It is likely that at some point in your life you have heard about credit history and how important it is that you take care of it.
Seek to have a positive record
It is one of the most used tips by financial experts: “Seek to have a positive record”, “do not risk damaging your credit history”, “a good or bad record makes a difference”, among other phrases. But what do they really mean? And more importantly, are the consequences of a bad record as ugly as they are painted?
It is time to clear the doubts
The answer you should keep in mind is that a bad credit history can harm you in more ways than you think. Not only does it have to do with being denied a loan, which is obvious, because if you are qualified as a bad payer, nobody will want to lend you money. But it goes much further.
A bad credit history can also harm you when buying a home, or even renting it
If you are looking to rent an apartment, today the owners do not risk giving a contract to someone who does not have good financial habits, so, if you are reported in loss at a central risk, they are likely to reject your request.
The same happens when it comes to applying to a job. Believe it or not, some companies take this point into account and verify that the candidate is not reported as delinquent or has a history of murky debts.
On the other hand, the creation of companies could also be something that is difficult for you to have a bad credit history, since it is an activity directly related to income and expenses.
As you can see, fulfilling your financial obligations in order to maintain a positive record is something that will prevent you from facing the situations mentioned above. Do not forget, if you are one of those who remain a good payer and need extra money, applying for a personal loan will not be a problem.