Cause and Effect Essay

Bad Credit 1 The Consequences of Having Bad Credit Andrea Ospina University of Phoenix COMM /105 Introduction to Effective Written Communication Suzanne Green, Ph. D. August 22, 207 Bad Credit 2 The Consequences of Having Bad Credit Having a bad credit is the result of numerous mistakes. Late payments and spending more money than you have can contribute to lower your credit score. When you irresponsibly start getting all the credit cards they offer you, and start swiping them in every store there is, you never image the consequences that this actions will have in your life.

The result of bad credit can be worst then what you think. It can actually deprave you from of a lot of privileges and opportunities in every aspect of your life. The cost of having bad credit is really high, no only your car insurance will go up, since most of the reliable insurance agencies will give you a quote based on your credit score. Getting a loan to get that knew car that you always wanted will be extremely expensive, due to your low credit score your inters rate will be really high making impossible for you to pay it off.

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Interest rates for individuals with bad credit are usually double or triple than they are for a person with good credit. . Since you can not get a new car, you need to fix the one you have, and there is when more problems arise. You have no cash to pay for the repair and not credit cards available. All of the sudden you discover that there are credit card’s companies for those with bad credit. Since you need the money urgently, you will immediately get the credit card without even checking the possible hidden charges that this company will have.

Months, later you receive your statement with numerous charges; a ninety five dollars annual fee, a one time fee of forty eight dollars, and a monthly fee of seven dollars. All of these add to the 21 percent interest rate. These are only one of the many consequences of having bad credit. Bad Credit 3 Tired of the situation, you decide to get another job that will allow you to pay your debts and get out of this mess.

You finally get a call from a very reliable company and the offer is pretty decent, you do great on the interview, but the manager tell you that you have to wait for the results of the back ground check. Besides calling every job to get references, they will check your criminal and driving record, and one last thing your credit report. Individuals with negative items in their credit report are seen as irresponsible; and are considered as not reliable individuals. Getting a mortgage for people with bad credit can be a headache.

The dream of getting the house of your dreams can turn into a total nightmare. Unfortunately, one of the consequences of having a bad credit is that the lender wary about lending money to you, especially when it is for a large amount as a mortgage. Many mortgage lenders want evidence that your history show you to be reliable in re-paying your previous loans, and if you have defaulted in pay money back that you own, or if you have any county court judgments against you, they see the risk of lending you money very high and there fore, they charge an increase interest rate.

Having a bad credit can make your life very difficult especially in this country were your opportunities of making money and having all you want depend of your credit history. Bad credit and also close a lot of doors in the professional field, as more a more companies take your credit history under consideration to hire an individual.

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