Daily BulletinHoliday Centre


  • Written by News Company

Knowing the signs of bad credit and being able to recognize them is actually a skill that very few people have. Most of us have bad credit and we are not even aware of it. The score of your credit can actually influence several things in your life hence it is essential to know what are the signs that can help you to know that the situation is alarming. Understanding the signs of having bad credit can help you to save yourself from entering the danger zone.

Sometimes, ignoring the signs becomes the main reason for your debt trouble. You do not pay enough attention to your bank statements and so you do not know whether your credit score is good or does it need help.

It is said that your subconscious constantly keeps nagging you at first about your bad credits and as time passes you maintain your negligence, and then suddenly one day your paycheck is not enough to cover your bills and you realize that it is too late.

Here are the seven biggest signs that yell ‘BAD CREDIT!’ Let’s have a look.

A denied Loan Application

Ever applied for a loan and your application got rejected right away?

Well, that is what we are talking about. It is one the most common and clear signs that your credits are not good enough to help you with getting a loan. Here’s what happens, when you have a decent credit score, you automatically become entitled to affordable financing. But if your credit score is in rough shape then we are sorry to tell you this but ‘no security business loans!

After your loan request gets rejected, unfortunately, try to find out where your credit score stands. The lender has to provide a credit report’s copy that they have used and a fair explanation for denial of the loan.

The Issuer of Your Credit Card Is Not Lowering Your APR

Your credit card will be reviewed by its issuer if you ask for a raise in credit limit on your account or for a lower rate of annual percentage. There is definitely something wrong with your credit report if they do not approve of your request. It’s clear that your credit score does not meet their requirements and that you must do something about it.

Your Credit Card Gets Closed By Your Issuer

Credit card issuers often conduct account reviews, it is a part of their job. So if you get notified about any changes in the terms and conditions of your credit card, such as ‘your credit limit has been decreased’, you should understand that your credit score is not impressive enough.

But what is worse is that they can actually close your account if your credit score drops, even below the line of bad credit score.

Getting a Default Notice from a Creditor

Your credit score can get hurt by late payments but the situation can get alarming if you enter the default zone. The same thing happens if you ever were, or get sued for a debt. You might have already entered default by the time you receive a judgment.

Getting a default notice is simply a sign that tells you that your credit score is affected negatively and that you should work on it and improve your credit score.

Being Contacted By a Debt Collector

If you have bad credit, you are likely to receive a call from a debt collector. Understand it this way, various things such as unpaid utility bills, gym subscriptions, or medical bills can add up in collections and will hurt your credit score badly. If the service providers (owners of companies) contact and report about you to three credit reporting agencies, you can get into serious trouble. So if you start getting calls from debt collectors or bills in the mail; you must check your credit.

Getting Subprime Credit Offers

Subprime Credit offers are specially designed for those who have bad credit. So if you have started receiving these offers, it is apparent that your credit score has fallen very low. It can be hurtful if you are someone who has always remained qualified for prime credit.

Putting a Deposit Down On a Utility Account

Let’s be clear about this; for pulling the credit out of your account, the only responsible people are not lenders. There are also insurers, cellphone providers, and utility companies who check your scores to see if doing business with you is the right decision to make. So if you are asked to pay fees or they offer you high rates, your credit score is to be blamed.

If you are already in debt, we have something prepared for you so you can figure out a way to get out of debt.

How You Can Get Out of Debt?

If you see any of these signs and are being able to understand the severity of the situation, congratulations, you are at step number one.

Here’s what you can further do:

  • Taking Inventory: Prepare a list and jot down every single debt. Mention the rate of interest and minimum payment. Write down your income along with your expenses per month to make a plan.

  • Limit Your Expenses: Limit your outings, dinners, and unnecessary expenses as much as you can in order to get out of the situation as soon as possible. It’s not a place to make permanent residence at.

  • Calculate: After cutting off all your expenses, if you are able to pay the debt, take a deep breath. You can sleep peacefully for now at least. But if the debt is more than 50% of your monthly salary, consider bankruptcy. It is a reasonable choice to re-establish decent financial health. You can take free advice from a bankruptcy attorney.

Choose a Plan: If you can do it yourself, choose a payment method to pay off your debt. The two most popular ones are:

  • Debt Avalanche: With the highest rate of interest, keep all of your extra payments for paying off your debt until you are done paying it. After this, move to another. One by one, from highest to lowest.

  • Debt Snowball: Start with paying off the lowest debt. Paying off small debts can actually motivate you.


There are plenty of indicators that tell you about your credit score’s health and if you are able to understand these signs, you can remove the root of all causes. It is better to keep your credit score maintained in order to not end up in a situation where your loan applications get rejected again and again. Being able to recognize these signs on time can enable you to stop your credit score from falling down and, at worst, entering the danger zone. Getting regular calls from debt collectors or having your credit card closed by your issuer are things that you might actually want to avoid as much as possible.


The Conversation


Closing the Gap Statement to Parliament

Mr Speaker, when we meet in this place, we are on Ngunnawal country. I give my thanks and pay my respects to our Ngunnawal elders, past, present and importantly emerging for our future. I honour...

Scott Morrison - avatar Scott Morrison

Prime Minister Interview with Alan Jones

ALAN JONES: Prime Minister, good morning.    PRIME MINISTER: Good morning, Alan.    JONES: I was just thinking last night when we're going to talk to you today, you must feel as though you've ...

News Company - avatar News Company

Prime Minister Bridget McKenzie press conference

PRIME MINISTER: Good afternoon everybody. The good news is that the Qantas flight is on its way to Wuhan and I want to thank everybody for their cooperation, particularly the Chinese Government as...

Scott Morrison - avatar Scott Morrison

Business News

Choosing the Right Coworking Space For Your Business

As the capital of Victoria in Australia, Melbourne is inhabited by millions of people and is known as one of the most liveable cities in the world. The latter is due to the city’s diverse community...

Sarah Williams - avatar Sarah Williams

What Should You Expect from A Carpentry Apprenticeship?

Those wanting to pursue a career in woodwork, whether it be to make furniture, construct buildings or repair existing wooden structures, will have to first commence a carpentry apprenticeship. This ...

News Company - avatar News Company

4 Tips To Choosing A Reliable SEO Company For Your Digital Marketing Agency

Working with a digital marketing agency Perth is the best bet in ensuring that your business is promoted well in the online space. If you are an app developer Perth, you may have to work closely wit...

News Company - avatar News Company


How to Be a Smart Frugal Traveller

You are looking through Instagram, watching story after story of your followers overseas at a beach in Santorini, walking through the piazza in Italy, and eating a baguette in front of the Eiffel ...

News Company - avatar News Company


Graduation is the stage of life when a student receives the rewards of hard work of years. It must have taken sleepless nights and tiring days to achieve the task. Now, as you have received your cov...

News Company - avatar News Company

A Travel Guide for Vacations Overseas

There are two types of tourists. Of course, that's a sweeping generalization, and we could be talking about any possible part of traveling.  In this case, we're discussing those who stick to the ma...

News Company - avatar News Company