If the student with a poor credit report is fortunate enough to land their dream job, the weight of the credit report will pull down a portion of their take home pay. They will be saddled with the existing debt, as well as pay higher prices on everything from cars to insurance. Insurance rates are based on a client's risk of filing a claim and the insurance companies adjust the premiums accordingly. A 2004-2005 study by the Texas Department of Insurance found that, "...[I]nsurance loss ratios for people with the worst credit scores are triple those of people with the best scores" (Overview... ). For the poor credit risk this results in higher rates on auto, home, and even life insurance premiums.
Yes, even life insurance premiums are affected by a poor credit report because poor credit can damage your health and may result in your death. Endless financial worries and fears of collectors calling can manifest themselves in a myriad of medical problems. Hard to manage credit can cause stress, hormone imbalance, heart disease, high blood pressure, diabetes, and even some forms of cancer (Lawrence). The risk is even greater for young women where financial problems are a leading cause of suicide (Khaitova).
Easy credit and the lure of the credit card companies can result in a lifetime of misery when out of control finances result in the loss of a student's dream job. When faced with a second rate job and escalating insurance rates, their health begins to suffer. For some, the cycle of mounting debt can result in death or even suicide.