Case Study: My Experience With Finances

How to Check Your Credit

You definitely have experienced some negative effects if you have a poor credit score. You will not have the ability to borrow money, for instance, signing up for another credit card, applying for a loan or taking out a phone contract if you have a poor credit score that resulted from overspending on credit card limits or missed payments that took place some years back. Minding your credit score and making sure that it stays intact has some benefits. Let us discover.

1. Paying for a house.
There are chances that you will one day hope to own a property of your own if you are currently renting your home. Homes are worth hundreds of thousands of dollars and can be passed down to your kids as inheritance or can be sold; you will also get the freedom of building extensions and decorating your home the way you like. A poor credit history will make your passage to the property ladder a very difficult thing. Mortgage lenders consider lending money to a borrower with a poor credit history as a risk.

2. Career opportunities.
Not only will your ability to borrow money be affected by your bad credit history. People with a bad credit score are likely to get turned down for employment positions that they would have perfectly fitted with a good credit score. For instance, if you want to work in within the finance industry, it is impossible for you to be hired by a bank of any financial institution if you have a low credit score.

3. Getting the Required Finances.
Although you may not imagine yourself in a tight situation whereby borrowing finances is the only option, you aren’t guaranteed that it won’t happen to you. If you’re in such a state where you need some quick cash, your capability to apply for a quick loan or even take out your credit card will come in handy. When you have a poor credit score, it means that you are at a higher risk of your loan application getting rejected if you ever need to borrow money in future.

4. Getting a Commercial Loan.
Because entrepreneurship is now within reach more than ever, more and more investors are starting their own trades. But if you have a low credit score, then you may not have the ability to source for the needed funds to boost your business. Although you may still have other options such as angel investors or crowdfunding, the first source of funds for most investors is through a bank loan. Despite the funds being for commercial use only, your personal credit history will be taken into consideration.