Consumer use of credit has steadily increased over the past decade. Unfortunately, incomes have not kept pace with these growing levels of credit related spending. This trend has resulted in record levels of personal bankruptcies, as well as high levels of late payments, skipped payments and even foreclosures. All of these factors have worked together to produce one very negative effect: damaged credit. Tens of thousands of people across the country are now being forced to deal with the consequences.

Most people simply do not realize how important a solid credit rating can be until they no longer have it. This realization is typically brought about by ramifications that begin to appear in an individual’s life. Listed below are a few of these negative results.

• Credit or lending denial. A poor credit rating significantly reduces the chance that an individual will be approved for a credit card or loan. This can affect mortgages, car loans, personal loans or lines of credit. 
• High rates. If an individual with damaged credit is approved for a card or loan, it is generally at a very high rate of interest. Lenders view these individuals as “high risk” clients and therefore they charge higher interest to offset that risk. Over the course of a loan this can translate into hundreds or thousands of dollars. 
• Insurance denial. Some life insurance companies will turn down individual’s with bad credit.
  Increased fees and charges. Lenders often tack on additional fees and charges to bad credit borrowers.
• Difficulty obtaining a job. Some employers will view a copy of an applicant’s credit report as part of the screening process. A bad rating would seriously diminish a candidate’s chance for receiving the position.
• Housing problems. Individuals who have submitted a rental or leasing application for an apartment, condo, or house will often be subjected to a credit search. Negative results often lead to a rejection of the application.
• Anxiety. Many people who have poor credit are scared of all the potentially harmful consequences. Additionally, there is often a sense of deep guilt and remorse. 

The consequences of bad credit can be quite significant. They often affect an individual’s financial life, as well as, employment and housing opportunities. If your credit habits are threatening to damage your report, then the time to act is now! Do not wait until these repercussions begin to appear before addressing the issue.