Contingencies just like uninvited guests, which might occur in our life anytime. It is not always necessary to have cash ready to save our family from the financial crisis. Sometimes we have to borrow money from a bank; in that case, the first thing which they check is your credit score. If your credit score is not good, it will land you in a very tough situation. It takes a lot of time to rectify your credit score and make it good.

Side-effects of having a bad credit score

Are you habitual of paying your bills and loan amount after the due date? Here are some consequences of a bad credit score you might face :

1. Difficulty in getting the loan
To get a loan easily, make sure you maintain a good credit score. Banks prefer to give loans to people who have a good credit score as this reduces the risk of nonpayment of the Loan Amount. In case your credit score is very bad, you will not get a loan easily; you will have to arrange money from money lenders or any non-banking institution.

2. More interest rates on loans
Sometimes banks agree to give loans to borrowers having bad credit score, but the rate of interest they charge on the loan amount is high. A good credit score helps you get a loan easily and helps in getting a loan at a lower interest rate.

3. You might miss a good job opportunity
Many companies these days ask their employees to present their credit reports to check the employee’s financial history and determine their credibility. In case your credit score is not good, you might miss the job opportunity. This can prove to be unfavorable for your career.

4. It would be difficult for you to obtain credit cards
Credit cards help you make purchases even with an insufficient balance in your account. You can get good rewards on them, But if your credit score is low, the bank will not be willing to issue a credit card in your name.

5. Difficulty in getting the building on rent
Most landlords nowadays verify your credit score from the bank before giving their building to you on rent. The security deposit can be higher for those whose credit score is low due to trust issues.

The bottom line

Have a poor credit score? Don’t worry; we are here to help you know how to raise your credit score. We offer credit improvement services to help you improve your credit score and get loans easily and at a lower interest rate. Visit us at https://www.socalcredit.com/ to know more about us.

Nice and interesting article.

But I think this is not strictly for Nigeria right?

In some nations, people try to get a credit record to make their credit applications stand better chances for positive considerations.

Here in Nigeria, it is a thing of pride for one to say “ I never borrow from bank before “, or “ I no need bank money” etc.

Credit checks for now appear to be considered strictly for loan applications, even though some people fear that their current loan status might show on their statements presented for immigration or visa purposes.