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The hidden costs of bad credit after bankruptcy

Many people don’t know or don’t care about your credit. In many cases, either jokingly said: “I probably have bad credit” or not, assume that your credit is good. Most of the people just assume that it is neither good for the fair…

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Understanding that your credit is considered really bad in general is not to know until it’s too late.

In general, the consequences of the bad credit are quite obvious.

Would you like a store credit card to buy that big screen TV? Denied. You like to get the car back to the type of special financing? It is not a coincidence. Looking to rent an apartment or buy a new home? Not without a large deposit.

While these are the consequences of obvious do not have good credit, there are also many hidden costs of bad credit, you may not have considered.

Here are 3 of the not-so-obvious costs of bad credit:

1. Interest rates

This applies to almost everything, if you’re going to find a new credit card, the purchase of a new car, or buy a new House.

The lower your credit score, more is your interest rate will be. Although the rate difference may seem small (do the difference between a rate of 7% and 9% rate is only 2% not?), the amount that will have to pay during the period of the whole of the loan (5 years for a car, 30 years for a mortgage) is joining with several thousand dollars more.

Take special care with credit card offers. They offered the card at a very low rate (2.9%, 8% or 11%), but have very small print that allows that rate from 18% to more than 20% if you are late on a single payment firing or go over your limit.

2. Higher car insurance rates

Yes, it is true.

Safe car companies build your premium on your credit score.

Even if you have never been in an accident, it was never fined for speed and always wear your seat belt you will not get the best rates.

A bad credit score can result in higher insurance premiums and may even result in a denial of coverage!

3. Superior financial stress

When most people talk about the negative effects of bad credit, usually speak of numbers: scores of credit, interest rates, monthly payments, etc.

However, one of the major consequences of the bad credit is the financial stress that causes in life.

How much more money spend a penalty of having bad credit means less money in your bank account at the end of the day. Less money for more stress, which can have negative effects on you, their work and their relationships.

Half of marriages end in divorce, and financial problems are usually cited as one of the main causes of a failed marriage. The bad credit certainly doesn’t help the situation.

The number one people confuse financial make is not knowing what your credit score is and understand the consequences of good or bad credit. Although there are many obvious disadvantages of having bad credit, there are also many disadvantages hidden have a bad credit.

Know, understand and manage their credit is an important part of your financial plan, since effect almost all aspects of his life.

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