The great recession may have ended technically, but the impact feels as if it is still rippling through the system today.
Mortgage delinquencies and late payments have barely budged, and credit scores have only recently begun to find a bottom. The rate of unemployment is the worst it’s been in any recovery since the Great Depression.
The economic downturn that began in 2007 and the subsequent job losses that accompanied it were disproportionally hard on one group in particular.
Middle-aged, middle-class American men suffered more job losses on a larger percentage basis than any other group.
One of the reasons for this statistic is the places these workers held in the job market – namely the fact they were in their peak earning years and companies were looking to cut costs anywhere they could.
As a result, American men have suffered a disproportionate hit to their credit scores as well. This hurts not only those men who are affected, but it hurts their families, too.
Most of the men in this highly impacted group were the primary, if not the sole, breadwinners in the household.
But as things start to improve, this group has to focus on getting their credit back on track. Many have either found jobs or have begun their own businesses.
Here are seven reasons these men need to focus on fixing their bad credit now.
1. Bad credit costs you more money
This is especially true when it comes to the interest rate your credit card company charges you. It’s also true if you attempt to get a loan for any major purchase.
Paying a higher interest rate is just money wasted.
2. Bad credit can make you less attractive to potential employers
Even if you currently have a job, consider when the time comes to start looking again.
If the company you’re interested in relies on credit checks, like more than 50 percent of companies do, your bad credit may impact a potential employer’s decision to hire you.
3. Bad credit affects your children
Having bad credit makes it less likely you will qualify for a college loan if you have children that are ready to attend. Chances are any savings you had set aside for college tuition may have been diverted to pay the bills.
Getting a loan may be the only option left to ensure your kids a good education.
4. Bad credit affects your ability to rent or buy a home
Now that housing prices have started to improve, maybe you’re considering selling your home. Well, whether you plan to buy another one or even rent one, a low credit score will come back to bite you.
However, many lenders do cater specifically to people with bad credit.
5. Bad credit can also mean you pay more for your insurance premiums
Most major insurers will review your credit score before giving you a quote and place you in a higher risk category because of it.
6. You may not be able to qualify for a credit card
This can prevent you from being able to rent a car, stay in a hotel or do any number of things that require having a credit card. Not only is this inconvenient, it can potentially damage your job chances.
There are, however, credit cards made just for people with bad credit.
7. You don’t have peace of mind when you have bad credit
Perhaps the best reason for men to fix their bad credit is the simple peace of mind that comes along with knowing you are getting things straight again.
Bad credit is a symptom of a bigger problem – not being financially secure.
By fixing your bad credit, you are regaining your financial freedom, along with that of your family.
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