What can be a result of long-term poor credit?

Long-term poor credit can lead to higher insurance premiums because insurance companies often use credit scores as a factor in determining rates. When an individual has a poor credit history, it typically indicates a higher risk for the insurer, which may result in increased premiums for auto, home, and other forms of insurance. Insurance companies perceive individuals with poor credit as more likely to file claims, thus they adjust rates accordingly to mitigate potential losses.

In contrast, having poor credit does not ease the process of loan approvals, enhance rental agreements, or decrease educational costs, as it generally leads to the opposite outcomes.