a poor credit score affects consumers in a lot of ways
NEW YORK (PRWEB) June 09, 2018
A lot of people are still clueless how their credit score affects their finances that is why National Debt Relief aims to give more information about it. The article titled “What Does It Mean To Have A Low Credit Score?” released June 6, 2018, shares some valuable insight on how a low credit score affects their finances.
The article starts off by explaining how people with a bad credit score are usually looked down on by society. They are branded and profiled as someone who did not give much attention to their payment obligations. However, there are times when reasons for a low score is out of people’s hands. It can be because of medical bills or even job loss.
The article shares that a poor credit score affects consumers in a lot of ways. There are a number of negative effects people experience. One is having a hard time qualifying for a mortgage loan or any other type of loan they need. If ever they are approved, there is a big chance that they will be assessed a high-interest rate on the loan.
The article explains that as consumers are given high-interest rates on a loan, it follows that their monthly payment would swell up. This is because the interest rate will significantly increase their payments. As they pay the principal amount, their interest payment could be just as big or even bigger than their principal payment.
The article also shares the type of information which can affect a person’s ability to qualify for a mortgage loan. One of the first things would be their payment history especially if they had a previous mortgage. Late payments would have a negative effect on their loan application. People who have any judgments or liens filed against them might be required to pay them off before the can be approved for a mortgage.
To read the full article, click https://www.nationaldebtrelief.com/meaning-low-credit-score/