4. A poor credit score affects a lot
Your credit score can harm you a lot. If credit card balances aren’t paid, your credit score will reduce and you may see an unanticipated rate increase on your insurance bill. Insurance companies that actually check credit scores when calculating premiums may assume that if you aren’t able to pay your bills, you might be an irresponsible person and this translates to a higher risk.
Having a poor credit score can be the root cause of other problems. For example, some employers run credit checks on possible employees and may not hire you if your score is way too low. Your credit score is also crucial when purchasing or refinancing a home because it will actually determine the interest rate on your mortgage and whether you’re eligible or not for a mortgage in the first place.
