Bad Credit Implications
There are some definite down sides to bad credit when applying for a loan, the biggest of which is finding someone to lend to you when you really need the help fast. This is where the payday loan industry comes into play. When traditional lenders refuse to work with you, these alternate loan programs may be able to help. It comes at a high cost though with APR rates higher than the banks.
Your credit score is just one aspect that is evaluated when applying for a payday loan. Your more recent financial activity is a stronger indication of you actual credit worthiness than your credit report. We all make mistakes but we learn from them!
Side Effects Of Bad Credit
According to about.com there are 10 major side effects to a low credit score.
- High interest rates on your credit cards and loans
- Credit and loan applications may not be approved
- Difficulty getting approved for an apartment
- Security deposits on utilities
- You can’t get a cell phone contract
- You might get denied for employment
- Higher insurance premiums
- Calls from debt collectors
- Difficulty starting your own business
- Difficulty purchasing a car