Apart from having grave repercussions on mental health due to increased stress, the side effects of a bad credit score can affect several aspects of your life. Let’s look at how a bad credit score can affect your other financial decisions:

• Higher interest rates on loans
  Having a good credit score elevates your chances of getting loans from a banking institution at an attractive interest rate. As the credit score dwindles, banks tend to charge a higher rate for the same loan amount. For example, if your FICO score is 620, you might be charged an interest rate of up to 4.8% for a home loan. On the other hand, you’d be charged an interest rate of 3.2% on the same amount if your FICO score was between 760 and 850, as it increases your financial reliability. So, paying off loans on time provides benefits in the long run.
• Difficulty getting a job
  It is common for employers to run a background check on a prospective employee’s financial standing and credit background. Among the side effects of a bad credit score are lower chances of getting a job, especially if you are looking for a job in fields that require financial handling.
• Loan applications may not be approved
  Banks check whether a prospective customer has the financial capability to repay loans on time. Although banks get more interest if a person defaults on their payments, they like to operate smoothly, as several other factors affect the smooth inflow of money in the banks. So, applications for home loans, car loans, education loans, and any other loans may not be approved or have higher interest rates if you do not have a satisfactory credit score.
• Difficulty accessing credit card rewards
  Several cashback incentives and introductory offers are associated with a good credit score. On the contrary, a poor credit score can cause companies to cease access to certain credit card benefits. There could even be some concerts and events to which you get passes if you regularly use your credit card and clear the dues on time, which you may miss out on due to a poor credit score.
• Life plans are impacted
  While most of us have plans with respect to our financial mobility, carrying out these plans might get difficult if we do not have a good credit score. Not having a good credit score means you’re paying much more for loans, certain loan applications are being rejected, and you might also be facing issues getting a mortgage with a low interest rate if you planned to buy a house. In such cases, adverse effects on plans and difficulty following up on them is one of the worst side effects of a bad credit score.