How can Bad Credit Mess Up Our Life

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How can Bad Credit Mess Up Our Life?
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As the name points out bad credit is always
bad for us. It is something we don't want to be
linked with our finances. Unfortunately, we may
have less than stellar credit at some point of
our life. Credit scores show a person's credit
worthiness. Banks thinks credit scores as a good
indicator for an individual's future financial
behavior. The harmful consequences of bad credits
are undeniable.
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The following things can get costly or are
unachievable if you have bad credit.

• Car Insurance
• Mortgage Loans
• Credit Cards
• Car Loans
• Cell phone Plans
• Job Hunting

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Car Insurance
Insurance firms check your credit score when
arriving at a rate. Like banks, they presume your
credit score, which will show how unsafe of an
investment you are. This means that you may have
higher than standard rates for years or that you
may not be accepted for insurance coverage at all
by a certain firm, depending on how low your
credit score is.
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Mortgage Loans
Every time you apply for a loan for
purchasing a house, you can be sure that
financial institutions look at your credit score
during this. Bad credit means probably being
denied a loan or higher interest rates. The
interest you pay is based on your level of risk
and the existing market rate. The poorer your
credit is, the higher your level of risk is and
the higher your interest rates will be.
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Credit Cards
If you are granted for a credit card, you
can expect on having higher than average interest
rates. Credit card interest rates vary anywhere
from 7 percent to 36 percent. With a good credit
score you can anticipate to fall anywhere between
10 percent and 19 percent. With a bad credit
score, you can expect to be somewhere around 22
percent and above.
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Car Loans
When you apply for a car loan, banks will
definitely check your credit score before
approving your loan. Interest rates on your loan
will sway with the results. Poor credit score
means high interest rates. But there are firms
which offer car loans with affordable interest to
people with bad credit.
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Cell Phone Plans
Are you aware that some cell phone provider
firms, like car insurance firms, check your
credit score? They actually do that. According to
your credit score they can either accept or
reject you.
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Job Hunting
Under some law, a future employer may have
the right to review your credit report with your
written approval. HR managers can use these
details when making their decision. But this law
is not applicable everywhere.
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Like this a bad credit can affect you really
bad in many situations. Always be alert about
your credit score. Do not spend money, which you
can't repay. Maintain a decent credit history.

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Addison Credit offers car loans for people
with bad or poor credit. Addison Credit offers
financing choices and toil with you to choose the
best plan for you. Addison credit has served the
communities of Toronto, Mississauga and Oakville
for more than 57 years. Addison Credit helps
customers to find success in attaining the bad
credit car loan they need.
http//www.addisoncredit.ca