4 Ways Your Bad Credit Score is Impacting Your Life

4 Ways Your Bad Credit Score is Impacting Your Life

Once you turn 18, there is an imaginary number over your head. This number is in flux, depending on your spending and saving habits. This number qualifies you for or denies you certain major life purchases, such as buying a home. This number is your credit.  

While this may sound a bit dramatic, it’s true. Your credit score follows you around as you decide to pursue certain decisions in your life. While you may not think about your credit on a daily basis, it’s important to pay attention to it. A good credit score can be a boost to your financial health, making big decisions less stressful for you and your family. 

If you’re not ready to buy a house or take out a major loan, you may think your credit isn’t affecting you. Or you may think that good credit is just something that will happen and doesn’t require much work. Unfortunately, both of these statements aren’t true. Keep reading to discover four ways your bad credit score is impacting your life. 

  1. You Can’t Get a Credit Card

A simple and easy way to build credit is to start paying your bills on time. However, if your credit is bad, you’re less likely to get a credit card that you can make payments on to build credit. Plus you will only be able to pay other bills via direct deposit, which isn’t always an option. This can be a frustrating experience, particularly if you are eager to start building your credit. 

If this is you, then you may want to consider a secured credit card. These types of cards require a cash security deposit or initial funds transfer. This means the issuer’s risks are reduced, as the money is already put toward the card’s limit. For example, if you make an initial deposit or transfer of $500 to your account, your secured credit card limit is $500. Having this type of card and paying it on time can help bump up your credit score. 

  1. You Pay More for Insurance

This may be unexpected, but having poor credit will also impact your insurance payments. Whether it’s car, renter, life, or homeowner’s insurance, these payments may increase if you have bad credit. The reasoning for this is based on research. It’s been shown that those with poor credit scores are more likely to file claims with their insurance company. 

If you’re in the market for insurance, these companies may use your credit score to determine your premium. In some cases, it may be more difficult or harder to get a policy in the first place. These insurance companies want to ensure you’ll actually make the payment, let alone overuse or misuse the insurance. These are all unfortunate factors you’ll have to navigate with bad credit. 

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  1. You May Have a Harder Time Getting a New Job

This next point is especially relevant today with The Great Resignation in full swing. As more people decide to leave their current positions and search for better opportunities, there is more job competition. If you are looking for a new job and have bad credit, it may impact you in the application process. 

Some employers will review your credit report and history to ensure the individual is reliable. This report will verify your identity, but it will also show your credit history. This includes any open lines of credit, any outstanding balances, as well as credit available to you. All in all, it shows if you are reliable and dependable. These are traits your new employer will surely want to see with a new employee. 

  1. You Won’t Be Able to Rent an Apartment

Even if buying a house isn’t on your immediate radar, your credit can still affect your living situation. If you moved either permanently or temporarily during the pandemic, you know the challenge of getting a new place. Besides finding an apartment or condo that meets your needs, you’ll also need to think about your credit.

Similar to a new employer, landlords want to see that you are reliable. They want to ensure that you will pay the rent on time. They can make the assumption that if you have poor credit, then you are less likely to pay them each month. Are you competing for the apartment with other individuals or couples? If so, your application may be seen as less worthy if you have a bad credit score.  


Having bad credit can be a damper that makes big life decisions tricky or difficult. It’s likely you will need to prove yourself a little bit more if a low number is associated with your name. That said, building your credit isn’t impossible, and it can be done. Prioritizing your financial health will have huge rewards in the short and long term. 

Remember to be persistent and purposeful with your payments. Each bill you pay on time can make a difference in your score. At the same time, be patient. It won’t happen overnight and that is OK. Keep demonstrating your creditworthiness and reliability, and your efforts will pay off.

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