With credit and credit institutions to use what is known as FICO scores to determine your eligibility for any financial request. Overall, the rate above 720 is considered excellent, and you get just about anything you ask. When you go over 650, it is uneven for most consumers.
These points are calculated and presented "big three" credit reporting agencies, which are TransUnion, Experian and Equifax.
Potential less than satisfactory FICO score will be difficult for you to obtain financing. May you have a very difficult to obtain mortgage, car loan or personal loan. With a bad credit history of prospective lenders that you are at high risk of credit or you will not be able to repay loans on time.
Interest rates, the biggest problem to have a bad credit history are obliged to pay higher interest rates.
Your FICO assessment will determine the interest rate you can get. If you can get a good score rate between 7% and 9%, if you have a bad credit history, you can still get financing in many cases - but at higher interest rates.
I personally was the situation last few years, when I was applying for debt consolidation loan. I had a credit score that is not what it should have been, and so I was offered a loan with an interest rate of 24.99! That is $ 25 per $ 100 dollars outstanding balance or an incredible $ 250 $ 1000 on my balance!
The staff of the health and welfare While the financial burden on your bad credit record contract rather difficult, it is also an account to be taken into account. If you have bad credit, high probability that you are in debt. Stress that can really take its victims, even the hardiest among us.
The results of this could be the loss of sleep, loss of appetite, depression, headaches, stomach problems and many other related stress disorders. All your money problems. Yes, your financial situation is important, but it is your physical well-being.
Conclusion with bad credit could make many parts of your life struggle. Buying a home, pay for college; everyone will be more difficult if you have any problems in obtaining financing. Everyone wants to have a good life for themselves, but a bad credit record could prevent us get what we want.
Bad credit can even take the loss of your health and cause you many problems. High blood pressure and even heart attacks, not known, so be careful with your credit record and take care of themselves - you'll be glad you did.