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Understanding and Dealing with the Draconian Consequences of a Low Credit Score

Updated on April 30, 2014
Poor credit scores may dampen your spirit
Poor credit scores may dampen your spirit | Source

Low Credit Score

A low credit score will raise a red flag.
A low credit score will raise a red flag. | Source

A low Credit Score will Hamper you Professionally and Financially.

A Low Credit Score can Hamper you Professionally and Financially.

If you become straddled with a low credit score, you may be labeled as being irresponsible. Worse, you may become a victim of discrimination and deemed more likely to commit theft. This misperception is more readily applied to minorities who are among groups that have suffered the greatest impact from our country’s recent economic crisis.

A large percentage of employers unfairly use credit reports to screen employees who are seeking employment. Studies show that one in ten individuals are denied employment based on findings in their credit reports; especially students, women, minorities, and seniors.[1]

Fifty four percent of employers when interviewed stated that they ran credit reports on prospective employee to prevent theft and fraud, to prevent claims against themselves for negligent hiring; and to determine whether applicants are trustworthy [2].

As you can appreciate, the adverse consequence of bad credit score can easily affect you, as it affects job seekers at all levels.

Overspending is Not the Cause of Bad Credit

Source

Typical Causes of Low Credit Scores

Contrary to misperceptions that financial irresponsibility is the cause for credit problems, studies have shown that over 50% of people who have filed bankruptcies were forced to do so because of health problems [5].

Other causes are:

Job loss

Decreased work hours

Divorce

Bad breaks,

Depressed economy

Insufficient business

These problems usually result in poor credit scores. Each person may be able to list many other reasons led to his or her financial difficulty.

Mismanagement of finances is rarely the cause.

Credit Checks by Employers Create Obstacles for People Seeking Employment

Courtesy of Frank Thomsen via Flickr CC 2.0 some rights reserved.
Courtesy of Frank Thomsen via Flickr CC 2.0 some rights reserved. | Source

Credit Score

Are you Satisfied with your Credit Score?

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Financial Irresponsibility?

Don’t be disheartened. A poor credit score does not mean that you are financially irresponsible. With the high unemployment levels, many people have become unable to pay bills or repay loans. Unfortunately, inability to pay bills or to repay loans will affect your credit scores.

The Federal Reserve Board and the Federal Trade Commission have found that there are racial gaps in the credit scores and that poor credit is linked to factors other than financial irresponsibility.

Excessive use of credit card may also be seen as financial irresponsibility. This is hardly so in many cases. There are many unemployed individuals who have been forced to use their credit cards after becoming strapped for cash and unable to purchase necessities such as groceries and medications.

Using poor credit scores to create obstacles for people and forcing them into poverty while they are down is unfair.

Decrease in Credit Score

Courtesy of Casey konstantin via Flickr CC 2.0 some rights reserved.
Courtesy of Casey konstantin via Flickr CC 2.0 some rights reserved. | Source

Bad Credit Scores do not Create a Greater Likelihood of Theft of Fraud

A person with bad credit is no more likely to steal than an individual with an excellent credit score. According to TransUnion, there is no statistical correlation between a poor credit report and likelihood to commit fraud.

People with strong ethical values do not lose those values simply because they are faced with hard times.

Many people lost jobs during the recession of December 2007 through June 2009. During those years, 8.4 million jobs were lost, causing drastic changes in family wealth. [3]

Should it be assumed that the American recession created many criminals?

Contrary to the unfair treatment imposed upon people with poor credit scores, people facing hard economic times have the greatest need for employment.

To deny them employment and to stigmatize them as being more likely to commit theft based on their low credit scores is discriminatory.

The Unemployment Rate of People subject to Credit Report Screening May Increase

The Unemployed need jobs and should not be forced into poverty by being judged by their credit scores. Courtesy of Andy Arthur via Flickr CC 2.0
The Unemployed need jobs and should not be forced into poverty by being judged by their credit scores. Courtesy of Andy Arthur via Flickr CC 2.0 | Source

Proposed Legislation

In February 2014, Representative Elizabeth Warren proposed the Equal Employment for All to prevent employers from using an employee’s credit score as part of the screening process to determine eligibility for employment.[4]

The act reads in relevant part:

(1) GENERAL PROHIBITION.—Except as provided in paragraph (3), a person, including a prospective employer or current employer, may not use a consumer report or investigative consumer report, or cause a consumer report or investigative consumer report to be procured, with respect to any consumer where any information contained in the report bears on the consumer’s creditworthiness, credit standing, or credit capacity-

(A) for employment purposes; or

(B) For making an adverse action

S.1837.The Equal Employment Act for All 2013

This proposed legislation overshadows the misconception that poor credit scores were somehow reflective of an employee’s character.

