For better or for worse, much of modern American life takes place thanks to credit. It’s how millions of people go on memorable trips and vacations. It’s how young families put down roots, in the form of mortgage loans for their new dream-house. It’s how people go to college, with the help of student loans.
Any sum of money which is lent to you in the expectation that it will be paid back is credit, and we need it many times in our lives in order to get to where we want to go, and do what we want to do. This is why a bad credit report can literally bring all your dreams crashing down, because if no one lends you money when you need it, you’re on your own.
A bad credit report can ruin your life in so many ways. If you’ve got a bad credit report, and you need a credit card in order to get by, you’re going to be refused every time you apply for a new credit card. If you do finally get one, it’s going to be on terms so severe that you might not even think it’s worth it – interest rates are sky-high these days, and for every dollar you borrow you could end up paying so much more for it that you’re in even more trouble than when you started.
A bad credit report could also sink your hopes for an affordable mortgage loan, and without that mortgage loan you could end up living in a less desirable home, and a less desirable – maybe even crime-ridden – neighborhood. Instead of putting your kids to sleep to the sound of birds chirping, it could be to gun fire. As extreme as that might sound, the truth is, a bad credit report will have a seriously negative impact on your request for a mortgage loan. With no loan, or a measly one, you’re going to have to live where you can.
While a bad credit report can ruin your life, the good news is that it doesn’t have to ruin your life forever. There are organizations out there devoted to helping people clean up their credit reports so that they can start receiving better terms on the loans they need to make their dreams come true.