poor credit woman with computer

The Side Effects Of Poor Credit And How To Get Beyond It

When most people think of the side effects of poor credit, they think of how difficult it can be to borrow money. We won't lie. This is the most significant impact of a low credit score. However, it is not the only consequence. Having poor credit can impact everything about your life, including employment.

Therefore, you must learn how to get beyond poor credit. The sooner you can repair your financial situation, the better your life will be. At Tennessee Title Loans, Inc., we regularly encounter people with poor credit scores. They have told us just how difficult their life has become.

While we cannot repair credit scores with any of our services, we can help those struggling to borrow cash through our convenient loans. Before discussing that, we want to walk you through some of the significant side effects of poor credit and how you can change your life and finally move beyond them.

How To Recover From The Effects Of Poor Credit

The Side Effects Of Poor Credit

Let's start with the impact of poor credit on your life. Any credit score below 579 is considered 'poor.' Although, getting above 579 won't magically deal with the side effects of poor credit. When you reach the 740 mark, your score has a lower impact on your life.

We will give you some tips for boosting your credit score shortly. We wanted to point this out so you know that even when you are considered to have a 'fair' credit score, you may still notice a few issues with gaining credit, employment, etc.

1. Harder To Get Credit

This is the side effect most people know about. Most lenders will only lend you cash if you have good credit. It makes sense. A poor credit score indicates that you need help with money. It suggests that you failed to make payments on time.

The lender will assume that because you have been unable to make payments on time to other companies, you will probably fail to pay them on time. They don't want to take the risk. It isn't just loans that you need to worry about, either.

You will need help to get anything credit-related. This means no credit cards, no cellphone contracts, and no pay monthly deals. On the off-chance, a traditional bank can lend you cash, and borrowing can be prohibitively expensive.

2. Harder To Rent

It isn't impossible to rent with poor credit, but it is much more challenging. Many landlords are now demanding a minimum credit score of 700. When finding a tenancy, anything below this and your work is cut out for you.

You'll be asked to pay a much higher security deposit if you see something with a low credit score. This gives protection to the landlord. It could be better for the tenant, though.

concerned woman with poor credit

3. Difficult To Get Utilities

It isn't impossible to get some utilities. It is just much harder. Those with poor credit scores have struggled to get good deals on electricity and water. Some utility providers have even asked for 'deposits' to be paid before the service gets switched on.

The only utility where you may see rejection after rejection is the internet. It's very frustrating because the internet is vital in our daily lives, especially since many businesses are now transitioning to a 'work from home' model.

Some ISPs deal with poor credit but often demand that you pay them several months upfront. If you have good credit, this can be easy. After all, you are already dealing with a difficult financial situation.

4. Harder To Get Certain Jobs

Some employers will carry out a credit check on potential employees. This typically happens in jobs where large amounts of cash are handled, or security is essential. So, if you have a poor credit score, you may struggle to gain employment in specific industries.

Moving Beyond Poor Credit

Improving a poor credit score can take time — several years. Negative marks, e.g., missed payments, stay on your credit report for seven years. They impact you less over time, but your score will be affected as long as they are there.

So, you are looking at a minimum of 7 years before you can get a 'great' score. You could see significant improvements within 6-12 months with some effort. These tips will help.

1. Regularly Check Your Credit Score

You need to get into the habit of regularly checking your credit score. While seeing your credit score improve can be motivational, it also allows you to check for any errors. It isn't uncommon for creditors to accidentally send the wrong information to the credit reporting agencies. This means payments may be marked as 'missed' even if paid. Sometimes, the address may need to be corrected. If you spot any errors, then get them fixed.

2. Make A Budget

You will be improving your credit score if you learn how to budget. This will not only help you improve your credit score in the short term, but it can lead to long-term financial health.

Make a note of all the bills that you need to pay each month. Estimate how much you will spend on food, clothing, etc. Finally, note down your income.

Your income needs to be greater than your outgoings. If it isn't, then you will never improve your credit score. You'll keep missing bills. This means you will need to look into ways to increase your income or trim back your expenses.

3. Reach Out To Your Creditors

Creditors want to be paid. However, they understand that people often run into financial issues. They would instead pay something than nothing.

Some people have had success giving their creditors a call. They have been able to negotiate a payment break (this allows other debts to be paid off quicker) or lower monthly payments. Some creditors will say no, but it's still worth asking.

4. Start Paying Down Your Debt

Try to pay off your debt as quickly as possible. If you have credit cards, pay more than the minimum payment. If you have loans, pay as much toward them each month as possible. The goal is to get rid of your debts quickly.

Not only will this impact your credit score, but it will also reduce the interest you pay. Here at Tennessee Title Loans, Inc., we recommend the 'snowball' method. You aim to pay off your smaller debts as quickly as possible.

So, make more than the minimum monthly payment for those small debts. You should have them paid off in a few months. Each time a small debt is paid off, you move on to the next smallest debt.

woman with title loan cash

Why A Bad Credit Title Loan May Be An Option In The Short-Term

Borrowing money can be challenging if you have a poor credit score. You may have no options if you need money to cover a financial emergency. Thankfully, you do. One option is a bad credit title loan from Tennessee Title Loans, Inc.

With a title loan, you can borrow cash against the value of your vehicle. If approved, we can lend you between $300 and $2,500. The process is simple too. We only ask that you have the following requirements:

  • A lien-free title to your vehicle
  • Driver’s license or state-issued ID
  • Your vehicle for inspection
  • Proof of income

How Does The Bad Credit Title Loan Process Work?

We aim to make life as easy as possible for you. The process for inquiring about a bad credit title loan is just a few steps:

  1. Fill out our short online inquiry form.
  2. Wait for us to give you a call.
  3. Meet us at the location of your choosing. Bring your vehicle.
  4. We will inspect your vehicle and your documents. This can take as little as 30 minutes.
  5. We decide whether we can lend to you.
  6. If your title loan is approved, the cash will be available in your bank account either the same day or the following day.

Poor Credit? Need To Borrow Cash? Consider a Title Loan

The side effects of poor credit can make it difficult to borrow cash, rent, and even gain employment. However, you can improve your financial health by learning how to budget, negotiating with creditors, and paying down debt.

Unfortunately, this isn't helpful if you need emergency cash now. Thankfully, there are still options. A bad credit title loan from Tennessee Title Loans, Inc. may allow you to borrow up to $2,500 against the value of your vehicle. If approved, you could receive cash either today or tomorrow. Fill in our quick online form to get started!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Louis Tully

Louis Tully is a full-time finance writer offering financial expertise to everyday consumers. He understands the core values of finance and used his writing talents to share his own experiences with money to his readers. His articles teach how financial failures can easily become successes by making new habits and creating realistic goals.