How The Credit Report Can Affect Everyday Life
Credit reports can be a major part of daily life. How it affects individuals all varies on the individual score. Some affects can be major to one’s life. Major purchases, job searches, and rates for loans and credit cards are all affected by credit rating in some way.
How a Major Purchase is affected
Any major purchase is affected by credit in one way or another. The two popular major purchases that most may come to think of are buying a home or car. Buying a home depends heavily on credit. Most real estate agents, buyers, and banks prefer to work with good to excellent credit. Bad credit or even having no credit can hinder the process dramatically in buying a home. For this American dream to come true, credit has to be decent to obtain a loan.
This same principle can apply to cars also. The credit rating can help qualify for a car. When there is bad credit though, payments can be expected to be high depending upon the type of dealer. If bad credit is around, then buying privately owned is often the option to obtain what is needed.
Credit affects Job Hunting
The need to obtain a purposeful job could be a major goal in life. This can be severely hindered by the credit rating. One could wonder why credit has to do anything with obtaining a job. In some sectors of the job market, credit is no concern. If wanting government employment of any kind though, credit will be a factor needing to be looked at. When employers from a government agency see bad credit, they think that the person is desperate for money because of debt. This is normally not the case, but employers for professional firms normally prefer to hire one who has good credit at least.
A loan will be hard to come by with no credit or bad credit. But, on the off chance that a loan is given then the loan rates need to be watched carefully. The average loan rate that is advertised at banks and other institutions is primarily for those select few who have very good credit. If bad credit is present though and a loan is actually given, then the interest rates alone can be high. With most cases though, a loan is rarely given if the credit is below poor.
To build credit most times a credit card is needed. This can be a difficult task to complete if bad credit is present. There are options for credit cards, but normally it is expected to pay a deposit to even receive one.
The credit rating can affect many things in one’s life. It would be assumed that credit would not affect some areas of life, but bills, major purchases, and even jobs can be affected. If considering applying for credit cards, loans, or make any big change then the credit needs to be examined closely to ensure best results.