Financial health should be a primary concern of every individual.
Some important transactions that involve money in an individual's life would require a good credit rating or good credit standing.
Some companies are very strict when it comes to having bad credit status of an individual.
For example, in bank transactions, some banks deny loans of individuals who have bad credit standing.
Credit rating should be the concern of most people.
For some, who do not have too much loans or credits, their credit status is still their concern, but not to the point that it is bothering their lives.
This is the advantage of having a good credit status or rating.
On the other hand, those people who have bad credit standing find it so hard to get out of the trouble because it is affecting their lives and sometimes even the lives of their loved ones.
Some people take for granted the concept of credit rating especially if they do not need to have a loan or mortgage in the future but still, the legal actions that many credit card companies might bother them in the future.
Moreover, people who have bad credit standing cannot just say that they are not bothered by their credit status because they do not need to loan in the future.
They would still suffer the effects as they do some financial transactions in their life.
For example, some utility companies would deny the application of someone who has a bad credit status.
Some landlords for example will investigate the credit standing of their tenants before allowing them to live in his house because they are afraid that they will suffer the same thing like the credit card companies-- that they did not receive any payment or the payment was not complete.
Credit status is sometimes very hard to control because some credit card companies would impose too much interest on credit cards.
Some popular effects of having a bad credit status or rating are; first, the borrower may be denied of getting a new credit.
This was the argument presented earlier.
Some financial institutions after investigating the credit rating of a borrower and found out that they have bad credit standing, will not approve the request credit of the borrower.
Some credit card companies after realizing that a particular borrower has a bad credit rating will impose higher interest rates.
Even those companies engaged in car rentals and reservations; investigate a lot on the borrower's profile before engaging business with them.
Moreover, borrowers with bad credit rating are sometimes rejected by employers.
Employers are thinking that they are delinquent people, thus, work or tasks cannot be entrusted to them.
Credit rating is part of someone's profile.
This is like a crime record that will not be deleted into the profile of the borrower.
It is better to prevent oneself from having bad credit rating than to suffer from its consequences in the future.
Prevention is still better than getting into troubles.
By simply being responsible, credit rating will remain good.
Hence, responsibility together with doing the obligations will make the life of an individual less complicated.