Many people don’t know or care about their credit. In a lot of cases they may either jokingly say, “I probably have bad credit” or unknowingly assume that their credit is good.Most people just assume it’s either good for fair… but certainly not poor. The realization that their credit is actually considered bad usually isn’t made known until it’s too late.Usually the consequences of bad credit are pretty obvious.Want a store credit card to buy that big screen TV? Denied. Want to get that new car at the special financing rate? Not a chance. Looking to lease a new apartment or purchase a new home? Not without a big deposit.While these are the obvious consequences of not having good credit, there are also many hidden costs of bad credit which you may not be aware of.Here are 3 of the not-so-obvious costs of bad credit:1. Higher Interest RatesThis applies to just about everything, whether you are getting a new credit card, purchasing a new car, or buying a new home.The lower your credit score, the higher your interest rate is going to be. While the rate difference may appear small (the difference between a 7% rate and 9% rate is only 2% right?), the amount you will pay over the term of the entire loan (5 years for a car; 30 years for a mortgage) adds up to several thousands of dollars more.Be especially careful of credit card offers. They will offer you the card at a very low rate (2.9%, 8%, or 11%) but have very small print that allows them to skyrocket the rate anywhere from 18% to over 20% if you are late on just one payment or go over your limit.2. Higher Car Insurance RatesYes it’s true.Car insurance companies will base your premium on your credit score.Even if you’ve never been in an accident, never got a speeding ticket, and always wear your seatbelt you won’t get the best rates.A poor credit score may result in higher insurance premiums and may even result in a denial of coverage!3. Higher Financial StressWhen most people talk about the negative effects of bad credit, they usually talk about the numbers: credit scores, interest rates, monthly payments, etc.However, one of the biggest consequences of bad credit is the financial stress it causes in life.The more money you spend as a penalty of having bad credit means less money in your bank account at the end of the day. Less money lead to more stress, which can have negative effects on you, your job, and your relationships.Half of all marriages end in divorce, and usually financial problems are cited as a leading cause of a failed marriage. Bad credit certainly doesn’t help the situation.The number one financial mistake people make is not knowing what their credit score is and understanding the consequences of good and bad credit. While there are many obvious disadvantages of having bad credit, there are also many hidden disadvantages of having poor credit.Knowing, understanding, and managing your credit is an important part of your financial plan, as it effect just about every aspect of your life.