Living Without Credit

The consequences of poor credit.

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Living Without Credit - Consequences of Poor Credit Choices

consequences of poor credit
Living without credit is becoming more and more common for those with a bad credit problem. Learn the consequences of poor credit and see what you can do as a stay at home mom.

Are you deep in debt? Maybe you're living from paycheck to paycheck or you're constantly charging things on your credit cards. If this is the case for your family, it's time for a wake up call.

What would happen if you were living without credit? After all, if you have a bad credit problem it can lead to poor credit, which brings with it many consequences. If you're going down the path of debt, what is going to happen to your kids?

What kind of financial future will they have? Will they simply follow after your own mistakes, getting deep in debt themselves?

After all, when you take out a loan or you use a credit card, you give your word that you'll be paying that money back. However, life happens, you have a tough time making ends meet as a stay at home mom, and before you know it you're missing payments and racking up even more debt.

When you fail to repay creditors, you set yourself up for a very bad credit problem. If you're continually ignoring bills and maxing out cards, it's important to take a look at what living without credit can do to you. If you don't think bad credit is a big deal, here is a look at just a few of the consequences of poor credit.

Consequence #1 - Denial on Loans or Credit Cards
One of the big consequences that you may encounter when you have a bad credit problem is dealing with denial on loans or credit cards. Living without credit can be difficult, especially when you actually need a loan, such as a home mortgage. Not only may you get denied, but you'll have to deal with the embarrassment that comes with denial when you apply for credit.

Consequence #2 - Higher Interest Rates
As a stay at home mom another consequences of living without credit that is good is that you'll end up paying higher interest rates. If you do get new loans, you'll definitely have higher rates because you are viewed as a high risk to the company. In some cases, some creditors may find out that you have missed other payments on debts and they may raise your rates because of this, making it more difficult to reduce the debt you have.

Consequence #3 - Problems Getting Approved When Renting a Home or Apartment
When you go out to rent an apartment, you may not realize that most landlords are going to check out your credit before offering you a lease. In many cases, they are not willing to lease to someone who has a bad credit problem. When you are living without credit and your report shows it, landlords will think that you are less likely to pay them, so they may refuse you as a tenant.

Consequence #4 - Higher Security Deposits on Utilities
Before turning on your utilities for you, most utility companies are going to take a look at your credit as well. This is part of your application process. If you have a history of living without credit that is good, more than likely they'll require you to pay higher security deposits, even if you have been paying utility bills on time in the past.

Consequence #5 - Getting Denied for Insurance or Higher Insurance Rates
Sometimes you may even find that you get denied for insurance coverage when you have poor credit. Of course, not every company will deny you, but if they do decide to give you an insurance policy, they'll probably end up charging you higher rates because you will be considered more of a risk of them. Even if you have never filed a claim, you'll still end up with those higher rates because you've been living without credit that looks good.

Consequence #6 - Problems Getting a Job
You may even find that you have problems getting a job. If you need to stop being a stay at home mom for awhile or your spouse ends up having to find a new job, your bad credit problem may cause a problem.

Many employees, especially those that deal with finances, take a look at your credit score and require that you are living without credit problems. Negative problems on your credit report and a low score may end up costing you the job that you need.

Consequence #7 - Cell Phone Companies Require Huge Deposits or Deny You
Even the cell phone companies are taking a look at your credit these days. If they see that you have a bad credit history, they don't really know if you'll be reliable at paying on your cell phone bill. This means that they may require you to pay a huge deposit. Some companies may even deny you and your only option may be a prepaid plan.

Consequence #8 - Worry and Anxiety
One of the big consequences that will directly affect you and your family when you are living without credit that is good is that it will cause worry and anxiety. You'll be worrying about being denied the use of cell phones or insurance.

When you apply for a job, you'll worry that the employer will see your credit report. As long as you have poor credit, you'll continue to deal with anxiety and worry.

Consequence #9- Setting Your Kids Up for Financial Failure
In reality, one of the worst consequences of a bad credit problem is that you are setting your kids up for financial failure. As a stay at home mom the decisions you make are affecting your children. They watch what you do financially and there is a good chance they will imitate your actions. Do you really want them to end up living with bad credit or would you rather them live without credit problems in the future?


Money Saving Resources

Use the following resources to help you on your path towards becoming debt free.

1. More pages on Stay-a-Stay-at-Home-Mom.com:
  • How to Get Out of Debt
  • Financial Freedom: The True American Dream
  • How to Live Debt Free
  • What the Experts Have to Say About Debt
  • Different Types of Debt
  • How Debt Consolidation Works
  • About Payday Loans
  • Myths About Your Credit Report
  • About Bankruptcy
  • 2. Debt Proof Living:
    I found Mary Hunt when I first started to pay off my own debt. Her resources and support were just what I needed at the time, and they might be of benefit to you as well. Check it out: Debt Proof Living



    3. Rayven Recommends these books on Amazon:

    Are you living without credit, either with intention or due to poor credit?

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