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Having a high credit score has advantages and effects, so as having a low one. A lot of people don’t care much about their score. What they don’t realize is that having a low score can greatly affect their lives, especially if they rely a lot on their credit. Below are the top negative effects of a low credit score that you should know of. 1. Low score=high interest rates
-If you’re trying to get a loan and your score isn’t soaring, you will surely be getting a very high interest rate. Poor scores will get you interest rates of up to 5-6% higher. That could equate to maybe a thousand dollars in the long run. With a healthy score, you will probably get of just 2% or below, imagine how much you can save if you had a high score. 2. High chances of being rejected for a loan
-Applying for a loan can be very helpful nowadays. Whether it is a student loan, home loan or a car loan it will mean a lot. But as we all know, getting one isn’t easy. If you have good credit report and high credit score, then that’s no problem. You’ll probably get the loan immediately. With a low credit score, you have a high chance of getting rejected because lenders will see you as a risk. They wouldn’t want to lend someone who they think will have problems paying them back, right? But having a low score doesn’t mean you will never get one. Some lenders will still give you the loan but with a very high interest. As mentioned above, the amount of interest can mean a lot over time if you get to save it. In some cases, the interests are so high that you’ll be paying more for it than the actual item itself. 3. Difficulty in getting a job
Yes, that’s right. Your credit score report can either land you a job or not. When companies are hiring employees, they usually do a background check, especially if you are going for high job position. If they see that you have a poor record, they would think of you as a risk for their company. These companies would want someone trustworthy and reliable working for them. Even if you didn’t mean to miss out on those payments that made your score low, you can’t blame them if they find it scary to hire you. The troubles you’ll be having with a low one, you might want to think about working on it immediately. It pays to have a good credit score. All you need is discipline and some good faith effort, if you get it right, everything will be worth it. Check your credit report free now. Get your three bureau credit report, check credit score & access daily credit monitoring, credit alerts and other resources that will assist you in understanding credit reports and making big financial decisions.
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