Enactment of this legislation will tremendously improve the lives of many Americans.

Myths related to Increases in Credit Scores

Many Prospective Employers and Lenders see your debt Summary, Credit Profile and FICO Scores

A prospective employer with access to your credit report will get to see your:

Credit summary

Debt summary

FICO scores

Credit Summary

Courtesy of Casey Konstantin via Flickr CC 2.0 Some rights reserved.
Courtesy of Casey Konstantin via Flickr CC 2.0 Some rights reserved. | Source

Credit Summary

Your credit summary is a summary of information related to your financial accounts.

Percentage of credit currently available: If the percentage of credit available to you is low, a red flag is raised.

Number of satisfactory accounts: Too many unsatisfactory accounts will cause your prospective employer or lender to judge you.

Now delinquent Derogatory Accounts: Present delinquency will be used adversely against you.

Was delinquent derogatory accounts: Prospective employers or lenders will use your past occurrences of delinquencies to judge you.

Public Records: Bankruptcy, foreclosures, wage garnishment, unpaid tax liens and past due child support are listed on your credit report and will adversely affect your credit score.

Number of inquiries: Several inquires by others into your credit will affect your credit score.


Delinquent Accounts on your Credit Summary will Adversely affect you

Courtesy of Courtney Konstantin via Flickr CC 2.0 some rights reserved.
Courtesy of Courtney Konstantin via Flickr CC 2.0 some rights reserved. | Source

Debt Summary

Your debt summary looks at the amount of money owed to different creditors as outlined below:

  • Revolving Debt (Credit and Retail Card)
  • Installment Debts (Fixed Payment Loans)
  • Other Debts
  • Collection Debts

Your Approximate Total Debt

FICO Score (Credit Score)

Your Credit Score (FICO Score) is used by creditors to determine your credit risk or credit worthiness. The FICO score ranges from 300-800.

According to credit.com:

Excellent= 750+

Good= 700-749

Fair =650-699

Poor =600-649

Bad =below 599

Scores below 599 may indicate that you are a credit risk.

Components of your Credit Score

 Courtesy of Pne vis Flickr CC 2.0 some rights reserved.
Courtesy of Pne vis Flickr CC 2.0 some rights reserved. | Source

Factors used to calculate the Credit Score


You credit score is made up of the five areas outlined below. The weight given to each area is indicated by the attached percentages:


Payment History 35%

Payment history is the most significant component of your credit score. This looks at your punctuality at making payments. Lack of punctuality will seriously impact your score.

Amount Owed 30%

The 'amount owed' component, analyzes the ratio of what you owe to your available credit. A red flag is raised if the ratio of debt owed seriously exceeds the amount of available credit.

Length of Credit History 15%

The FICO score considers the age of each account and the balances on these accounts over time. New accounts with sudden increases in balances will affect your scores. Carrying large unpaid balance for many months will lower your credit score. Older accounts with low balances are in your favor.

Types of Credit Used 10%

'Types of credit' looks at whether there are too many of any types of retail, installment, credit, finance company accounts that may decrease your credit score.

Past Credit Applications 10%

The 'past credit applications' component looks at number of applications for credit cards. Too many applications may reduce your credit score.

As you can imagine, if you have a low percentage of available credit, few or no satisfactory accounts, significant amount of delinquent accounts, large numbers of inquiries about you credit and a high total debt and a low FICO score then it may automatically be assumed that you are financially irresponsible or more likely to commit theft.

Significance of the Credit Score

Credit Score Components

Factors Used to Calculate your Credit Score
Percentage%
Items that impact the Credit Score
Payment History
35
Lateness, delinquency, no payment, bankruptcies, liens.
Amount Owed
30
Large number of loans with high balances and balances too close to maximum limits will affect your credit scores. Ability to make large payment on installment accounts will improve your score. Small balances and no missed payments increases score. High limits with small balances will help the debt to credit ratio.
Length of Credit History
15
Long history with creditors is good. How long have you had the oldest or newest accounts will impact your scores? Short history with high balances is considered poor management
Type of Credit Used
10
Finance loans, mortgage loans, retail loans, installment loans or credit cards loans are evaluated. Is this a good mix, or are there are too many credit cards?
New Credit and Inquiries
10
Your credit score will decrease if you open multiple credit cards in a short period of time with no record of longevity with other creditors. Many inquires by others will also decrease your score. Your own inquires do not impact your credit score.

