Can You live with a bad Credit Score?
There are plenty of lenders and other companies that make a huge deal out of helping you to improve your credit score. But, for many people there’s just not a lot of reason to go out of their way to improve their credit score. If you don’t plan on getting a new loan in the near future, then it might be ok to not actively work on improving your credit score.
Of course, there are several different things that your credit score is used for besides getting a loan. Many employers have started to use these scores as part of the background check process for job applicants. While the practice is being made illegal in some states, it is next to impossible to qualify for a job in the finance industry with a credit report that shows financial problems. If you work in this sector, you will want to take steps to improve your credit score whenever possible. If you’re in a different field, however, this might not be at all important to your job prospects.
A bad credit score can also hurt your chances of saving money on your car insurance. For several years, car insurance companies have used credit scores as a way of determining who is at higher risk for being in an accident. Again, this practice is being outlawed in some states, and most states don’t allow auto insurance companies to raise rates for this reason alone. Therefore, if you’re not shopping around for auto insurance you’ll probably be OK with a bad credit score.
If you have a bad score because you’re struggling with your debts, then you might want to consider taking steps to get your finances in order rather than focusing on your credit score. Paying off your debt is usually a good way to lower your monthly expenses and improve your credit score at the same time. If you need help with this goal, consider applying for debt consolidation. This will enable you to pay off all of your existing debts and replace them with a loan with a low monthly payment that you can easily fit into your budget.