Top 3 Negative Factors On How Bad Credit Affects Your Daily Life
Weekly Income Garnished
Levies - This is where the bank levies and takes money out of your bank account without notice. Depending on how much money you owe, this could happen for years. This could happen from any creditor that has a judgment against you, or if you owe any tax liens.
Liens - Liens can be placed in people's names for specific locations in the county records. Whenever you try to sell or pass title to someone else through houses or vehicles, liens can be placed on the items, whereupon these liens need to be paid to pass clear title.
Weekly Income Garnished - Imagine having a credit secure position to garnish up to 25% of your weekly paycheck. Depending on how much you owe, this money could be garnished for months or years from your paycheck. When you are hired for a job, remember the IRS receives your tax information.
What makes matters worse with the above is, not only will it feel like they are taking money out of your bank accounts, properties, or paychecks forever, but don't forget all the penalties, high interest, and very high attorney's fees that keep accruing along the way for every letter sent, call made, and other items in the collection process.
Note: The bank levies bank accounts to which the same SS# or Tax ID is attached.
OTHER NEGATIVE FACTORS ON HOW BAD CREDIT AFFECTS YOUR DAILY LIFE:
-It's very hard to apply for a home loan with bad credit
-Bad credit limit's your finance options, often giving you a loan with much higher interest rates
-You often won't get approved for a credit card
-Credit cards you are approved for will likely come with a very high interest rate
-Your auto insurance may be denied, or it may be a higher rate
-You may not be able to get an auto loan at all, forcing you to drive cars that often need repairs
-You may not be able to get a bank account
-You may not be able to open up investment accounts
-You may be denied a job when a credit check is done
-You may be forced to only get high-interest department store cards
-You may not be able to increase your credit line
-You may not qualify for a home equity line of credit in the future
-You may be forced to pre-pay for minutes on a cell phone instead of a contract
-You may not be able to get cable tv or have to pay a very large deposit upfront
-You may have to pay a deposit upfront with your local utility or electric company
-You may not be able to get a college loan or start a career
Note: Removed items off of a credit report may still show up on county public records where a lender could do a search to find them before loan approval. Removing the items does not remove you from the obligation of the debt owed.
State Tax Liens
Federal Tax Liens
Sally Mae and DOE Student Loans-(Negotiate before credit repair, 42.84% interest in default)
Child support payments
BEFORE YOU CAN GET A HOME LOAN:
Back Child Support - Must be current or being repaid through wage-garnishment
Bad Checks - Must be paid in full before Pre-Approval for those on the credit report