A Credit Report Inquiry may Reveal Secrets that may Create Obstacles for you

Courtesy of Public Domain via Pixabay.
Courtesy of Public Domain via Pixabay. | Source

How Prospective Lenders Use Low Credit Scores

If your credit score is below 680, you may be denied a loan or required to pay a higher interest rate. This hardly seems fair. The Lender will use a low credit score to determine your probability of defaulting on a loan within a specific time frame. [6]

Lenders will use the score to determine whether you are entitled to a line of credit and at what rate. Lenders use the credit score to determine whether they should deny or approve your loan application. A credit score of 599 may mean an immediate denial. A score of 700-749 mean mean a higher interest rate than a score of 750 and above.

A landlord will also use your credit report to determine whether you will default on your rent.

Managing Bad Credit may be Easier Said than Done

Courtesy of MIC 445 via Flickr CC 2.0 some rights reserved.
Courtesy of MIC 445 via Flickr CC 2.0 some rights reserved. | Source

How to Repair and Minimize the effects of a Poor Credit Score

Repairing a bad credit rating is not always easy. However, consumers who have defaulted on loans or have delinquent accounts may avoid the draconian effect of a perpetual poor credit rating by reducing the amount of debt owed, make payments on time, dispute debts, refinance; document recent approval for loan or credit; and explain the reason for bad credit to your prospective employer.


Reduce the Amount of Debt Owed

Reducing the amount of debt that you owe may be difficult for you. However, reduction of debt is the surest way of improving your credit score.

  • Pay to delete. If you have accounts that are in collection, simply making payments to collection will not improve your credit score. You must negotiate a pay to delete payment option for bills that are in collection. A pay to delete option allows you to negotiable removal of the negative information from your credit report in exchange for making a negotiated payment.

Follow these suggestions for crafting your pay to delete letter to the collection agency:

  1. Agree to pay a sum certain to satisfy the entire debt in exchange for their agreement to remove the information from credit reporting agencies and your credit files within 1 week of payment.
  2. Agree to pay approximately 25% of the amount owed to fully satisfy the entire debt. Remember that collection agencies purchase these bad debts for small amounts. As such, a 25% offer allows them to make a large profit. [7]
  3. Get the agency's signed agreement that the negotiated settlement will remain confidential.
  4. Be prepared to make the payment amount agreed upon and send your letter by certified mail with return receipt.
  5. Do not succumb to their first rejection. Keep insisting and negotiating for a pay to delete option.
  6. If the collection agency refuses to agree to a pay to delete settlement, then negotiate for a reduction in your balance and request a payment plan that you can afford.
  • Properly Manage Credit Cards: Limiting use of credit cards is usually a good idea. However do not close them. Closing your credit cards will actually cause your credit scores to decrease. Lenders will automatically close credit cards that are not in use. As such,you should try to buy something inexpensive once per month with credit cards that are rarely used.

However, if you cannot afford to make any type of payment on a credit card, then it makes sense to stop using them.

  • Try to make more than the minimum payment if possible
  • Make payments on debts with high interest rates first
  • Negotiate decreases in your interest rates
  • Set up payment plans with creditors

Unemployment Caused by Poor Credit Score may cause Hopelessness

Courtesy of D.C Atty via Flickr CC 2.0 some rights reserved.
Courtesy of D.C Atty via Flickr CC 2.0 some rights reserved. | Source

Make Payments on Time

Late payments are reported to all credit bureaus. Late payments will cause your creditors to increase your interest rate.

Making payments after their due date is instrumental in the reduction of your credit score. For example, if your credit score is 680, a payment that is 30 days late will reduce your credit score by 80 points; if your credit score is 780, late payment may reduce you credit score by 110 point s. [8] The more frequently that you are late, the further your credit score will plunge. Late payments are also costly as creditors may assess a $15-$35 late fee.

Try to make payments by their due date. A good idea is to mark due dates on your calendar or to set up cell phone alerts for all due dates.

If you must be late then try not to go above 30 days. Creditors will report payments that are greater than 30 days late to credit bureaus.


