Wait, What? I Have Bad Credit?

Bad credit doesn’t just happen in an instant. There is always a certain pattern, a routine that results in a person ending up in the said situation.

Most reasons often start with “It’s just one card. I can use it for everything!” and “I wasn’t aware it would show on my credit report.” Despite these reasons, however, you should know what bad credit is all about.

Having bad credit history is not exactly ideal, but it doesn’t automatically eliminate your chances of getting a loan. The experts from RapidLoans.com.au say that you still qualify for certain programs and amounts, but it is still important to know the reasons behind the bad credit.

You might be surprised; some of them are for reasons you never expected.

Library Books

Most Australians rely on the Internet to search for information about their classes or work. Still, there are some eager beavers who choose the old-fashioned way of research: by visiting the nearest library. You might be one of them.

It may seem like a minor concern, but overdue books can cost you. Failure to return the books on time results in fees that grow over time. Some libraries that need the money might send representatives to collect your payment immediately.

Gym Cancellation

A number of people eagerly sign up for gym membership without reading the fine print, especially the section concerning cancellation. As a result, it’s no surprise that some of them experience shock seeing how much they have been charged. Abrupt cancellation often comes with big dues because that is simply the system that these fitness centres have in place.

If you forget to pay, some gyms will report the abrupt cancellation as a non-payment issue to credit bureaus.

Unpaid Medical Bills

Forgetting about the medical bills is also one of the biggest reasons people have bad credit ratings. The reasons for not paying vary, with many citing lack of funds and/or distraction or confusion with the payments. In some cases, patients thought they need not pay for the ambulance, but the hospital says otherwise. The unpaid sum often ends up being forwarded to a collection agency, resulting in a bad credit.

To avoid issues with your credit, keep this golden rule in mind: pay it off. It’s better to pay everything off now rather than face bad credit in the future.