{"id":11171,"date":"2020-08-14T18:21:18","date_gmt":"2020-08-14T18:21:18","guid":{"rendered":"https:\/\/keepitrelax.com\/?p=11171"},"modified":"2021-09-20T18:51:49","modified_gmt":"2021-09-20T18:51:49","slug":"a-bad-credit-score-can-be-a-big-problem","status":"publish","type":"post","link":"https:\/\/keepitrelax.com\/a-bad-credit-score-can-be-a-big-problem\/","title":{"rendered":"A Bad Credit Score Can Be a Big Problem"},"content":{"rendered":"<div class=\"33e03f5b1890dbbd75839eda55edc2b3\" data-index=\"2\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block; text-align:center;\"\r\n     data-ad-layout=\"in-article\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-client=\"ca-pub-6841440657922430\"\r\n     data-ad-slot=\"4820913542\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n\n<p>Credit scores are often divided into five categories: Exceptional, Very Good, Good, Fair and Poor. Having a Fair or Poor credit score can be a huge obstacle whenever you\u2019re making big lifestyle changes. Read ahead to learn about the popular scenarios when a less-than-ideal credit score will come up and what you can do about it.\u00a0And you can also check <a href=\"http:\/\/www.irwin-insolvency.co.uk\/\">Irwin Insolvency<\/a> for more info. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Credit Scores Are Important<\/strong><\/h2>\n\n\n\n<p>A credit score lets banks, lenders and other authorities know how well a borrower has managed to handle their debt repayment. If they\u2019ve used a credit card for years without missing a single bill payment or maxing out the card, their score will likely be high. If they\u2019re always late with payments and pushing the balance to its very limits, the score will likely be low.&nbsp;<\/p>\n\n\n\n<p>Why is it important? The score lets these financial institutions determine whether you\u2019re a lending risk or not. A weak score indicates a higher lending risk. They\u2019re more likely to fall back on repayments or even declare bankruptcy in the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Side-Effects of a Bad Credit Score&nbsp;<\/strong><\/h2>\n\n\n\n<p>There are several side-effects that come with a bad credit score. Here is a handful of examples:&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Trouble with Loan Applications<\/h2>\n\n\n\n<p>People with poor credit scores have a harder time getting their loan applications approved by banks and other lenders. Whether they\u2019re applying for a credit card or a car loan, they\u2019re more likely to have their request rejected than someone with a Very Good or Exceptional score.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Higher Interest Rates&nbsp;<\/h2>\n\n\n\n<p>If a lender decides to approve a loan request from a client with a low credit score, they will likely modify the borrowing terms to match the lending risk. That means higher interest rates.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Difficulty Getting a Home<\/h2>\n\n\n\n<p>If you\u2019re thinking of buying a house, you should know that <a href=\"https:\/\/www.theglobeandmail.com\/investing\/personal-finance\/article-low-credit-score-how-to-appease-picky-mortgage-lenders\/\">mortgage lenders<\/a> often reject applicants with lower credit scores unless they have co-signers or collateral available to reduce their lending risk. Renting an apartment won\u2019t be a cakewalk, either. Landlords often run credit checks before approving a rental application. A low score could result in a higher security deposit or an outright rejection.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Do You Fix It?<\/strong><\/h2>\n\n\n\n<p>The good news is that a credit score isn\u2019t written in stone. You can bring those numbers up and get better opportunities from lenders. An effective way to <a href=\"https:\/\/davidsklar.com\/blog\/need-to-improve-your-credit-now-david-sklar-will-help-you\/\">protect your credit rating and credit score<\/a> \u2014 or to bring it into a higher category \u2014 is to sign up for credit counselling sessions with a licensed insolvency trustee. Credit counselling will give you the tools to responsibly use your available credit, manage your money and repay your debts. In time, you can become a low-risk borrower.&nbsp;<\/p>\n\n\n\n<p>Before getting professional help, you should <a href=\"https:\/\/www.moneysense.ca\/save\/debt\/how-to-improve-your-credit-score-2\/\">check your credit report<\/a> for any errors or suspicious information. A mistake could be lowering your score. Or worse, you could be a victim of <a href=\"https:\/\/www.readersdigest.ca\/home-garden\/money\/identity-theft-prevention\/\">identity theft<\/a> and credit fraud. If you spot something wrong, contact the credit bureau and\/or the related creditor about the problem.&nbsp;<\/p>\n\n\n\n<p>Depending on the numbers, a credit score can open up doors for you or close them. Don\u2019t lose out on opportunities because of a lower score. You have the power to bring those numbers up.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Credit scores are often divided into five categories: Exceptional, Very Good, Good, Fair and Poor. Having a Fair or Poor credit score can be a huge obstacle whenever you\u2019re making big lifestyle changes. Read ahead to learn about the popular scenarios when a less-than-ideal credit score will come up and what you can do about&hellip;<\/p>\n","protected":false},"author":4,"featured_media":11172,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57],"tags":[957],"_links":{"self":[{"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/posts\/11171"}],"collection":[{"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/comments?post=11171"}],"version-history":[{"count":2,"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/posts\/11171\/revisions"}],"predecessor-version":[{"id":11244,"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/posts\/11171\/revisions\/11244"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/media\/11172"}],"wp:attachment":[{"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/media?parent=11171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/categories?post=11171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/keepitrelax.com\/wp-json\/wp\/v2\/tags?post=11171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}