Three important details about bad credit history

Bad credit history is good for neither the person who has bad credit history and is not good for the lenders too. It becomes hard for you to obtain new credit if you have bad credit history. On the other hand, it becomes hard for the lenders to get borrowers who may be responsible enough a person. Therefore, it is extremely important to have and maintain a good credit history and a good credit score, so that you can get better offers from creditors and lenders. There are various things too which you need to keep in mind, if you would like to maintain good credit.

Important facts on bad credit

Some of the most important facts about bad credit are:

  1. Bad credit history can result in high interest rate – Bad credit history is when have several missed payments and defaults listed on your credit report, this results in loss of good payment history. As a result, creditors can increase the APR or the Annual Percentage Rate. In addition, when you will be applying for new credit, it would not be possible to obtain personal loans for people with bad credit other than the bad credit types. The interest rates on bad credit loans are high.
  2. Bad credit history lowers the credit score – Bad credit results in lowered credit score and lo credit score means lowered credit rating too. This makes it hard for you to obtain new credit in any form. As a result, you will not only face problems in borrowing in times of emergencies. It takes time to see any improvements in your credit and you need to have enough patience regarding the same.
  3. Bad credit history makes it hard for you to get a job – When you have bad credit history and bad credit score, it becomes hard for you to get a job. So, it is not only in obtaining new credit that you may have to face problems, but you will have problems in getting a new job too. When you apply for a job, in all probability the employer is going to pull your credit report and check with your credit score. if you have a bad credit history and score, it shows that you aren’t too much of a responsible person.

It is important for you to know about the bad effects of bad credit history because, it can help you in avoiding bad credit and also working on it to see it improved. You will have to work hard in order to see any improvements in your credit. You will have to pay down all of the unpaid debts and dispute the ones which may have past the SOL or the Statute of Limitations. Statute of Limitations is the period within which the creditors can sue you on non-payment of debt, once the SOL expires, the creditors cannot win any lawsuit against you. You will have to lower usage of credit cards and carry little balance on the same.