Lenders will always want to recover back their money with interest. They don’t like borrowers with high credit risk. Without good credit, a borrower will have difficulty finding lenders who offer unsecured loans or getting favorable terms on unsecured personal loans. Lenders can assess a consumer’s credit risk using the credit report which has all details on their loan repayment history, bankruptcies, credit utilization, foreclosures, credit applications and much more. Credit repair in Atlanta GA agencies can assist in rebuilding consumer credit scores by cleaning the credit reports.
Credit scores affect personal finances as well as influencing a consumer’s overall financial health. Here are some to the effects of bad credit on the financial health of the consumer forcing them to repair their credit beforehand:
Difficulty in getting loan approvals from lenders
Credit rating affects an individual’s likelihood of getting an approval for a credit application or new loan. With poor credit, you are not likely to get a willing lender, even with quality cut-offs, not many lenders will agree to loan subprime borrowers. This affects borrowers in obtaining and getting approved for loans.
Incurring high rates and restrictive loan terms
Bad credit loans often come with restrictive terms or unfavorable interest rates. A high credit score will help qualify for better interest rates on loans. A questionable credit rating will attract high-interest rates on credit cards, home improvement loans, auto loans, and personal loans, not forgetting high down payments on mortgages.
Having trouble getting a rental apartment
Landlords often run a tenant’s credit when applying for an apartment lease to see if they will be able to make timely payments on rent. If a landlord discovers that the applicant has a pattern of delinquencies, late payments, bankruptcies, and foreclosures, they may not approve the application.
This may not apply to landlords with substandard properties though. They are likely to rent out their apartments without focusing on the tenant’s credit rating. What this means for a consumer is that with bad credit, you could end up living in an average apartment whose owner does not rely on credit checks. If you desire a high-rise apartment with strict standards, you’d have to partner with credit repair Atlanta GA agency to restore your credit and allow you to qualify for it.
Getting employment or Security Clearance may be difficult
Some employers perform credit checks on all the prospective employees when hiring. If you have poor credit such as disclosures, it is advisable to get your credit restored by a credit repair Atlanta GA company to stand the chance of securing your desired job. An applicant’s credit could be the determining factor on the hiring decisions of various government agencies, financial organizations and other positions that have security clearance as one of the requirements.
Difficulty sealing a contract with a cell phone company
Your new cell phone contract may be declined due to your credit. A cell phone carrier may consider you a high-risk customer who is not likely to remit payments on time or have enough money to settle cell phone bills on time. The carrier understands that it’s easy for the customer to default on telephone charges when you have poor credit. Some carriers charge security deposits which the customer can get back after a year or two’s history of timely payments.
Higher Insurance Premiums
Many auto insurers and homeowner insurers consider credit when making policy decisions. Levels of outstanding debts and timely payment histories are essential factors for insurers. Clients with low credit are likely to be subjected to high premium payments on policies compared to those with better credit.
Potential Strain on Personal Relationships
Your credit rating can strain your personal life, including valuable relationships. The credit of a spouse can affect the other’s ability to qualify for a loan or afford a credit vehicle that you have applied for. A lender looks at both profiles to determine the credit risk, and if your spouse has a higher risk, you may have to pay a high-interest rate or large down payment. The spouse with payment flaws will affect the profile of the other, making both their credit profiles to suffer any consequences that arise. Such situations can cause tension and threaten the long-term viability of the relationship.
Difficulty in starting a business
A new business usually requires a bank loan to fund its startup. With a bad credit history, the amount you can borrow can be limited, making your efforts to start your business futile. Even with a solid business plan, your lender may not be comfortable with giving out the capital you need for your business startup.
Difficulty in buying your dream car
Before approving your car loan, lending institutions will always check your credit. Your car loan request may be denied if you have bad credit. If you are accepted, you may have to pay a high-interest rate. Your monthly payment will be high, especially if you are buying from a no credit check car lot. It is better to have a credit repair Atlanta GA company rebuild your credit and let you enjoy low-interest rates on any car loans you will be applying for.
The amount of debt owed, and your timely payments significantly impact your credit scores. Most organizations will make judgments based on an individual’s credit score. Personal credit is an integral part of anyone’s financial life. Having a long established credit history makes you a more favorable and reliable borrower when seeking financial assistance from lending institutions. You’ll get the best financing terms, perks on credit cards such as reward programs, sign up bonuses and more.
When your credit rating is not excellent, you can engage credit repair in Atlanta, GA agencies to help you improve it and become eligible for some of the best offers. They’ll help to correct any inaccuracies on your credit report, negotiate with credit unions, collectors and creditors to clear and clean your credit history. You’ll also get education and advice on how to maintain good financial habits to keep your credit score high, and also be able to track and monitor your credit every time. The sooner you get your credit back on track, the more you stand to save money,
Let’s help you repair your credit
You don’t have to spend more years before you drive your dream car or own your dream house. But a poor credit score can keep you stuck for many years. We can change that; call our of credit repair experts at 877-503-9737 to help streamline your credit report so your finances can get back to track.