There are often errors in reports made by Credit Card Companies

Courtesy of State Farm via Flickr CC 2.0 Some rights reserved. Dispute any misinformation on credit cards statements and on your credit report.
Courtesy of State Farm via Flickr CC 2.0 Some rights reserved. Dispute any misinformation on credit cards statements and on your credit report. | Source

Dispute Credit Card Debts

Creditors will not hesitate to report disputed debts to credit bureaus. However, be aware that creditors make errors in many cases. The Federal Trade Commission (FTC) has reported that one in five Americans have mistakes in their credit scores. Mistakes on credit scores usual remain in place unless challenged aggressively by consumers as creditors are usually resistive to making corrections.

Get into the habit of checking your credit score. Checking your credit score will not cause your score to decrease. You should obtain your credit score from all three reporting bureaus. The credit scores from these three bureaus are usually close. However, there are times when negative information shows up in one agency report that is not reported on another. When this occurs, you should immediately begin you investigation by contacting your creditors and the credit bureaus and challenge the report that you believe is inaccurate.

Log into Equifax.com, transunion.com or Experian.com and enter the word ‘dispute’ in the search box to get directions on the online dispute process. These companies will reach out to the various creditors who reported the negative information.

The information will be removed if it was not verified. It will remain in place if verified. The credit bureau may modify the information based on new findings. [9]

Equifax, Experian and Trans Union are required to provide each consumer with one free credit report annually. Your free credit report can be obtained from www.annualcreditreport.com.

If you need information more frequently, companies such as Kreditcarma.com offers free credit score checks. Don’t hesitate to contact the credit bureaus to challenge information that is incorrect

Three Credit Bureaus

The three credit bureaus may reflect different information, Dispute all inconsistencies.
The three credit bureaus may reflect different information, Dispute all inconsistencies. | Source

Refinancing

If you are lucky enough to have equity in your home, you may refinance your mortgage and include your credit card debt in the package. Refinancing your credit card debt with your home mortgage will help to improve your credit rating.

After a refinance, you will be making one monthly payment to the refinance company at a much lower interest rate.

You will not be barred from using your credit cards after refinance. However, you should carefully evaluate the reasons why you had high credit card balances in the first place to prevent a repeat occurrence.

Refinancing offers you a clean slate with the credit card companies. Upon refinance of all your credit cards you may see your credit score suddenly change from 500 to 800.

Loans that are well Managed will Improve your Credit Score

 A well managed Loan will show others that you are financially responsible and will increase your credit score.
A well managed Loan will show others that you are financially responsible and will increase your credit score. | Source

Personal Loans


Despite your low credit score and feelings of hopelessness, there are companies that will extend loans to you. Be prepared to pay a punitive interest rates. Some companies will match you to a lender sometimes within 1-2 days.

Please be sure to read all information related to their rates and terms before applying to these companies:

Some of these companies are:

  • Credit.com
  • United lending services.com
  • Firstfinancial.com:
  • 247lendinggroup.com
  • Springleafinancial.com
  • Netcredit.com
  • BetterLoanchoice.com:
  • Personalcreditloan.com
  • Mtb.com
  • United States credit.com
  • Ifsloans.com
  • Ebadcreditspersonalloans.com

Remember that borrowing from Peter to pay Paul is not a good idea. Getting a personal loan after having bad credit issues is an option to be exercised only if you are desperately in need monies and need to reestablish your credit.

Courtesy of Morebyless vis Flickr CC 2.0 some rights reserved.
Courtesy of Morebyless vis Flickr CC 2.0 some rights reserved. | Source

Credit Cards for People with Low Credit Scores May actually Improve Your Credit Score

Courtesy of Lotus Head via Wikimedia Commons CC 2.0
Courtesy of Lotus Head via Wikimedia Commons CC 2.0 | Source

Credit Cards for People with Low Credit Scores

Despite the publicized disadvantages of credit card use, responsible use of credit card may actually help to improve your credit rating. Credit card companies report to the three credit card reporting agencies which will allow you to start rebuilding your credit.

You should not be surprised that there are special credit cards available to people with low credit scores. Companies like Creditkarma.com will match you with credit card companies that will extend credit cards to you.

Many of the cards are offered with limitations. Some of the limitations are:

  • A low credit limit between $250-$500
  • Opportunity to increase your credit limit after proving yourself
  • Some may require a bank deposit that will be used to fund the card.
  • You must agree to the high APR. A few may offer lower APR.

