What is Bad Credit?

Are you really keeping up with your payment agreements? Read these 5 secret signs of a bad credit to know the truth.

The reasons for delayed payments, at times, can far more complicated than it looks on the surface. When you can’t pay your obligations on time or you haven’t paid them at all, it is difficult to get approved for a new credit.

Sometimes, you may think you’re just too caught up with pressing needs but will eventually get back on track, when in truth; you may be heading towards bankruptcy.

Secret signs of bad credits

When you’re missing your monthly payments on credit card debts, mortgage and other types of loans it’s easy to overlook all the important issues that turn up now and then, such as interests and late fees. Before you knew it, it’s the little things that’ll ruin your finances as interests spike up and all the associated costs of delayed payments snowball over time.

Don’t let busy schedule, availability of easy credit and, lack of financial understanding and money management skills wreak havoc on your finances.

Keep an eye out for the hints of bad debts and then, and fix them before you lose the things that you worked hard for.

  • You get turned down for a loan or you get one with a higher interest rate

Borrowers with good credit score gets affordable financing and average interest rate.

  • Your APR is raised or your card issuer refuses to lower the APR of an existing account
  • You Credit Card Issuers Close Your Accounts

Credit card issuers review your credit and they will typically close your credit account when they got zero balance.

  • Default Notice becomes a day to day occurrence

If you’re debtors are threatening to sue you for delayed payments, you’re in trouble.

  • A debt collector contacts you for unpaid utility bills and other payments for your living expenses
  • If you failed to pay your utility bills, medical bills and other necessities, credit collector may come after you and this may hurt your credit score.
  • You only get Subprime Credit offers

When your credit score dropped below the threshold, the lenders that offer prime credits will no longer entertain your applications nor give you pre-approved offers.

  • You get turned down by utility companies unless you pay a deposit

Why did I get bad credit?

The most obvious reason is your inability to pay your financial obligations on time, getting more debts than what you can normally afford and maxing out your credit cards.

But, your credit can be due to erroneous entries and wrong information gathered by the reporting agency. There is also a chance of identity theft which can lead to a sudden drop in your credit score.

Do you want to know more about bad credit? Prevent it, fix it. We can help!

Contact us today!