Bad credit — a lot of people have it, but
nobody wants it.
A subprime score makes it harder and more expensive to find loans or lines of credit in an emergency. But you already knew that. What you probably don’t know is all the other subtle ways low credit can make your life challenging.
Don’t stay in the dark forever. Here are two lesser known ways your credit dictates your life.
1. Finding an Apartment
It’s hard enough to find a decent apartment in the neighbourhood you like for a price you can afford. But now your credit score could complicate things.
An increasing number of landlords ask to see your credit report before they’re willing to rent their property. They want to see you have a fair rating or above, as this suggests you pay your bills on time.
If you have subprime credit, a landlord might reject your application. But they might not. You may be able to convince them to overlook your score by trying the following tips:
- Outbidding other rental hopefuls
- Paying several months of rent up front
- Putting down a large security deposit
- Getting a cosigner
2. Getting a New Job
Do you have an interview for a new job coming up? Then an employer credit check may be in your near future.
Sometimes, employer credit checks help hiring managers make a tough decision. If two candidates are seemingly equally qualified for the position, the person with the higher credit score could get the job.
Other times, they use employer credit checks to see if you’re fit for the job. Employers filling positions that deal with accounting, confidential information, or security may run a check to see if you pose a risk to their business.
Of course, you know that a bad credit score doesn’t mean you’ll steal from the till or you’ll share intellectual property. But that’s what employers think a bad credit score implies.
If you know you’ll have to go through employer credit checks, speak candidly with the hiring managers. Explain to them why your credit is the way it is, and what steps you’re taking to turn it all around.
How a Personal Line of Credit for People with Bad Credit
If the tips shared above don’t help you get an apartment or job, you’ll need to focus on building a credit history that impresses employers and landlords.
This may be a challenge if you have a low score due to thin credit. Traditional banks want to see a high score before they’re willing to lend to you, but you need the loan to help build a positive credit history.
Luckily, you may be able to find a personal line of credit for people with subprime credit. You just have to make sure it reports your payments to one of the major credit reporting agencies, like a Credit Fresh Line of Credit by CBW Bank.
When your payment history is shared, a personal line of credit for people with subprime credit may have an impact on your score. That’s why it’s important you always pay off a line of credit on time.
This gives you an opportunity to build a positive credit history. If you keep other accounts in good standing, you’ll have a greater chance at making a positive change to your score. While this may impact your credit score, it’s important to remember that your credit score is impacted by a number of different factors
Not only will this help you secure a greater range of financing at lower costs in the future, but it will also help you when you’re searching for an apartment or new job.
Your credit score has a huge impact on your life. Don’t let it be a bad one. In the short-term, take the right steps to boost your rental or job application. But in the long-term, make building credit your number one goal. It may take a lot of work, but a good credit score pays off.