You might have heard the term credit rating or credit score before without actually knowing what it means. Your credit score is determined by your history of borrowing and how effectively you have paid back any accumulated debts. But, as you’re about to discover, credit scores can affect more than just your finances.
A bad credit score will almost certainly impact your chances of buying property. That’s because people with poor credit scores can’t access the best mortgage rates on the market. Instead, they have to look for bad credit mortgages that can ultimately end up being debt traps. So, you definitely need to improve your score before you even think about buying a house. A poor credit score can also affect your ability to rent property. A landlord might reject your application based on poor credit.
Getting A Job
While it is rare, employees have been denied a position at a business due to a poor credit score. This is usually for higher up positions in a firm where the role involves dealing with financial issues. Generally speaking, someone with a poor credit score may be considered untrustworthy.
Although, the main issue with a bad credit score is that it stops you borrowing money. The only loans that will be open to you will be based on bad credit. Again, these are dangerous and often include severely high levels of interest. This infographic below has more information on the credit score such as how you can check on yours.