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Question What happens when your credit is bad?

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Cameron

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So I always understood with low credit, you have less opportunities to take out loans and get other such help. What else happens if your credit score dips down too low? Lets say it goes down as low as it can go. Is there any penalties or issues that can come from that?
 

Carol

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It essentially means you can't apply for loans or other financial help. Low credit means that you're not capable of paying debts back in a timely manner. Once you build it up, it means more options open up to you.
 

Charley

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So I always understood with low credit, you have less opportunities to take out loans and get other such help. What else happens if your credit score dips down too low? Lets say it goes down as low as it can go. Is there any penalties or issues that can come from that?
That is a good question. Initially, all you would suffer is not getting loans form other financial institutions. But currently, in many countries worldwide, you need a credit clearance when looking for a job. Especially government jobs.
 

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