How Bad Credit Can Affect Your Future Goals

They say money can’t buy happiness, which might be true, but it can still go a long way in turning your dreams into reality. SO, you should always look for opportunities that can make you a better person and improve your quality of life and income. You should also take personal finance seriously as can affect your credit score which is an important factor involved in loan disbursements and even jobs.

The following are some of the ways how your credit score can interfere with your future goals:

  1. Loan Problems The biggest difference you will observe if you have a low CIBIL score is that it’s nearly impossible to get a personal loan for bad credit. So, if you want to start a new business or buy your own house in the future, then it can be a big problem for you if you can’t even qualify. If you try hard, then it’s possible to get an ICICI home loan or personal loan. However, you are most likely to get a bad deal in the form of either a high-interest rate or unfavorable repayment terms.
  2. Financial Burden When you are unable to get a loan at a good interest rate, then it’s easy to get trapped in debt. This is because at a high rate, your EMIs get bigger and the term gets longer. So, until you make the last payment which is usually several years ahead in your life, you have to make tough decisions on a regular basis. You have to cut down on luxuries and develop a habit of saving every single penny. This can affect your quality of life and even your state of mind. This is the reason why a lot of people who are unable to manage their loans end up developing depression and anxiety. When your loans make you feel stressed and overwhelmed, you can’t help but wonder why you had to settle for a personal loan for bad credit. Unfortunately, they are left with no choice but to let go of their dreams being unable to cope up with the financial burden.
  3. Lack of Jobs What would you say if someone told you that you can miss out on job opportunities if you don’t have a good credit report? If your answer is that you won’t believe them, then you are in for a surprise. Whether you like it or not, your career can easily get impacted by your creditworthiness. This is because more and more companies have started screening job seekers on the basis of their credit profile. This strategy is especially seen in the banking sector which was started in India by the public sector State Bank of India (SBI). In 2016, when it published an advertisement for available job vacancies, it said that candidates who have a poor CIBIL score or a history of loan default would not be considered for any of the positions. Disqualifying talented professionals just on the grounds of a poor credit report may seem draconian and unfair. However, the truth is that top companies are realizing the correlation between an individual’s credit report and their personality. It’s seen that people who have a high credit score are more responsible, punctual, and trustworthy than those with a poor score. So, you may lose on some of the best job opportunities if you don’t pay attention to your credit report. Your Dreams and Credit Report

Looking into the various examples above, you can now see clearly why it’s important to develop high creditworthiness if you want to enjoy a financially secure and comfortable life. Your credit report is easily one of the most important documents that you can’t afford to overlook. So, take note of the following to keep your credit score high:

  • Always pay your credit card bills and EMIs on time
  • Use your credit cards responsibly
  • Avoid becoming a loan guarantor as much as possible
  • Don’t apply for a loan at several banks at the same time check your credit report frequently

The main takeaway here is the If you care for your dreams, then you should care for your credit too. There is no other way around it.

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