Countless people are stuck living with bad credit, and this is not something many people can ignore. If you’re maxing out credit cards and spending money you don’t have, your credit score is bound to suffer. The lower your credit score, the worse off you are in the long run. Let’s explore a few of the negative effects of a bad credit loan.
High Interest Rates
When you have poor credit, lenders are likely to question your financial prospects. They’ll still accept your application, in some cases, for a credit card or a personal loan, but you’ll wind up with high interest rates.
With a high interest rate, you’ll ultimately pay more per month to use the card or to have a loan under your name.
Denied Approval
Then, of course, there are those lenders and credit companies who will outright deny your application for a credit card or personal loan. They look upon poor credit as a risk. That risk comes in the form of nonpayment. They’re worried that, by lending you the money, you won’t repay their investment in you.
Debt Collectors
No one enjoys a phone call from a debt collector. It’s an uncomfortable, confusing, and often stressful situation. Even worse, most debt collectors are relentless. They want their money, and they want it as soon as possible.
If you owe money and have poor credit, debt collectors will be on your case before you know it.
You have options, though. A bad credit loan is available to those with a poor credit score. It can help you consolidate your monthly debts and create a repayment plan—all the while, you’ll be boosting your credit score along the way.
For a bad credit loan, contact Wise Loan at 800-516-7840!
The recommendations contained in this article are designed for informational purposes only. Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.
