There are many unpleasant effects of having bad credit, all of them really suck. I wouldn’t wish them on anyone, and if you have bad credit then you likely know most of these, or maybe not. If you are wondering what the big deal is about bad credit, then read this list.

1. Sky high interest rates on credit cards, loans, and every other form  of credit

2. Getting turned down for a job that does background checks, and they are doing many credit checks these days to see if someone poses a theft risk.

3. Difficulty finding an apartment because of credit checks.

4. Marriage. Yup, I know it sounds weird but who wants to marry someone who has a horrible credit rating if they themselves do not? Nobody, of course. When you marry, your individual credit scores remain in tact, BUT any credit that you and your spouse apply for together (like a mortgage) will be negatively affected by the bad credit rating of the other spouse. Yes, it is the love that is important, but in reality, money will dictate your quality of life. I have heard of many couples staying engaged forever or at least until the one with bad credit fixes up their finances.

5. Cell phone. Prepaid sucks doesn’t it? Yes, it does. If you have a bad credit score then you can forget about getting a normal cell phone plan. They will either ask for a large security deposit, which they hold in case you default on the bill,  or just decline you outright. Then you have to deal with prepaid minutes and not being able to make a call at the one time you need to, yes it always happens that way. Anyone who tells you prepaid is the way to go probably has bad credit. Avoid this whole prepaid scene if you can.

6. Getting the lights and heat turned on. Yup, utility companies now routinely check your credit when you apply for new service. They may require you to put down a large security deposit just to turn your lights on. Nice, huh?

7. Car insurance. You will have higher premiums if your credit sucks, they check it when you apply. The amount might not be exorbitant, but it will be an amount nonetheless.  Every cent counts when you are dealing with living expenses, save wherever you can.

8. PHONE CALLS! Millions and millions, and millions, and millions of phone calls from debt collection agencies. Depending on what state you live in, these toe fungi call you from the minute you wake up to the minute you go to bed. They will find out where you work and then start calling there, and depending on where you work this may cause quite a scene. They want to embarrass you, they are the scum of the earth, and they figure that you will get so sick of calling that you’ll come down and either shoot them or pay the bill.

* Please, no comments about how the debt collectors are nice and just doing their job, and the person in the wrong is the deadbeat not paying their bills. True, you are to blame for not paying your bills, USUALLY. Sometimes though, circumstances prevent someone from working, such as an injury or illness. These people don’t need some 4th grade dropout telling then that they better pay up or else. They need a break, some compassion would be nice.

9. Education. Most kids don’t get full scholarships to go to college. They have to go the old fashioned route, and pay for it. Most kids don’t have twenty grand laying around, so they need to get a student loan. If you are the student and have bad credit, you will likely be declined. If you want a school loan for your own kid, then you will likely be declined if he requires a co-signer. That would really suck right? Yes, it would. Credit lenders are targeting young people, even teenagers, to acquire all forms of credit. They want to hook the kids while they’re young, and make them pay a lifetime of interest. Sad, very sad.

10. Quality of life. Because of all the nine previous items, and many others, your overall quality of life will suffer if your credit is poor. If you have bad credit now, make a commitment to yourself to map out an attack plan for improving your credit. The sooner you take that first step to being debt free, the quicker it will actually happen.

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You have seen it on television oh so many times. A company promises to completely wipe things off your credit report and have your credit score fully restored virtually overnight. Well, unfortunately, real life is nothing of the sort. Companies, like this one, have the same powers over your credit report as you do. The simple fact is that you cannot remove an accurate , legitimate debt from your credit report without paying it or settling it with the debtor, period. There are ways, however, to remove ones that are not legitimate. You do not need anyone to assist you to accomplish these tasks.

There are companies, however, that can perform all of the legal measures available for you. This can be anything from submitting credit disputes, to requesting debt validations, to setting up a debt repayment plan for you. Many different law firms specialize in this area. If you are too busy, or just would rather have someone else do it, then I would highly recommend one of these programs. They are usually very affordable, and there is almost always some level of benefit to the consumer. Just watch out for the incredulous promises like, “all negative items removed from your credit report” and other similar claims.

If you do have the time and energy, and you know for a fact that some of the items on your credit report are erroneous, then I also recommend taking your credit into your own hands. If there are erroneous debts on your credit report, you have to write to them with a formal letter and explain the discrepancy in detail. Tell them why you believe the debt is not legitimate, and provide copies of any documents and receipts to strengthen your case. When the credit bureau receives your letter, either they will remove it immediately (unlikely), or they will start an investigation into your claim. It takes about 30 days for this process to complete, and even a lot earlier sometimes. If you have used the same name and address for years on end, then they will have no trouble locating records about you, thus it is easier for them to complete the investigation.

After they are done, they send you a letter of decision. That letter will tell you that they found the debt to be accurate (it stays on the credit report), or they cannot prove the validity of the debt and remove it from your credit report. This is just an example of one of the simpler scenarios in dealing with the credit bureaus. Sometimes, the process can get complicated; getting to know the ins and outs of the credit industry can go along way towards helping you beef up your FICO score. This letter is an example of an erroneous entry removal request that you would send to the credit bureaus, just adjust it in the appropriate areas, and send it to the credit bureau.

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