Bad Credit History: 10 Ways It Will Get In The Way | Refresh Financial

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10 Ways Your Bad Credit History Will Get In The Way Of Life

(And how credit rebuilding programs can get you on the right track)

road block
The road in front of a consumer with poor credit is littered with obstacles that just aren’t there for people with good credit. It seems that no matter which way you turn, if you have a bad credit history that's haunting you, you’ll come up against a brick wall. Even in areas of your life that you’d never guess would be affected by poor credit are.

The most common roadblocks people with poor credit face are many, and as years go by they will only get worse and affect your life more. Getting in touch with the right credit rebuilding programs sooner, rather than later, will help overcome several of life's obstacles down the line. If these 10 common obstacles are often in your way of moving forward in life, you might need some credit help:

1. Getting a job

Nearly half of all Canadian employers make use of the credit check as part of their hiring process. The idea is that people with good credit are more likely to be responsible, reliable employees and the simple act of a credit check is going to reduce high turnover in the workplace. If you’re suffering from poor credit, you might find it hard to get a new job.

2. Getting a home

People with a bad credit history will not have an easy time trying to get approved for a mortgage. In fact, it’s going to be pretty impossible. With the costs of housing as high as it is in Canada, lending to those with poor credit is just too risky for lenders.

3. Getting an apartment

Some landlords across Canada are using credit checks as a part of the screening process for potential tenants. If you’re one of the applicants with poor credit, your application is likely to be tossed aside.

4. Getting a car

Much like mortgages, car loans are going to very difficult to get approval for and you may have to resort to getting a cosigner for a bad credit car loan. While the amount you would borrow is much less than a mortgage, it’s still risky for a lender to finance your car when your credit history shows you’re not so good at paying back your debts.

5. Getting a new credit card

Getting approval for a credit card of any kind is going to be difficult. If you have bad enough credit, you may not even be approved for a secured credit card. This will seriously hinder your ability to improve your credit score as well as do normal everyday things, like book travel or rental cars and the like.

6. Getting fair interest rates

People with great credit get the best interest rates, no matter what the credit product is. They also hold more negotiating power when it comes to borrowing money. If you have a poor credit history, you’re going to be offered the worst interest rates and borrowing money is going to cost you way more in the long run.

7. Getting a loan

Financial institutions will likely only consider a loan application from you if you have a cosigner with good credit. Otherwise, your chances are very slim.

8. Getting a cell phone contract

Mobile providers in Canada do credit checks when a new customer tries to open up an account with them. If your credit doesn’t pass the test, they will likely require a pretty hefty deposit from you to secure your account. Other utilities in Canada are starting to do the same, as well, and soon you might find it difficult to get internet service and cable, too.

9. Starting your own business

Starting a business is easier with startup capital, but you won’t be in the running for any of that if your credit is in the dumps. You’re also going to have a difficult time dealing with suppliers, as they will likely require payment up front for all of their deliveries until your credit improves.

10. Getting a line of credit

No matter what your line of credit is for, your financial institution will likely require you to secure it in order to get approval. That means putting down a chunk of money up front that acts as a sort of insurance just in case you default on the credit they have extended to you. You won’t be able to unsecure this line of credit until your credit improves.

Credit Rebuilding Programs Can Help

If this list of obstacles is familiar to you, you might consider the credit rebuilding program offered by Refresh Financial. Sign up for our credit building program with no money up front and be well on your way to getting rid of all of the roadblocks in no time. Click here to apply for our credit rebuilding program today.

What other obstacles do you find having poor credit presents? Let us know in the comments!

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