How Your Debt Can Affect You
May 3, 2008 · Print This Article
Are you one of the many people who believe that getting behind on your credit card payments is just a minor inconvenience, and not really all that important? Do you think that being in debt to your local department store and conveniently forgetting to pay the bill for a couple of months won’t matter, as you have no plans to buy anything more from them? You are more than likely in for a rude awakening. Owing money to one or more creditors can impact your life in ways you are probably not aware of.
It has become very common for employers to routinely check the credit history of a potential employee before making the decision whether or not to hire that person. Someone could be right for the job in every way, and may have even passed any pre-employment tests with flying colors, but if they have bad credit, the job will go to someone else who may not be as qualified, but has an impeccable credit rating.
The companies who do this claim that it is necessary to enable them to determine if a potential employee who may handle money or other valuables as part of the job can be trusted not to steal. They also feel that someone who has not handled themselves in a responsible fashion when it comes to using credit and paying their bills on time would not be responsible with any sort of job requirements.
It would be embarrassing to be turned down for a job you were qualified for and were sure you had been chosen for because of your poor credit. Even if you had a pretty good reason for having those “black marks” on your credit record, such as large medical bills and no hospital insurance, it makes no difference to employers. If you have a lousy credit record, you are going to have trouble getting a good job, no matter what your credentials.
Similar to what employers do to job applicants, landlords also have begun to check the credit records of their prospective tenants. They reason that anyone with poor credit may not pay their rent on time, if at all, and are very hesitant about renting to anyone with a tarnished credit record. This hardly seems fair, as even people with poor credit – or no credit at all – need a place to live! You may be able to get past this requirement by having a co-signer, but even that is no guarantee.
Now you have proof that being in debt and defaulting on your payments can really make life difficult for you. You may also be denied when the time comes for you to buy a car, especially if you go to a large dealership.
There are places that sell cars to people with ‘Poor credit, Bad credit, No credit’ but charge an astronomical interest rate. The same goes for attempting to buy a home. IF you can locate financing with your poor credit, you will pay a higher interest rate than someone with good credit pays on their mortgage loan.
Guard your credit rating with zeal and try to keep it as pristine as possible. It can have quite an influence on many aspects of your future.
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