The words “bad credit” can seem like two of the worst in the English language. It’s easy to torpedo your credit through unwise financial decisions. It often happens when you’re young and not cognizant of these things. Other individuals must endure credit hits through no fault of their own if they borrow money or default on purchases they simply can’t afford to pay for.

While having bad credit might seem like the end of the world, you can usually get your all-important credit score back into shape through careful financial conduct. There are also entities willing to work with you even if your score isn’t so great.  

For instance, you can find a bad credit car dealership, Utah residents, if you need a vehicle and your credit score isn’t the most respectable. You can get credit cards from certain companies even with bad credit, though they tend to have more stringent borrowing limits than others.

In this article, we’ll talk about undesired consequences of having bad credit. These situations aren’t ideal, but they’re never cause for despair. If you’re in this position, you can work your way back to financial respectability through tenacity and careful budgeting.

You Can’t Usually Get Business Loans

Whether you like it or not, your credit score says a lot about you. Your financial history is like a road map of where you have been in your life from a monetary standpoint. If you have a credit score of 500, you can’t do some of the things you could if that number was 800. For example, you may not be able to get a business loan.

If you have a salaried job working for an established company, then your credit score is probably not going to make much of a difference. Provided you’re a reliable worker and you do what the company requires, your boss won’t care about your finances at all.

If you’re trying to get a company off the ground, though, that is probably going to be exceedingly difficult if you have bad credit. Many individuals have ideas for companies. If you’re ambitious enough, you might try to make that vision a reality.

If you don’t have the necessary startup capital, though, most credible lending entities like credit unions or banks won’t give you the time of day. That might sound harsh, but if a lending entity looks at your credit history and sees you’re a high-risk prospect, they’ll probably turn you down, even if you have a good idea and a credible business plan.

You Can’t Often Get Home Improvement Loans

The same is true for home improvement loans. If you are a homeowner, maybe you want to borrow $15K from a bank to install a new fence in the backyard or to do a total tear off and replacement of your roof. This is the sort of loan that you should be able to get relatively easily if you have a solid credit score.

If your credit score is only middling or if it’s dismal, though, then you will probably get the same treatment that you would if you wanted a loan to start a business or for some other purpose. The individuals who are in charge of approving or denying loans at banks or credit unions will get in trouble with their bosses if they grant loans to individuals who seem like higher-risk prospects. That is unfortunate but undeniable.  

You Will Likely Be Limited Regarding What Vehicles You Can Get

You may need a vehicle to get to and from your job. You can use that same car to get to and from the grocery store and to run similar errands.

If you don’t have the cash in hand to pay for a vehicle all at once, then getting a car loan from a credit union or bank is likely your best option. Failing that, you may need to finance a car.

Again, that credit score can be a detriment, especially if you want a more high-end vehicle. Getting a brand-new car is likely going to be out of the question if you don’t have much for a down payment and you have a less-than-stellar credit score. That combination will limit your options significantly.

As we mentioned earlier, you can usually find used car lots that will have at least a few options for you if you’re in this predicament. They will be able to work with you to get you on the road in a vehicle, though it likely won’t be anywhere close to new or in the greatest condition.

Sometimes, though, you have to compromise and be realistic. Having an old junker that gets you to work may still seem like a better prospect versus having to take public transportation.

You Will Only Be Eligible for Certain Credit Cards

Much like what cars are available to you, individuals with less-than-great credit can expect to only be eligible for certain credit cards. Applying for an Amex Platinum card isn’t going to lead to success if you have a lower credit score. However, you needn’t despair if you’re intent on getting a credit card with bad credit.

There are some card companies that will still give you a card, though it will likely have a strict borrowing limit and various other limitations connected to it. Still, it’s better than nothing. You can use these credit cards to help rebuild your credit slowly but surely.

Your Housing Options May Be Limited

Your housing options will certainly be impacted if you have bad credit. If you’re looking for an apartment, for instance, it will be a lot tougher if you have a rocky credit history.

Your best bet will be to either find a permissive landlord who’s willing to work with you or to seek an apartment with someone who has better credit than you. If you’re not the best prospect, but you find a potential roommate who has excellent credit, the two of you combined will seem like less of a risk.