Bad credit comes in many shapes and sizes. Having bad credit, whether in the form of credit cards, car payments or home mortgages all contribute to a bad credit score. Some things to keep in mind regarding bad credit include the following.
If you own a small business or ever want to own a small business you have to make sure that you have access to credit to help setting up your venture. However if you have bad credit you will experience negative effects and not have access to such funds. Always beware of high interest rates. Any and all credit you acquire will most likely be at a premium. If you already have bad credit, then you will pay a higher interest rate because you will be a risk to the lenders.
Having bad credit also affects access to utility uses such as phone, cable and electricity. Your credit will always get checked when you sign up for these and if you happen to have bad credit then you will likely need a co-signer to help guarantee to the lender that the bills will get paid. Similarly, when you apply for housing landlords will run a credit check to make sure their tenants are reliable. If you have bad credit then this could lead to higher rates or an inability to rent at all.
Dealing with money issues is clearly a stressful reality. However, there are a few different ways to get out of this situation. Work toward catching up on your late payments, pay off your balances and therefore reduce you debt. There is also the option to file bankruptcy. Filing bankruptcy helps to eliminate your bad credit al together.
The next steps in dealing with your bad credit should be to contact a bankruptcy attorney who is familiar with credit resolution. They may be able to negotiate reduced pay-off amounts on your debts, extend repayment periods to reduce individual payments, or, in the worst cases, help you through the process of filing for bankruptcy. Don’t deal with this alone. The Goldbach Law Group is here to help!