While good credit scores give borrowers access to low interest rates, the best credit cards, and better auto loans, bad credit scores can make their lives harder in several ways. A low score can keep a person from finding a loan, and it can even prevent them from retiring on time. Raising a credit score isn\'t about luck, but hard work—and it can only be done after learning how these scores affect one\'s everyday life. Here, we\'ll list a few major disadvantages of a low credit score.

Being Too Risky for Lenders

Mainstream lenders have extremely high qualification standards, which means those with poor credit may not be able to get conventional credit cards and loans. Before turning to payday loans, title loans, and pawn shops, consider getting an auto loan through Consumer Portfolio Services. They\'ve been helping borrowers with bad credit get the loans they need for many years.

Paying More Overall

Not only does a high score open the doors at reputable lending institutions, but it also helps borrowers get more favorable interest rates. According to the experts, consumers with scores above 720 get better APRs on auto loans. With a lower interest rate, a borrower will pay less over the loan term.

Higher Insurance Premiums

Most states allow insurers to use credit ratings as a risk assessment factor, which means those with lower scores may pay more for coverage. A declining credit score won\'t automatically increase one\'s premium, but it may prevent them from getting a lower rate.

Losing Job Opportunities

Good credit and spending habits may even improve a person\'s career prospects. In most areas, employers, especially those in the finance sector, can pull applicants\' credit reports during the interview, reassignment, and promotion processes. An employer won\'t see the applicant\'s exact score, but they will be able to access certain information.

Difficulty When Renting an Apartment or Home

A score above 620 is typically the minimum needed to qualify for a home or apartment rental. While some property managers and landlords have stricter requirements, those with scores above 700 are generally considered safe. When a person has poor credit, they may have to get a cosigner or pay a larger security deposit.

Improvement for a Better Future

While it may seem impossible, those with low credit can improve their scores. Bankruptcies drop off the record after ten years, and most other blemishes disappear after seven years. If a person doesn\'t accrue more debt and pays their bills on time, they can lower their debt ratio and qualify for better loan terms in the future. Bad-credit borrowers who need auto loans can turn to Consumer Portfolio Services for help, advice, and service.