Whilst we all know that a low credit score will cost you more on loans or credit cards, very few actually take notice of the many other insidious effects a credit rating has on our every day lives.

In a sense, credit ratings have become a new form of class filtering, those with bad credit ratings are placed right at the bottom, below are some of the things which for them will costs more or have a negative effect:

Insurance

Insurers believe that if you have a good credit rating, then you must be carefully, likewise, if you have a bad credit rating, you’re risky and more likely claim, therefore you don’t get offered the cheapest premiums available.

Car loans

As with other loans, the higher the risk you’re, the more interest you’re likely to get charged when you apply for a car loan.

Renting

Some landlords are wary of potential renters who happen to have bad credit ratings, some will ask for a higher deposit or reject the renter altogether.

Utility bills

Gas and electricity suppliers also band their customers, those that can’t pay by direct debit often end up paying more.

A good thing though, is the fact that bad credit doesn't stay with you for life, things like credit cards for bad credit can improve your credit score but not prepaid cards. By far the most effective way to improve a credit score is reducing your debt significantly.