Misunderstanding People with Poor Credit
I always felt that people with a poor credit score were irresponsible people who did not pay their bills on time or at all. While this may be true in some instances, it is not always a true scenario. My husband and I had A1 credit for many years. We were responsible to our debts and paid bills on time.
My Situation Changed My Way of Thinking
All of a sudden, my husband had to take an early retirement from his job of 32 years with the same company. He became ill and this prevented him from carrying out his job duties. We were unaware that for 17 months he could draw Social Security. I started working two jobs because we, like many other families, needed to have two incomes to make ends meet.
I planned to retire at 67 years of age but my left ankle, foot and leg started to become painful to the point that I could hardly walk after eight hours of work. Too frequently I was required to work a second shift or another eight hours due to some nurse calling in ill. I just could not do this without having a lot of pain. The doctor said that I needed major surgery on my foot and leg.
In addition, the bones in the top of my right hand collapsed and my wrist became displaced after a tendon injury a few years before. The doctors said that they could do nothing for my right hand, except for a bone fusion of all the bones in my hand and this would decrease flexibility, it would end my nursing career. I found myself frequently dropping items. I could no longer give good injections or hold medicine for my patients without dropping them. Writing nursing notes became a painful necessary duty every day.
After I healed, I found I still could not run this nursing race any longer. After 43-years of nursing, this forced me to take an early retirement. I was not ready for retirement and neither was my husband.
Bad Things Indeed Happen to Good, Responsible People
We became behind in our bills when my husband became ill and were just starting to get on our feet when I became unable to practice nursing. We got behind once again even though we were both drawing Social Security. Our bad situation was real and one of the most challenging things we had ever experienced.
Had my husband and I been able to carry out our retirement plans we would have been ready for retirement. As I said earlier, bad things happen to good people. No one including me had or has any right to judge another person’s financial situation or poor credit score. Bad things do happen to good people that they cannot do anything about to correct.
What Happens When One Has Bad Credit?
What a bad credit score means to the person is that it will be difficult if not impossible to purchase or rent a home or any kind of living accommodation such as an apartment. It will be difficult to make any big purchases such as a vehicle or major appliance.
Future employers, credit card companies, and businesses such as car insurance companies frequently pull a credit report and credit scores from the three credit reporting agencies on job hunters and those looking to do business with these companies.
If the credit poor person is fortunate to make purchases, get credit or buy car insurance they will pay a higher payment and rate of interest. Businesses look at poor credit scores as irresponsibility on the part of the person. Can this person be trusted to be a good employee or pay bills on time.
We Found Car Insurance Companies Do Give Credit Poor People a Break
For example, what we found with our automobile insurance was our company never pulled a credit report and scores and our company worked with our budget and gave us a very good deal. We actually received more coverage for nearly $100.00 less per month than our old insurance company. It is important to be up front with creditors.
Purchasing automobile insurance is much like watching the stock market. Our insurance agent explained to me that higher insurance rates depend upon how many claims the insurance company had to pay out the year before. If the company had to pay a lot of money for accident claims, the rate would rise for everyone the next year. The primary thing car insurance companies look at is driving history such as, tickets and accidents in the previous three years. This puts the person in a high-risk category and this is what really raises insurance rates, not the credit score.
Do not be afraid to buy car insurance because car insurance is one of the things that the person with bad credit can generally get at a decent rate. Shop around and be honest about a poor financial situation. Most insurance companies will work with your budget and situation when you present a good driving record.
Get insurance rates on at least six companies and take the best rate for what the company is offering.