Most of the consumers who apply for either a car loan or house loan
,take the time to analyze their old credit habits as new credit knocks on their door in the form of loans.Some consumers dont realize that a bad credit score can hamper their present and future living conditions.They cannot avail any new credit due to their poor credit score.Customers are verified in a regular manner by most of the business companies regarding their credit report.If a company feels that the concerned person is short of required credit score then company makes adjustment with the current relationship with its customers.The company even neglects payment history of the concerned person with a bad credit score.The credit card companies usually increase the rate of interest for a person with poor credit score.Even a sincere customer with regular repayment to the credit card company also can face similar criteria.Few people with poor credit score even dont realize all the terms and conditions of a credit card company.As a result of this,they may be slammed with a higher fees amount.If a person makes late payments to its lender company then he/she would be exempted from the grace periods of payment by certain business owners.The person is categorized in a great risk for any credit on the basis of internal credit policies of the company.
Low credit score also affects the rate of insurance.People are obliged with higher insurance rates due to their bad credit score.Some of the tough insurance companies even do not bother to cancel the insurance policies for a person with poor credit score.The insurance companies can cancel insurance policies without prior notice to its customer.People with low credit score are asked to renew their insurance policies due to a new higher rate of interest offered from the concerned insurance companies.Prospective employees are checked for their credit reports by most of the companies.And the companies dont select customers who are not satisfying the certain level of eligibility criteria related to the credit score.The reason behind this can be the expectation of poor employee performance and distraction due to low credit report.Companies ask for a security clearance and people with poor credit scores are hugely affected. The lower credit rated people are considered as the greatest risk to the company security regulations.A person with poor credit scores is affected by number of ways,which are sufficient to make life of a person worse than a hell.The present as well as future financial status is badly affected. Banks and other lenders make life of a person worse by not providing any kind of loans or credits.The interest rates are raised up to thousands of dollars.As a result of this, a person with poor credit score is burdened with more credits.The shorter payment cycle,higher premiums as well as higher rate of interest make life uncomfortable to the concerned person with low credit scores.Atti Thiry is a credit repair expert with Elite Credit Repair. Elite Credit Care specializing in credit repair and boosting credit scores. You can find him on the web at www.EliteCreditCare.com