The word “credit” has appeared frequently in a variety of contexts including advertisements and news over recent years. Credit default swaps unpinned the mortgage crisis. Target’s credit card data breach. Greece’s debt situation and credit risk. “Sign up today for a new credit card starting at 0% APR.” “Bad Credit, No Credit? No Problem! We Sell Cars to Anyone!” It is likely you have seen Central Florida credit repair companies advertised in a number of places.
What I am focused on here is what a negative credit score can cost you in currency and opportunity. The following is a list of the ways a negative credit score can affect you, whether you are an Orlando/Central Florida resident or you live in Chicago:
1: You will pay a higher interest rate on loans or credit cards than someone with a good credit score. In the eyes of a lender, you are a riskier investment than someone who has a good credit history (and correspondingly a better credit score). As a result of this, you’re going to pay a high interest rate.
Your Cost: Could end up being hundreds or thousands of dollars over the term of the loan.
2: You might have trouble renting that awesome apartment you have your eye on.More landlords are requiring a credit check prior to accepting tenants, which makes sense because they can use a credit score to measure risk.
Your Cost: The opportunity to live in the place of your choice.
3: You could miss out on that amazing job opportunity. Not every job requires a credit check but some in the financial services industry and a few others do. It isn’t illegal for employers to ask for your approval to check your credit history and to use that information in deciding to hire you (or promote you). It would be a shame to miss out on a great opportunity solely as a result of your credit history.
Your Cost: The opportunity for a job and what could be thousands, tens of thousands or hundreds of thousands in lost wages over the course of a career.
4: Trouble buying a house or a car. Obtaining financing for either of these purchases could be problematic. Even if you are able to get financing, it will take your credit into account and your rate will be correspondingly high based on the risk.
Your Cost: The opportunity to live in the place of your choice or getting the car you wanted.
5: Problems getting a cell phone. In modern America, the cell phone is ubiquitous. Unfortunately phone companies have begun screening applicants for service based on their credit. While prepaid phones and cards avoid this sort of problem, this can be a more expensive solution.
Your Cost: The aggravation of having to buy prepaid phones or having to go without.
Good news; not all is lost if your credit score isn’t up to snuff. There are many common sense ways for you to improve your credit score which include getting current on delinquent debts and making sure you examine your credit report for errors. If you live in Central Florida and you are looking for an Orlando Credit Repair attorney, look no further than Widerman Malek Celebration Law Office. With the guidance of an attorney who understands the ins and outs of the Fair Credit Reporting Act, you can begin taking the steps necessary to avoid the costs outlined above.
