So, you have bad credit and you’ve noticed that it’s a rock that is nearly impossible to get out from underneath. It feels like there are forces beyond your control that are holding you in place so that once you have joined the bad credit ranks, like millions of Americans, it is almost impossible leave. Well, if you have ever felt this way, you are not wrong. Having bad credit is unfair. Don’t take this the wrong way, as we can’t discount personal responsibility, but the cards are stacked against you when your credit takes a nose dive.
There are lots of reasons you may have tarnished your credit. You may have made some poor spending decisions and could not keep up with repayment obligations. You may have suffered a misfortune or hardship such as job loss, illness, injury or a combination of these factors. You may have had your identity stolen and are doing everything you can to put the pieces of your credit back together again. Sadly, regardless of the reason, you are treated the same. Let’s take a look closer look at the inequities that you are faced with once you find yourself looking for that credit life preserver.
Everything is More Expensive
Most of the time when you are late on bills it’s because you are struggling to pay them. The unfortunate irony is that when you have bad credit, everything is more expensive. Your car insurance rates can go up. Often times you are required to make a deposit on something as simple as your utility bills. If you are fortunate enough to get a loan for a car or a house, your payments could be as much as double what someone with good credit would pay due to the high interest rates you are charged. It is the literal and figurative definition of “being kicked when you are down”.
Getting Credit of any Kind Seems Nearly Impossible
I am sure everyone with bad credit can relate to this…getting a loan, especially a non-predatory loan with a reasonable interest rate, is difficult if not impossible. If credit was a ladder, for you the ladder would be missing the first 12 rungs. It’s incredibly difficult to fix your credit if nobody will extend you credit.
Even the Smallest Mistake puts you Immediately in the Penalty Box
So now your back on track, paying your bills on time and feeling like things are going in your direction. You’re living from paycheck to paycheck and you have every cent budgeted towards just staying afloat…but you are making it work. Bang!!! Your car needs a new transmission, or you have an unexpected trip to the emergency room. You may be forced to pay a bill late just to keep your job and life on track. Just like that, any small gains you have made in your credit have now been erased.
Where Do We Go From Here?
So now that we have concluded that having bad credit is unfair…let’s talk about what we can do about it. You can start by coming to the realization that practicing good credit habits is a way of life, not simply a temporary state. It may take many years to bring your credit out of the doldrums, but it absolutely can be done. Bad credit is painful, expensive and unforgiving. Let’s learn from our mistakes and remember how difficult bad credit can make your life…and use it as a motivating force.