Having bad credit....Is it really a big deal?

Question

Will that be the end of your life?.......I mean I know not literally, but how bad is it? How hard will things get?......Is it really like the end of your life?

How many of you have bad credit?

Answer 1

It depends on how you plan on living your life. Do you plan on paying for everything in cash? Are you disciplined enough to save that cash for the big purchase you want to make? Not everyone is. I've lived successfully with "no credit" as one would put it. I understand the importance of good credit, and am working on building it. I have a car, a good paying job, etc. Anything I can't pay for in cash, I don't need. Too many people live and die by their credit score.

The only big ticket item that you should really ever worry about a credit score for is a house, because the chances are you won't be able to pay for this in cash.

Anything else is secondary. If you can't write a check for it or swipe your bank account debit card for it, you don't need it. This includes cars and other incidental items. My savings account is my slush fund in the event of a major problem. Not plastic. Plastic is never a good idea to have as "stand-by" because you have to use your plastic to keep your score up.

The way I've managed my credit is if I make a purchase on a credit card, that amount goes into a secondary bank account. The bill is then paid off at least by 75% - You don't ever want to fully pay it off, because as outlined in another question, your credit score is a balancing act of mostly credit limit, balance carried and your payment history, coupled with the phase of the moon and the mood of the sun that day. (the last phrase is a mild level of sarcasm). The remaining balance is always kept in the secondary bank account (If I pay off 75% of it, 25% remains in the secondary account) that way if I ever decide to close the card, I can pay the card off in full and close it.

Answer 2

It's not just having trouble getting a car loan or paying more for a mortgage. With bad credit you may be unable to rent an apartment or get a good job. Background checks are a way of life today. The Internet makes it almost too easy for a prospective landlord or employer to look up many things about you, including your credit history. Many companies will see poor credit as a sign of irresponsibility and will not consider hiring you.

Answer 3

having bad credit will not end your life, but it basically ends any chances you will get ahead. This in turn puts a hardship on your children starting their lives. For Starters, bad credit will keep you from living in good areas. You will have to pay horrible interest to buy a house, and so won't be able to afford alot even with a good income.You will be stuck renting and giving your money to someone else each month. You will also be rejected by many apartments thus limiting your options. Secondly bad credit keeps you from using money to your advantage so you can never get ahead. Buying a home is the single most likely way for Americans to improve thier financial situation. Everyone, even the poor, who purchased in California in the eighties now owns an asset worth close to half a million dollars. That's a good retirement. You will often be forced to secure loans or other life necessities by putting money down. This is money that you could be earning interest on that is now going to someone else. Bad credit does not kill you, but it definately kills your chances to get ahead in life.

Answer 4

Well, I have great credit but I have a friend who filed for bankruptcy...one of the worst things you can do to mess up your financial life. Let's just say she screwed up at least 7 years of her adult life. Couldn't get loans, etc.
I think that what she is learned (the hard way) is the beauty of living within her means and having self discipline. She is now a devout minimalist, has scaled everything down, doesn't shop to fulfill some missing need and finds other ways of entertaining herself. She is not a typical American anymore. She has decided not to be a consumer, but to live lightly.
It was a hard journey, very important.
I personally think having bad credit is a sign that things aren't going right in your life. You can get out of it, but it takes a long time. Living simply will keep us from ever having to go down that road.

Answer 5

Bad credit is a big deal. Most people, at some point in their lives, will borrow money. If you have bad credit, 1) you'll be lucky to get a loan. 2) if you get a loan, your monthly payments would be tremendously highter than someone else with the same loan that has good credit.

You will probably need loans to obtain the following:
A house for you and your children.
A car so you can have dependable, reliable transportation.
A loan to put a new roof on your house after living there for 5 years.
A loan so your children can go to college.

Answer 6

Unless you can pay for everything throughout life in cash (house, car, college, etc.) it is a big deal. With bad credit you will not be able to qualify for loans and if you do, the interest rates will be sky-high.

I once had bad credit but paid off the collection accounts and my scores are now in the 700's...life is much easier now!

Answer 7

Yeah, it stinks. You can't get a secured credit card, you can't get a loan unless you get a really high interest rate. You can't buy a house. You can't even get a cell phone without paying a huge down payment (They want like $400 to $600 before they will give you a phone.) Some places check your credit when you apply for a job or try to get an apartment.

Personally I think credit is over rated. How DID we ever live 30 years ago before credit really caught on?

Oh and on bankruptcy...Lots of people file for it now a days. And it isn't the black mark on your credit like it used to be. I have a friend who filed and within a month of the filing she started getting offers (pre-approved) for credit cards. Now a days people look at bankruptcy as you don't have any debt.

Answer 8

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

Answer 9

Not too many people have bad credit. It is a big deal. Good credit gives you better interest rate when you borrow. Bad credit does not.

Answer 10

it is a big deal. the credit you have detemines the rates you'll be charged on cars, homes etc... if you take good care of your credit, it'll save you lots of money in the long run.