Surprising Areas Affected by Credit Card Debt

The effects of credit card debt and bad credit

Think bad credit only affects the ability to get a credit card? Think again. A few other things to you need to know when your credit score sinks:

1. Difficulty finding someplace to live

I don't mean just buying a home -- although with bad credit, that's near impossible. I mean renting. Landlords often check a renter's credit to see if bills get paid on time -- the logic being that if you don't do that, you won't pay your rent, either.

2. High insurance premiums

Studies show that low credit scores and high credit card debt links closely to higher insurance claims. For that reason, many insurance companies check credit scores before issuing insurance and charge accordingly.

3. Difficulty getting a cell phone

Yup, cell phone companies check credit, too. You see the point -- all of these things require monthly payments, so a history of not paying off credit card debt, leads to the conclusion you won't be reliable paying them, either.

4. Difficulty finding employment

Believe it or not, potential employers can check credit records and deny employment based on a poor score. This is especially true of jobs in finance or security -- anything that requires reliability.

5. Higher interest rates

Applying for a bank loan or another credit card? Those companies definitely take a look at your previous credit card debt. If they choose to take a risk, in spite of a low credit score, they expect compensation -- and that means higher interest rates.

Bad credit affects your life in numerous ways, but these are five of the more surprising ones. Do yourself a favor: keep your credit card debt in check before facing any of these problems.