Like it or not, credit is a necessity. From the house that you live in, to the car that you drive, your credit score impacts almost every facet of your life. With today’s economic challenges, it has become more important than ever to achieve and maintain a healthy credit score.

For those with bad credit, increased interest rates may further inflate the cost of living, making even trivial purchases seem difficult. A bad credit score can cost you hundreds each month in interest payments, or can keep you from getting approved for credit altogether. Use the infographic below to see how much money having a bad credit score could cost you.

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The American middle class is shrinking. According to a study conducted by the Pew Research Center, the middle class has shrunk by 10 percent since 1971. To make matters worse, a reported 85 percent of people surveyed say that it is more difficult to maintain their standard of living compared to 10 years ago. The question is, why? Has our culture evolved into a less responsible population, or is our depressed economy to blame? Read on to discover how both forces have affected the middle class.

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Foreclosure and bankruptcy are both daunting—often the last straw after a long financial struggle. When considering your options, it is important to compare the eventualities and weigh the effects carefully. While both will cause undoubted credit score damage, minimizing the fallout is critical. Despite your current situation, avoid giving in to complacency. Include long-term credit repair as a factor in your decision. In addition, consider:

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Effective credit repair begins with the proper tools. If you are in the market for a new credit card, it’s important to weigh its ability to help your cause. Credit utilization accounts for 30% of your credit score. That means nearly one-third of your financial reputation is based on your credit balance vs. your total credit limit. What’s worse, many cards come complete with hidden fees, outrageous interest rates, and other factors that could stand in the way of your credit health. Why sign up for a card with unnecessary liabilities? Do your homework by reviewing the Schumer Box of each card, and keep an eye out for the warning signs below. Overcoming bad credit is easier with the help of a reliable credit card.

Warning signs:

1. A high APR rate.

It’s no secret that credit cards come with high interest rates, but how much is too much? According to creditcards.com, the national average for credit card APR was holding steady this week at 14.91%. In addition to this factor, credit card companies should consider your credit score when determining your individual rate. A score of 720 or more warrants the same competitive consideration you would receive when qualifying for any other loan. Take a look at the APR attached to your potential card. If the rate is sailing well beyond the average, it’s time to look elsewhere.

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Due to the economic recession, the list of career opportunities has taken a hit. Moreover, employers are becoming more selective in their personnel choices, often relying upon personal and financial background checks before casting a deciding vote. If you suffer from bad credit, you may be demonstrating poor employee skills. Read on to discover how your credit rating relates to ideal new-hire qualities.

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