5 Unusual Ways an Adverse Credit History or Score Hurt You

5 Unusual Ways an Adverse Credit History or Score Hurt You

March 15, 2020
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5 Unusual Ways an Adverse Credit History or Score Hurt You

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Having an adverse credit history can do more than make it harder to qualify for credit. Learn about 5 unusual ways an adverse credit history or score can hurt you.

As soon as you apply for your first credit card, you're beginning one of the most important and dangerous journeys of your life, building your credit.

If you've stumbled along the way, you probably already know that adverse credit history can royally mess up your life in a myriad of ways.

While it's common knowledge that a bad credit score can affect your ability to buy a property or take out loans, there's plenty of other less well-known challenges that come along with a low credit score.

Today, we'll talk about 5 of the most unexpected pitfalls that come along with adverse credit history.

1. Job Hunting? Low Credit Can Get in the Way

Whether you're looking for work as a nanny or as a bank teller, background checks are par for the course. While most employers will just confirm your identity and make sure you're not a criminal, some will also look into your credit history.

The positions where your credit score will most likely come into play are either in the financial sector or include other fiduciary duties.

2. Landlords, Leases and You

While we all know that poor credit score can make it difficult to become a homeowner, it can also complicate navigating the rental market.

Most landlords will ask for a credit check when you apply for a lease. They'll be looking into things like your history with loans, payments, and any outstanding debt you've accrued.

If a landlord thinks you won't be a financially reliable tenant, they're more likely to refuse your rental application. In some cases, they may require a guarantor to co-sign the lease for your application to be accepted.

3. Love in the Time of Adverse Credit History

If you Google "the most common things couples fight about," then you'll find two things that top every list: sex and money.

Part of being in a serious relationship is making plans for your shared future, and a bad credit score can make those plans less than dreamy. Shared finances bring up a whole new world of possible romantic friction.

4. Bills, Bills, Bills

No one likes to hear the words "telephone bill" (even if Beyoncé sings them) if they have bad credit. Your health insurance, cell phone bills, and even car insurance payments can be affected by your credit.

If you have a low credit score, expect to see your insurance premiums go up. Your options for phone and internet plans will also be limited.

5. Finances and Self Worth

Maybe most importantly, having a low credit score can impact your confidence. In a 2011 article published by Nasdaq, psychologist Dr. Ramani Durvasula pointed out that a bad credit score can negatively impact various areas of our lives.

So, put away that ice cream and turn off the rom-com because fiscal responsibility is the new self-care trend we should all be following.

Credit card debt can seem insurmountable, but there are ways to deal with it, and you can do it.

Credit Isn't Everything, But It's Important

If you're struggling with an adverse credit history, don't stress too hard.

We all make mistakes, and if you put your mind to it, you'll be able to get back on solid ground in no time.

If you want to learn how to pay off credit card debt, check out our blog post to find out more.