How Much Does Bad Credit Cost?

By: Mario Churchill

A man who had been unemployed for two years and had worked as a contractor for three years finally was offered a position in the Department of Defense. The salary offer was supposedly $12,000 more than what he is earning as a contractor plus the stability that the job promised. After some bad incidents in his life such as bankruptcy and divorce to his wife, he found hope to start a new life with that offer.

He is Mr. Becraft and he had shared his misfortune caused by bad credit name.

Mr. Becraft grabbed the offering so he underwent some background check for him to be employed. However, after he was found to have a history of financial troubles, he was rejected to the job. The reason was he could trade the secret of the nation in exchange of the amount that will set him free from that financial trouble.

It was indeed unfair for Mr. Becraft because his skills could prove that he was able to the job. Only that his financial history wasn't favorable or him. And this is just one of the myriad stories of people who lost the job, was not hired even if in all other matters they qualified, or was denied of promotion, again because of bad credit name.

The credit check is not only true to government employers but to any other company workers as well. Employers scrutinize credit histories in order to decide whether he will hire, keep or promote an employee. Yes, bad credit name can cost you your job...and your future!

So how do you get rid of having a bad credit name? Certainly, the answer is simple: clear your account balance and pay your dues on time.

According to surveys, unsettled credits especially on unpaid credit card balance can leave a mark on your credit history. You need a good credit name when applying for loans and even for jobs.

Imagine your life when you stumble in an emergency and all you can depend on is an emergency loan which subsequently was denied because of a past financial liability? Especially if the financial trouble all started out from a little amount which hiked because you were not able to settle it down, it would certainly be disheartening.

And who should be blamed for this? You. And how do you get rid of these misfortunes with your credit cards? Here are some things to ponder on: You should know that your credit card should give you convenience in procuring goods or paying for services. It should not be used as a means of luxury or expansion of your spending capacity. At the end of the month, you will have to pay for all the purchases you made, so be a wise shopper. Stick to your budget as much as possible so that you are limited to your income capability. In this manner, you avoid unnecessary charges on your account plus your name is cleared in terms of credit credibility.

It is not wise to have a bad credit name if you want to improve yourself in terms of employment. To prove yourself worth the responsibilities, start with clearing your accounts.

Make sure that you live within your budget and you will be free from bad credit.

Credit is not at all bad, only if you can settle them promptly.

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