills on time and making acceptable payments to all your creditors. Having bad credit is not as rare as you may think, and employers and landlords can be understanding if you are honest with them from the outset. It is important to be proactive when trying to improve your credit report and ignoring bills, and any other debts is not a sensible course of action.