This is a short list of credit card companies that will offer you credit cards despite your bad credit:

First Progress

Horizon Gold

Capital One

Orchard Bank

First Premier Bank

Citibank

Digital Federal Credit Union

First National Bank

Explain the Reason for your Decreased Credit Score to Prospective Employers

Courtesy of Kendl123 via Wikimedia Commons  3.0
Courtesy of Kendl123 via Wikimedia Commons 3.0 | Source

TIPS

Closing all credit card accounts will not increase your credit

Checking your own credit scores will not decrease your credit score

Many Consumers have errors on their credit reports. As such, do not hesitate to dispute suspected errors.

Explain the Reason for Bad Credit to Your Prospective Employer

Most employers are aware of problems encountered by many Americans during the December 2007 through June 2009 recession. Many employers have also been personally impacted by the depressed economy.

Peoples' credit scores have changed over the past few years. According to MYFICO.com, the average credit score in United States is below 736 as of December 2013. [10]

If your credit report was impacted by a prior job loss, then you should explain the circumstances that led to the loss. Explain how a medical condition affected your credit without going into details. An employer should understand how decreased work hours and insufficient business would ability to manage expenses.

Credit Counseling May Help People with Poor Credit Scoes

Courtesy of Alan Cleaver via Flickr C 2.0
Courtesy of Alan Cleaver via Flickr C 2.0 | Source

Credit Counseling

People will chronically low credit scores and financial problems may benefit from credit counseling. Credit counseling agencies will help you establish a budget and help you to negotiate lower payments with your creditors. There are many local agencies available to you that are accredited by the Council on Accreditation and the International Organization of Standardization.

The organizations and government bodies listed below will direct you to local offices where you can get help:

  • National Foundation for Credit Counseling: http://www.nfcc.org/
  • List of Credit Agencies Approved pursuant to 11 U.S.C. § 111 http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm
  • U.S. Department of Housing and Urban Development. http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
  • Approved credit Counseling Agencies and Debtor Education Providers. http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyResources/ApprovedCreditAndDebtCounselors.aspx

Prior to accepting counseling you must ask whether the counselor is certified by the National Foundation for credit Counseling (NFCC).

Myths Related to Credit Score Increases

Conclusion

Having a low credit score can severely hamper your chances of succeeding in our present economy. Do all that is necessary to improve your credit, or you will continue to be misjudged by employers and denied credit by lenders.

Credit Scores Before and After

Your Credit Scores Can change if you take the necessary steps.
Your Credit Scores Can change if you take the necessary steps. | Source

References

[1] Bill aims to Stop Employers from conducting credit Checks. CNN Money. Retrieved from: http://money.cnn.com/2013/12/17/pf/employer-credit-checks/

[2] Johne, Marjo. Do Credit Checks really prove your job worthiness? The Globe and Mail. Retrieved from: [http://www.theglobeandmail.com/report-on-business/small-business/sb-managing/do-credit-checks-really-prove-your-job-worthiness/article567813/

[3] The Great Recession. The State of Working America. Retrieved from: http://stateofworkingamerica.org/great-recession/

[4] Senator Warren Introduces Legislation to Prohibit Employers From Requiring Credit Report Disclosure. Retrieved from: http://www.warren.senate.gov/?p=press_release&id=305

[5] Dranove, D and Milleson, Michael. Medical Bankruptcy : Myth Vs. Fact. Retrieved from: http://content.healthaffairs.org/content/25/2/w74.full.

[6] Settling the Credit Score: How Lenders Judge Consumers. Retrieved from: http://www.marketplace.org/topics/your-money/settling-credit-score-how-lenders-judge-consumers]

[7] Remove Collections From Your Credit Files by Using the Pay for Delete Technique. Retrieved from: [http://www.creditinfocenter.com/debt/pay-for-delete.shtml]

[8] How late Payments affect your credit scores. Retrieved from: https://www.creditkarma.com/article/late-payments-affect-credit-score

[9] Credit Report Disputes. Retrieved from: https://www.transunion.com/personal-credit/credit-disputes/credit-disputes.page]

[10] National Average Credit Score. Money-Zine. Retrieved from: http://www.money-zine.com/financial-planning/debt-consolidation/national-average-credit-score/


Other Resources

Sample Pay for Delete Letter. About.com: http://credit.about.com/od/debtcollection/a/payfordelete.htm

Credit Solution Program. http://www.thecreditsolutionprogram.com/about/

The Five Categories of Data in FICO Scores. http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Remove Collections From Your Credit Files by Using the Pay for Delete Technique. http://www.creditinfocenter.com/debt/pay-for-delete.shtml

The Great Recession. The State of Working America. http://stateofworkingamerica.org/great-recession/

The Average Credit Score. Credit.Com. https://www.credit.com/credit-scores/what-is-the-average-credit-score/

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    • cecileportilla profile image
      Author

      Cecile Portilla 3 years ago from West Orange, New Jersey

      Thank you for dropping by Eiddwen. I am glad that you found my hub useful.

