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6 reasons you should fix your credit score

28th July 2021 Print

Having a bad credit score may seem like the end of the world. You’re not wrong to think this, as you could miss out on many things. We talked about them below. 

Rejected Rent Application 

Landlords make sure they get tenants that not only make rent every month but take care of their property too. They do this by conducting background checks. They look at your credit score by requesting a credit report. If they see a history of debt, they would know that you might not be able to make rent. 

If you have bad credit, your rent application might get accepted. However, the landlord would charge higher rent to be on the safe side. 

Limited Lenders

Conventional lenders won’t want to work with you. This isn’t hard to imagine, as the poor score means that you’re a risk. If you’re looking to get a mortgage, the chances of finding anyone to work with would be especially low, as you’d be borrowing a massive sum. 

All is not lost, thankfully. Although most lenders won’t want to work with you, there are some that specifically offer bad credit loans. When you’re working with them, you can get a bad credit personal loan in 5 minutes or less, as they accept applications online. 

If you’re in Nova Scotia loans for people with a history of debt are not hard to find. 

Higher Interest Rates

We mentioned how conventional lenders might not want to work with you if you have poor credit. However, some might. But they would charge higher interest rates. They might not offer as competitive of a payment period either. Also, if you miss payments, you likely won’t be getting a good payment plan to catch up on payments. 

Missed Career Opportunities 

If you work in the finance field, and have to manage money, employers will think twice about hiring you. They might think that you would not be able to manage the cash well.

Higher Insurance

Just like lenders would charge higher interest, this is also true for insurance companies. You would be a risk to them. Your application could get rejected. 

If you currently have an insurance plan, your credit score worsening would cause the premiums you pay to rise. The premiums won’t rise if the score worsens, though. 

Limited Phone Plans

Do you want a postpaid phone plan? Wireless providers would do background checks first. There is no way you’d be able to get the connection if you haven’t been paying bills. 

Having poor credit may seem like the end of the world for good reason – it would be hard to find somewhere to live, and you may not be able to get certain jobs. Thankfully, it’s not hard to improve bad credit. 

All you need to do is pay off debt regularly. If you have poor credit, applying for a bad credit loan might be a smart idea. You can use it to pay off any debts you have, and you regularly paying the loan back would be tracked into your report.