Bad Credit Score

Bad credit scores can make it difficult to borrow money from lenders. When poor financial history is part of an individual's life, that person is often given very high interest rates for loans on cars, homes, and other expenses. Also, poor financial history can lead to the inability to receive a loan or financial assistance at all. A bad credit score can cause many serious problems for an individual that reach far beyond the scope of just financial problems. Emotional issues like depression and a lack of confidence can hinder the individuals ability to control the situation, causing additional debt and even worse financial ratings.

When a consumer does not pay off debts or defaults on loans, bad credit scores are attached to the financial record. This can make it hard to receive low rates on loans. Many times, especially with long-term and high value loans, the interest that must be repaid on a loan is very expensive for the consumer. The higher the interest rate reaches, the more money that has to be repaid. Poor financial ratings will often leave the individual with the worst and highest rates of interest possible because they are seen as a risky investment by the lender.

Being labeled a poor financial risk with a bad credit score can also make it impossible to receive loans or other accounts. If a financial rating is poor, many banks or other institutes will not approve a loan because of the risk involved. Bad credit scores mar the financial record of the individual until they have the opportunity and the means to correct these problems. Without addressing credit problems, the consumer will have trouble receiving even the smallest loans, making it nearly impossible to receive loans for much larger purchases like a car or a home.

This situation will not only affect the financial state of the individual, but consumers can also experience severe emotional problems. Depression is a very serious problem that can stem from financial strain. The person may feel as though they have no way out of the problem, leaving them in a poor mental state. Also, financial burdens that are difficult to repay can lead people to have very low self esteem. Without self-confidence, the individual may have trouble in many facets of life, including getting a job if they are unemployed or receiving a race or promotion if they are currently working. When money problems exist, it is important to take control early before the situation gets out of hand and leaves the consumer feeling unhappy and inadequate.

Bad credit scores can tarnish an individuals financial record. Often in this situation, it is very difficult to receive low interest rates on loans and credit cards. This situation may also mean the consumer will not be approved for loans at all. Financial problems can lead individuals to depression and other emotional problems. A bad credit score creates serious burdens for people and can often lead to further financial trouble if the situation is not resolved in a timely manner. When financial woes and strain take over an individuals mind and spirit, it is important to seek solace from God. "Be perfect, be of good comfort, be of one mind, live in peace; and the God of love and peace shall be with you" (2 Corinthians 13:11).


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