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Your credit score is something that really shouldn't be taken lightly. While having a high credit score will be very beneficial for you, the opposite can be said about having a low credit score. In fact, having a low credit score is like cancer, and only gets worse and worse unless you can take care of it before it takes over your life. Having a bad credit history has many dire effects that will change the course of your life.
The worse your credit history becomes, the more problems you can expect to find when looking for loans or banks to approve you of a credit card. If you ever find your dream home or dream car and need to take out a loan just to get it, if you have bad credit history, you can expect to not get much help buying the car. If you do, however, find a place willing to loan you money, it's highly likely that it will come with a high interest rate. Having high interest rates is hazardous to anyone with a low credit score, because if you end up missing a monthly payment, the costs are just going to amass over time and you will end up having to owe an amount that you'll surely be unlikely to pay off.
Another reason you wouldn't want low credit is because if you have low credit, you won't be able to use the benefits of having a credit card to its fullest. For instance, you won't be able to have the rewards that they only offer to people with higher credit scores, such as cash back or travel miles.
There is almost nothing you can do independently when you have a poor credit score. Even utilities and apartment landlords inspect your credit before they give you their services. For instance, apartment landlords will run your name through a credit check before they decide whether or not to allow you to live there. And if you somehow miraculously get approved by the landlord, the utility companies will check your credit score and have you pay a security deposit based on your credit information. With a bad credit score, you can expect not being able to stay in one place for too long, and having to move through various homes and paying utility deposits over and over. You also won't be able to start your own business due to the fact that you will have such high insurance premiums and won't be able to take out business loans.
Basically, there are no benefits of having a below average credit score, so you should avoid it at all costs. If you're on the road to having bad credit, then you need to take care of it right away before it gets out of hand.
The worse your credit history becomes, the more problems you can expect to find when looking for loans or banks to approve you of a credit card. If you ever find your dream home or dream car and need to take out a loan just to get it, if you have bad credit history, you can expect to not get much help buying the car. If you do, however, find a place willing to loan you money, it's highly likely that it will come with a high interest rate. Having high interest rates is hazardous to anyone with a low credit score, because if you end up missing a monthly payment, the costs are just going to amass over time and you will end up having to owe an amount that you'll surely be unlikely to pay off.
Another reason you wouldn't want low credit is because if you have low credit, you won't be able to use the benefits of having a credit card to its fullest. For instance, you won't be able to have the rewards that they only offer to people with higher credit scores, such as cash back or travel miles.
There is almost nothing you can do independently when you have a poor credit score. Even utilities and apartment landlords inspect your credit before they give you their services. For instance, apartment landlords will run your name through a credit check before they decide whether or not to allow you to live there. And if you somehow miraculously get approved by the landlord, the utility companies will check your credit score and have you pay a security deposit based on your credit information. With a bad credit score, you can expect not being able to stay in one place for too long, and having to move through various homes and paying utility deposits over and over. You also won't be able to start your own business due to the fact that you will have such high insurance premiums and won't be able to take out business loans.
Basically, there are no benefits of having a below average credit score, so you should avoid it at all costs. If you're on the road to having bad credit, then you need to take care of it right away before it gets out of hand.
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