Mortgage Loans

• If you have a credit report with bad credit, you may have to pay a higher interest rate for a mortgage loan, which can cost you thousands of dollars in finance charges over the life of the loan.
  
  

Employment

• Some employers will review your credit report before they decide to hire you. A bad credit report can disqualify you from employment consideration.
  
  

Car Insurance

• Your car insurance premiums can increase if you have bad credit. Some insurance companies will review your credit report when it's time to renew your policy.
  
  

Universal Default

• If you are late on a credit card account, your other credit cards, which you have with other companies, may decide to increase your interest rate, lower your credit limit or even close your account. This is called the universal default clause.
  
  

Renting

• If your credit report is in bad shape it may be difficult to find housing. An apartment complex may decide against renting to you based on your credit report.