Are you one millions of Americans living with bad credit? If so, you’ve probably felt the frustration of trying to go about your life with limited choices. It really is a tough position to be in, especially if you have a family.  What’s most frustrating is for most people, having bad credit is a result of financial difficulty or challenging life circumstances. True, some people are irresponsible and cannot be trusted to pay anyone back. There are those who have a good source of income but just choose not to pay their bills.  This is a small minority of those who have bad credit.

The majority of folks with bad credit have had a rough time. Either they don’t make that much money and end up making lousy financial decisions out of stress and desperation or they’ve gone through a divorce, lost a job or have been too sick or disabled to work.

To add insult to injury, once you have bad credit, you can expect to pay MORE for most everything. Here is a list of what you can expect when you have bad credit…

The Cost of Having Bad Credit

1) Higher car insurance premiums –assuming you get approved.

2.) Extremely expensive home loans, car loans & personal loans — if and when you can actually qualify.  If you do qualify you will likely pay a lot in interest and/or may be required to pay a large down payment.

3) Inability to open utility accounts without paying a deposit, this include gas, electric, and phone. In some cases they will out right turn you down. Thankfully, some companies no longer do credit checks to open new accounts. (Phone Power digital phone service is a good example. )

4) If you have bad credit, you probably won’t qualify for a regular cell phone account. This means you are left with the option of choosing a prepaid cell plan.  These plans are known to be more expensive than regular cell phone accounts.

5) Difficulty in opening a bank account, especially if you have been reported to ChexSystems.

6)Possibility of being turned down for a job.  Yes, a lot of employers check credit before making hiring decisions. This is especially true for any jobs requiring financial management and fiscal responsibility. (i.e. insurance agents, accountants, bookkeepers, attorneys, and more)

7) Limited opportunities to start a business. Qualifying for a business loan with bad personal credit is extremely difficult. Also, many franchises will do a credit check before accepting new franchisees.

8)  Difficulty qualifying for apartment rentals and even private housing rentals. Most decent apartment property managed companies are very strict with their credit guidelines.  Private landlords may be more lenient, but be prepared to shop around with your credit report on hand.  The process of finding housing when you have bad credit can be extremely frustrating.

In Conclusion -  Focus on Improving your Credit

Most of the providers featured on this site cater to customers with bad credit.  At least be aware that while you will pay more, you do have choices.  Take some time and do something about your credit. This is the only way to really change your situation.