subject: Problems And Hurdles Caused By A Bad Credit Score [print this page] A bad credit score is no where less than a curse these days rendering you unable to gain many of valuable profits by many creditors and banks, thus degrading your already bad financial situation. Here are various difficulties or hurdles you may face if not having a good credit score. But, first of all let me tell you the reasons for bad credit score that include unpaid debts or loans, late payments or charge offs. Unpaid taxes or huge debts may also cause decreased credit score and thus damage to your credit report. (Credit Repair Services)
Here are some difficulties you may face if you have, knowingly or unknowingly, a bad credit score and a bad credit report.
Rejection of all new loans and debts that you may apply for. These include your house loans, business loans or other financial supportive loans you may ask for. So, before going into a rejection phase of bad credit score, keep an eye on your expanses, payments and debt statements included in your credit report.
New debt card or visa cards applications are also not approved as a bad credit score means that you are previously not paid the debts or paying it late. These cards are issued conveniently to those only who have a credit score more than 700 or so and they are not much investigated for their references and accounts.
High interest rates are also one of the most unbearable consequences of a low credit score. If in any case, your debt is approved you have to pay a real high amount of interest rates that further declines your financial situation rather than helping it. Sometimes, it so happens that you are unaware of bad credit score and paying high interest rates on all the new debts.
Demands from the creditors is also increased which may eventually result in selling of some of your valuables that costs you much more than the original debt. (Credit Repair)
Your credibility in the market is also lost if many of your share holders know that you have a low credit score because it is considered to be an early stage of bankruptcy. Directly or indirectly it will definitely affect your money dealings making you a doubtful and less reliable dealer.
Unpaid debts, delayed payments and charge offs are also written in your credit report that will be added up in your taxes and even if you have regular tax payer, you have to pay an extra amount because of addition of these amounts into it.
