5 Ways Bad Credit Can Affect Your Life and a Card to Help Fix It

Most of us probably have some understanding of how a bad credit score can affect your ability to get a new credit card or some other form of a line of credit. A lower credit score puts up a red caution flag to lenders as they are trying to judge how able you may be to pay back a loan. If they see a low credit score, they may outright deny you the loan or credit card or charge you a higher interest rate. However, bad credit extends well past your ability to obtain a loan or credit card. Here are five other ways bad credit can affect you:

Career: As many as 70% of companies do credit checks on job candidates before extending an offer. A poor credit score may reflect poorly on a candidate and put some questions in the hiring manager’s mind about the candidate’s responsibility level and organization skills. An employer may also be hesitant hiring someone with poor credit because of possible collection calls and wage garnishment.

Utilities: If your credit score is poor enough, you may need to put a deposit down before you can get the water and electricity turned on.

Renting a Home or Apartment: A landlord may reject your rental application if you have bad credit. This is for several reasons. First, they may question your ability to pay rent every month or willingness to pay on time. In addition, some landlords put a morality spin on a poor credit score and associate it with possible bad behavior concerns and other issues they may not want to deal with.

Home Life: A poor credit score can create stress at home, especially if there is money trouble along with poor credit. A married couple does not share a credit score, so a spouse with a disproportionately low score could affect a couple’s ability to get a mortgage, car loan, etc. This could cause tension as could constant debt collection calls, letters, etc.

Car Insurance: This is another one people don’t often know about. A low credit score could actually cause your premiums to go up. Insurance companies say that people with lower credit scores often file more claims.

Although bad credit can certainly affect your life in many ways, it is not a life sentence. In addition to paying your bills on time and reducing your overall total debt, a secured credit card for bad credit like OneUnited’s UNITY Visa can go a long way in helping individuals rebuilt their credit. The UNITY Visa reports to all three major credit bureaus and acts just like a Visa card. If you have poor credit, getting new credit may be tough. The UNITY Visa is a viable and responsible tool to help you get your life back on track.

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OneUnited Bank, the nation’s largest Black-owned bank and FDIC insured, understands we have to focus on money and technology to close the racial wealth gap. With your support, by simply opening and actively using a OneUnited Bank account, we will continue to accomplish our mission!


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