Having a bad credit takes a toll, the reason being, people are so used to shopping on credit cards that when they actually are unable to repay the bills, that busts your credibility in the market. Having said that, some faults are with the banks as well, because they portray some gimmicks which are hard to believe, at the same time attractive, and so people tend to go for credit cards
SO, all your hard work gets emaciated if you have a bad credit. Actually, the trend of credit cards has become too lucid off late. And it’s an idiocy for people to use it so often. I mean, I am not saying don’t use it at all. It’s good to have one. But, if you are using it, try to be extra cautious and try to repay the bills in time or else your bills will pile up and you would be a defaulter. And once a defaulter, your credibility will go in drain. And all you have is a black mark in your credit history, which has many bad impacts on you.
- Difficulty in loan: The first and foremost thing that will impact is the Loan. If you are planning to apply for a loan, that would be a pain in the neck, because of your bad credit history. Because, you would either not be applicable for a loan or even you get one, the rate of interest would be relatively higher as compared to others.
- Stalking of the debt collectors: That would be the biggest nightmare of life. Because once your bank escalates your credit history to the collection team. They are going to squeeze the blood out of you till the time you are dead. They stalk you for the rest of your life. At least till you repay all your debts.
- 3. Can’t purchase a house or car: People these days are extra cautious when it comes to selling a car or house. They get the credit check done from their lawyers and if they find your credit history to be doubtful, they will reject your application upfront.
- 4. Starting a business: Any business requires a proper paper work, background check and bank clearance. So any glitch in your credit history, is going to affect your for life.
- 5. Difficulty in employment: Lot of companies these days do a proper background check and a check on the credit history and any defaulters, rejection is done right there.
So any paper work dealings require a credit check and a slightest mark in your credibility will sabotage your personal life altogether.
Having said that, to elude this situation, make sure you follow some simple rules:
- Never maintain more than one credit card, if your feel you would not be able to repay.
- The credit limit has to be in a limit which you can pay back.
- Always set a reminder for the credit card payments, so you pay your bills on time and be safe from any credit related issues.
- Don’t go after gimmicks and do a proper check from the banks to confirm on any hidden charges involved in it.
SO all in all, a clean credit means a clean you. So always keep in mind, a slight mistake from your side, can impact you for the rest of your life. SO stay safe and stay clean.