How Bad Credit Can Impact Your Life

The turbulent economy and tougher lending environment appears to have shut the door on credit opportunities for those with a dubious credit history.

However, in many instances, poor credit doesn't necessarily knock you out of the credit pool. But it does mean you'll need to be well prepared and informed when you go looking for a loan. In any case, you're probably going to get less-desirable terms, and you'll pay a little more than the average consumer because the lender is taking on a greater risk, thanks to your shaky financial record.

Here's a chance to learn how lenders evaluate you and better understand a few of the tools they use to make their choices, such as your credit reports and credit scores; how to deal with lenders so you don't get tricked into losing even more money; and how you can bypass some conventional routes to receiving credit.

Bankrate has selected seven areas where your credit history can have a big impact, explaining how bad credit can affect you and what you can do to make things better.

Some of the guidance provided, as well as the wise use of the credit you might ultimately receive, will create improvements to your history and boost your credit scores from bad to good. That means easier credit at a better price.

Beat the bad credit blues

• Don't let bad credit impact your job
  You may have aced the job interview, but you have one more hurdle: your credit. A few fixes to your history can help your first impression go a long way.



• Don't let bad credit impact your credit card use
  Out of cash? A few restrictive credit card replacements can help you get by in an emergency.



• Don't let bad credit impact your car loan
  It may not be the car that you desired, but it will be the transportation that you need.



• Don't let bad credit impact your insurance
  Better to have some protection than none at all. Rest assured; your credit isn't necessarily the main focus.



• Don't let bad credit impact your rent
  Most likely, you won't be homeless, but be prepared to pay more in certain areas.



• Don't let bad credit impact your mortgage
  A house is a large investment. That's why your credit plays a critical role. You won't be shut out of a house, but your options to pay for it will be limited.



• Don't let bad credit impact your student loan
  Your education is important, and the ability to get a student loan is one area where your credit is less likely to play a critical role.