If you suffer from bad credit, you may actually wonder what the issue is and whether it is going to have any real or notable impact on you. Some people are quick to ask is bad credit a problem because they don’t understand the way the modern world works and how important credit is to having all of the things that you are looking for in life.

Here are some of the key issues in life that can be affected by having a bad credit rating:

• Car Insurance
• Mortgages
• Credit cards
• Car loans
• Mobile phones
• Getting a job

It is obvious that car insurance is very important, in fact, it is an offence to drive without car insurance. This means that you need to have it in place but you will find that car insurance companies will regularly review your credit history before issuing insurance cover. Having a bad credit rating can impact on your ability to obtain car insurance or it could see you paying a higher premium.

Given the state of the property market in the United Kingdom, it is vital that people have as much help and support in obtaining a mortgage to buy a home. However, if you suffer from bad credit, you will find that you are actually harming your chances of obtaining a mortgage. Lenders will look at people who suffer from bad credit and think that they are not a viable client in the current economic climate, and this could cause serious issues and problems for people looking to get on the property ladder.

Do you need a credit card?

There is also a lot to be said for having the option of having a credit card in the modern climate. If you have a good credit score, you can expect to obtain a credit card with interest rates that are around 10% and 19%. If your credit score is bad, you can expect to pay upwards of 22% for your credit. This means that even if you bought the same items at the same price as someone with a better credit rating, you would end up paying more if you paid back the purchase over a number of months. Again, if you suffer from poor credit, you’ll be more likely to be denied a credit card in the first place, so that will cause you problems and difficulties in life.

All of these issues can cause problems, so it makes sense to look towards improving your credit score. Taking out a guarantor loan is a very sensible way to wrestle control of your finances and move towards a brighter financial future.