Bad letters, in short, bad records on your credit reports, such as overdue payments and even tragic bad debts. Such a situation is, in fact, an indication that you have not complied with your contractual obligations and have failed to act in good faith. This could cause you many unnecessary problems in your life and work. You might ask, "What's wrong with bad letters?" How bad is its impact? Let me tell you next。

What's the impact of bad personal recognition? These negative consequences cannot be ignored

First, you'll find yourself unable to apply for credit cards. Why? Because banks consider your credit when they decide whether to issue a card. Your bad credit means you're a high-risk user because the bank is afraid you'll be late. So they chose to reject your application。

Second, you might have a problem with high interest rates. Some people are satisfied with basic credit conditions, but because of your poor credit, microfinance institutions may offer you relatively high interest rates. These agencies use high interest rates to avoid risk. And you can only accept this interest rate for the success of the loan, which means you have to pay higher borrowing costs, which will increase your economic pressure。

And then, you can't take the mortgage. Many times people mortgage their assets when they need money to get a loan, but the lending institution evaluates your credit, even if you have the assets to mortgage, it still labels you as a high-risk user because of your bad letters, and you are still unable to take out the mortgage。

Besides, you'll make it harder to rent. In some places, tenants are required to provide credit reports. The landlord will assess your credit and solvency through your credit reports. Therefore, if your credit report is poor, the landlord may refuse to rent you a dwelling or request a higher deposit。

Finally, you might have problems finding work. Many companies conduct background checks during the recruitment process, including your credit reports. If your credit reports are bad, the recruiter may think you're not good at it, especially if you're on a financial-related job, and you can be rejected。

Thus, the iron truth is at hand: bad faith should not be ignored. It was recommended that everyone should be held accountable for personal credit, that good repayments should be noted and that delays should be avoided。