Bad credits can create several negative repercussions. If you are in the habit of paying bills, then you should worry more than just added interest and late fees. Poor borrowing habits and not repaying the loans in time are going to affect your market reputation negatively.
A poor credit score can make it harder for you to qualify for loans and credit accounts. To overcome this situation, you need to build up your profile. Read on to know more about how a bad credit score can affect your reputation and what you can do to build up a positive profile.
Bad credit means trouble getting loans
It probably won’t come as a surprise for you if your lending company wants to know your credit score and how likely you are going to pay them. The credit organizations mainly go through your FICO and Vantage score to test your creditworthiness.
If you are thinking of purchasing your dream house by taking a loan, you need to score at least 620 on the FICO scale. If you have a low score of 500 you can get an FHA mortgage for which you will have to pay 10% of the down payment for additional mortgage insurance which can increase the overall purchasing cost.
Fewer renting options
Credit lenders are not the only ones you need to worry about with your spotty credit history. Your poor reputation in the credit market can haunt you when you are trying to make rent as well. Your landlords will also want to check your repayment history once before giving you the home keys. So, if you have made some borrowing blunders in your past, you should take bad credit help Surrey and give a boost to your credit score.
Higher insurance cost
You surely have not anticipated that your poor credit score can lead you to pay higher auto insurance premiums. Yes, this is what happens with the insurance carriers. A 2019 report at Zebra showed that individuals with poor credit scores pay more than twice their basic premium amount. You can amp up your score with interest-free payments in Vancouver to get a free tenure to repay your loans without paying interest.
Paying a deposit for the utilities
Your bad credit score will also create a hurdle when you try to set up your account with a utility. If you are having a low credit score, then you might have to pay an additional amount while setting up your account.
With a negative credit score, you can have a negative impression of the market. DebtconsolidationBc is there to support you in your credit management. If you are from Vancouver, Surrey, you can contact debtconsolidationBc and we can help you in amping up your credit score.