A powerful number that isn’t your social security number determines how you’re viewed and what you get in life. Are you stumped as to what that number is? The dangerous digit we’re talking about is your credit score. It can fluctuate weekly, and can be the difference between being able to get a car or a student loan, or having to walk to work or miss out on university.
Your payment history and how early or late you pay can cause your score to fluctuate immensely. The moment you get your first bill or credit card is the moment your credit history starts. The shorter the amount of time you’ve been building your credit, the poorer your credit history rating will be. This will impact your score until you’ve built a few years’ worth of credit.
It seems that it’s impossible to begin with a decent credit score, but as long as you pay off your bills and make an effort to eliminate your debts and find a debt solution in Australia, your score can skyrocket. Unfortunately, it’s not always as simple as this. There are many surprising things that can turn up on a credit report, and it can harm you in ways you didn’t imagine.
Unhealthy Eating Habits or Lifestyle
The healthiest food can be the most expensive, and when your bank account is depleted due to debt, you run the risk of reaching for inexpensive food that isn’t the healthiest for you. Bad credit can also keep you from receiving the medical attention you need and getting the medications your body needs, due to lack of insurance.
Higher Vehicle Insurance
A vehicle is a staple item in any household, especially those who have to drive to work or bring the kids to school. A low credit score will still allow you to get the proper vehicle insurance, but unfortunately, you’ll be paying an arm and a leg to do so every month. In some areas, you may not even be able to get a car at all without a co-signer that has a great credit score. It can be hard to get someone to sign for you and trust that you’ll make payments when their name could end up with a scuff mark on it.
Higher Interest Rates
Credit can pose many ‘catch 22’ situations. These are situations that you can’t get out of without another force helping you. In order for this other force to help you, you have to already be in good standing. For credit cards, it can be hard to show that you’re worthy without a good credit score. Credit cards are supposed to help you build that good credit score, but you need one for many in return.
This can be frustrating, but there are only a few credit card providers that approve lower credit scores. These companies give higher interest rates to motivate you to pay on time while receiving a higher reward for their risk. It’s inevitable to have a poor credit history as you’re building, but make sure your payments are on time and you’re actively making an effort to reduce your debt, even if you’re still in a tremendous amount of it. Every effort matters in deciding your score.