A recent report in the Black Star News has highlighted how bad credit is ruining the personal lives of many people who are now facing a bleak future because of the state of their credit. Many people in countries around the world have seen their credit score plummet over recent years and for those that are still young and will need finance in the future, this spells really bad news.
While some people turn to credit repair services in the hope of sorting out their score, there are many that have credit that is so damaged it could take years to repair. For those that are affected their lives may be ruined in a number of different ways. Many people did not realize the importance of having good credit in the past but this has become obvious over recent years given the problems that those with damaged credit are facing.
How it is affecting their lives
People with damaged credit are seeing their lives adversely affected in many different ways and collectively this makes things look bleak for them in the future. Some younger people who still live with their parents have now got credit that is damaged. For these people, the prospect of being able to get a mortgage is very slim because lenders are now so strict when it comes to their criteria. Likewise, some younger people may be looking to take out a loan for a car, which could essentially help them to secure work. However, getting a car loan is also out of the questions for many of those who have bad credit. While some may be able to get a car on finance, this is likely to be much higher interest rates.
Over the years, many people have become reliant on credit cards or personal loans to make big purchases or for use in emergencies. Once again, for those with bad credit getting finance such as this can be difficult if not impossible. Many have only the option to go for loans designed for those with damaged credit and these can prove too costly. These loans and credit cards come with much higher rates of interest, which means that repayments are much higher and the overall amount for borrowing is also much higher.
It is not just the financial future that looks bleak for those with a low credit score. According to officials, this is something that can affect the ability of people to even rent a home let alone buy one. Some landlords will steadfastly refuse to accept tenants that do pass their credit scoring and this means that people who cannot get a mortgage because of their credit may also find that they cannot rent a property either. Even the jobs prospects of some of these people may be affected because for some jobs with responsibilities credit checks have to be carried out and a low credit score could make all the difference in terms of being able to get the job.
