If you've defaulted on loans, or your mortgage is in arrears, and you're over your credit card limit, then the chances are that you could be heading towards being a bad credit risk, and that in the future lenders won't want to help you.

Here's what you need to know.

1. If you have a poor credit rating, then it's much harder to get credit cards should you need them in the future. Whilst they might have been your undoing, there's no telling when you might need to pay for some unexpected car or house repairs that you hadn't budgeted for.

2. It's much harder to get loans if you are seen as a high risk. You might be thinking about improving your home, or going on holiday, but you might not get a loan at all from the traditional lenders.

3. Getting a mortgage in the current financial climate is very difficult, so imagine how much more difficult it will be if you don't have a good credit score.

4. You might be thinking about changing your car to a more economical one, or because your new job is further away, and you travel more. If you are seen as a high credit risk, then it will be hard for you to get vehicle finance if you need.

5. It will be harder to get any sort of credit, especially if you want to take advantage of the "buy now, pay later" deals employed by many stores.

6. You'll pay much higher rates of interest if you can ever get credit, meaning that your repayments will be much higher. Interest rates of around 30-40% on loans and credit cards for those with a poor credit rating are enough to ensure most people make their payments on time.

7. You may "fail" a credit check when changing your mobile phone, which means that you might not be able to get the phone or payment option that you want.

8. If you are subject to CCJs (County court Judgements) or bankruptcy, then you should know that the rulings last a long time and will make a serious difference to your ability to get credit.

9. It's imperative you seek help if you're struggling to pay your bills. Don't let them mount up, and contact your creditors as soon as you can. You might be able to reduce your monthly payments.

10. You might even lose your banking facilities, as your bank won't want to take the risk with you.

Now you know more about the consequences of having a poor credit rating, you'll want to do everything you can to protect it.