The Dangers of Bad Credit

A low credit score is very serious.

Suffering from Emergency Expenses

Emergencies can arise at any time. Many people do not even have an emergency savings account, so they do not have anything to fall back on in an financial emergency situation. This is a time where your credit score is crucial. You can use whatever credit on your credit cards you have in order to gain money for this emergency until it passes over. These emergencies can be difficult to overcome if you do not have credit to fall back on. What money will you use then? You do not want to put yourself in a position to be overtaken by emergencies because of your bad credit. Use credit restoration in order to help you gain some of that credit back.

Not Being Able to Buy a Car or Home

Automobiles are a fact of life for most people. They need them to take their kids to school everyday and to go to work. There will come a time when you need to purchase a car. When this time comes you will need an auto loan. What happens if your credit is so low that you get turned down for an auto loan? How will you be able to afford that car now? You may now find that it is very difficult to make it to work on time. It is tough to struggle with finding an auto loan that will fit your bad credit needs.

The same thing goes with a home. It may be time to start a family; therefore you will probably need to get out of that apartment. A mortgage is not something that you are entitled to, you must earn it. Bad credit can really halt your mortgage search. Therefore you now find yourself continuing to dump money in an apartment without seeing any return. If you had good credit you would be in a house and earning equity and value within the house.

Click here to learn how to eliminate your bad credit score.

10 Side Effects of a Low Credit Score

According to the results of the 2012 National Financial Literacy Survey, many of us could use a little more literacy when it comes to our finances. The report, released by the National Foundation for Credit Counseling (NFCC) and the Network Branded Prepaid Card Association (NBPCA), showed that 42 percent of Americans give themselves a C, D, or F when it comes to their knowledge of personal finance and these grades are in line with the rest of the survey results.

Here are a few stats that stood out to me from the survey:

39% Carry Credit Card Debt
This is roughly the same number as last year (40 percent), so at least things aren’t getting worse. But this is a precarious position to be in. If you’re one of these folks, and it’s at all possible, stop using your cards and focus on paying down the debt. I suspect, though, that some of those in this group are carrying debt because they don’t have the cash flow to pay the bills off every month.

If you must carry a balance, use the card with the lowest interest rate. And if you have excellent credit, check out zero percent APR credit cards. Do whatever you can to minimize your interest expense.

"What's the big deal with a low credit score," you might ask. Since so many businesses now judge you based on your credit score, having bad credit can make life extremely difficult from getting a job to getting a place to live. Here are some of the most common side-effects of bad credit.

1. High interest rates on your credit cards and loans Creditors and lenders see bad credit applicants as riskier than their better credit counterparts. They make you pay for this risk by giving you a higher interest rate. Over time you’ll end up paying more in interest than you would if you have better credit.

2. Credit and loan applications may not be approved Because creditors and lenders think you’re a risk, they might not want to lend to you at all. You may find that your applications are being denied because of bad credit.

3. Difficulty getting approved for an apartment Who knew that landlords checked credit before allowing you to sign a lease? It’s true. Having bad credit can leave you homeless or close to it.

4. Security deposits on utilities Utility companies – electricity, phone, and cable – check your credit as part of the application process. If you have a bad credit history, you may have to pay a security deposit to establish service in your name, even if you’ve always paid your utility bills on time.

5. You can't get a cell phone contract Yep, cell phone companies check your credit too. They contend that they’re extending a month of service to you, so they need to know how reliable your payments will be. If your credit’s bad, you may have to get a prepaid cell phone or go without one at all.

6. You might get denied for employment Certain jobs, especially those in the finance industry, require you to have a good credit history. You can actually be turned down for a job because of negative items on your credit report, especially high debt amounts, bankruptcy, or outstanding bills.

7. Higher insurance premiums Insurance companies check credit too. They say that lower credit scores are linked to higher claims filed. Because of this theory, they check your credit and charge a higher premium to those with lower credit scores, regardless of the number of claims you’ve actually filed.

8. Calls from debt collectors If you have past due bills, chances are debt collectors are calling you for them. It typically comes with the territory when you have bad credit.

9. Difficulty starting your own business Many new businesses need banks loans to help fund their startup. A bad credit history can limit the amount you’re able to borrow to start a new business, even if you have the greatest idea and the data to prove it.

10. Difficulty purchasing a car Banks check your credit before giving you a car loan. With bad credit you might get denied or you might get approved with a high interest rate. Most of those “no credit check” car lots charge extremely high interest rates that make it difficult to make your monthly car payments.

Making the decision to improve your credit score is the right decision!

Visit CreditScoreCounseling.com and apply for the Credit Score Counseling Membership which can help you raise your credit score and lower your risks.

How To Buy Your Dream Home

Here is Information on Buying Your Dream Home

Even though it's not easy for everyone to buy a home, it is in fact easier than ever to get a home these days with most lending agencies and banks IF you know how. Even if you don't have a lot of capital or a lot of money to put down, you can still get the home of your dreams at a very affordable price IF you know how.

A lot of us think that buying a home is a tough process, needing a large down payment, although this isn't always the case. Buying a home largely depends on your budget. If you put a down payment on your home purchase, it will go towards your overall purchase. The more money you put down on a home when you purchase, the lower your monthly payments will be.

Those who don't own a home live in rental houses and apartments. This can be a worthwhile solution, although you are still paying money towards your housing that you could instead be putting towards a home of your own. Owning a home is a dream for many of us, especially when it comes to that dream home that we all hope to own one day. Apartments and homes are great to rent - although most will cost you just as much as a mortgage payment - which doesn't make any sense at all.

Instead, you can easily convert your rental payments into monthly installments towards your own home. All across the United States, you can find of lot of banks and lenders that offer easy to get loans for purchasing your own home or real estate property at low interest rates IF you know how. With a lot interest rate, you can get the home of your dreams and enjoy low monthly payments.

Keep in mind, you need to choose a loan plan that's best for you. You can go through a bank, through a lender, or use a service online. There are many different ways that you can go, although real estate agents seem to be the most common now days. Good real estate agents will be more than willing to help you get a great deal on the home, at prices that are right for you. Anytime you buy a house, you should always plan ahead, get yourself a real estate agent, and then pursue your dream home.

If you plan your budget and take things one step at a time, you'll be closer than you think to the home of your dreams. If you choose to keep renting and pay money toward something you don't own - the home of your dreams will continue to slip away. Take action now and stop renting - find the home of your dreams and put your money towards owning it instead.

Click here to learn how to get the best possible interest rate on your dream home. The best possible interest rate could save you thousands of dollars as well as lower you monthly mortgage payment significantly. The best possible interest rate could be the difference between getting your dream home now or letting it slip away forever. Click here now.