    • Eiddwen profile image

      Eiddwen 3 years ago from Wales

      Interesting and very useful.

      Eddy.

    • cecileportilla profile image
      Author

      Cecile Portilla 3 years ago from West Orange, New Jersey

      Hi Denmarkguy:

      You are not alone. There are many people in this position. Unfortunately the banks are not concerned with people's individual problems. That is why laws that prohibit employers from using negative credit scores against employees are so important.

    • Denmarkguy profile image

      Peter Messerschmidt 3 years ago from Port Townsend

      Excellent and very thorough coverage of this important topic. Our personal woes were (and remain) because of unpaid major medical expenses and we HAD insurance. Most people aren't in a position to suddenly come up with $30K out-of-pocket... and when you end up with a court judgment against you... you end up kind of hosed, even if you live an incredibly frugal life.

    • cecileportilla profile image
      Author

      Cecile Portilla 3 years ago from West Orange, New Jersey

      Thank you for your comment Nell Rose. I hope tat my hub will be helpful to many!

    • Nell Rose profile image

      Nell Rose 3 years ago from England

      Great points here cecile, so many people get down on their luck, and it gets totally out of hand, what with loans and such that can make things a lot worse, this will be really helpful to anyone in this situation, nell

    • profile image

      Cecile Portilla 3 years ago

      Thank you for your comment DDE!

    • DDE profile image

      Devika Primić 3 years ago from Dubrovnik, Croatia

      Great hub! You made excellent and so helpful points here

    • cecileportilla profile image
      Author

      Cecile Portilla 3 years ago from West Orange, New Jersey

      Thank you for your comment Nadine. You are so right about trying to pay back what is borrowed.

    • Nadine May profile image

      Nadine May 3 years ago from Cape Town, Western Cape, South Africa

      This is an excellent article Cecile and I will share around. If every person who is heavenly in debt due to unforeseen circumstances stopped paying the interest charged, and just try to pay back what they borrowed, Banks might Wake up to the fact that they are adding more burdens out of pure greed. My article about living without money might just be the answer!

    • cecileportilla profile image
      Author

      Cecile Portilla 3 years ago from West Orange, New Jersey

      Thank you for your comment jtrader. So true that this could happen to anyone.

    • jtrader profile image

      jtrader 3 years ago

      Useful resource. It is so easy for this to happen to anyone- even people who have been careful with money all their lives. However, those who have formed good habits will recover faster from any setback.

    • cecileportilla profile image
      Author

      Cecile Portilla 3 years ago from West Orange, New Jersey

      Thank you for dropping by my hub Ubani. I totally agree that it is unfair to judge people by their credit scores!

    • ubanichijioke profile image

      Alexander Thandi Ubani 3 years ago from Lagos

      A very interesting write-up. Personally, i believe one shouldn't be judged by the credit score whatsoever, as equal opportunity for all represents fairness. on the other hand, high credit score doesn't necessarily guarantee that such individuals are of the best in terms of honesty and good conduct. Employers should be made to understand that.

    • cecileportilla profile image
      Author

      Cecile Portilla 3 years ago from West Orange, New Jersey

      Thank you for reading my hub buypreaciousmetals. Many people are going through hardships with severe consequences to their credit scores.

    • cecileportilla profile image
      Author

      Cecile Portilla 3 years ago from West Orange, New Jersey

      Thanks for stopping by my hub yourhealthmatters. I am happy that you found it comprehensive and easy to understand!

    • profile image

      yourhealthmatters 3 years ago

      Wow, cecileportilla! This article is extremely well-written, comprehensive, and easy to understand. I was struck by the use of credit scores for job applicant screening and saddened to see the statistic on health issues forcing bankruptcy. Another excellent hub, thank you!

    • cecileportilla profile image
      Author

      Cecile Portilla 3 years ago from West Orange, New Jersey

      Thank you for commenting billybuc. This is indeed an important subject!

    • billybuc profile image

      Bill Holland 3 years ago from Olympia, WA

      In today's economy this is a very important article, and my goodness you covered it all so well. Nicely done my friend.