Personal Finance Editors at CreditSources.org Announce 3 Ways a Bad Credit Score Can Cause Trouble

SAN DIEGO - May 14, 2013 - PRLog -- Bad credit scores are called “bad” for a reason, but often times consumers don’t understand just how drastic the negative implications of poor credit can be. In fact, a recently published Forbes article (http://www.forbes.com/sites/ashleaebeling/2013/05/13/five-credit-score-misconceptions-that-can-cost-you/) revealed that the misconceptions consumers have toward their credit scores are potentially costing them tens of thousands of dollars according to the Consumer Federation and Vantage Score Solutions conference.

With this concern in mind, CreditSources.org (http://www.CreditSources.org), an authority site on bad credit and loans, today released the top ways a bad credit score can be harmful with the hopes of encouraging consumers to better understand and focus on their credit scores.

1. Property Rentals
Just like when consumers sign up for a credit card or utilities service, and the lenders requests a copy of their credit report before providing the service, the same goes for landlords.

Usually when consumers find potential houses or apartments for rent that they are interested in renting, landlords will check out their credit reports to determine how responsible they are at handling credit. If landlords find missed payments and outstanding debt during the credit checks, it may deter them from allowing the consumer to sign the lease. On the other hand, landlords may accept the bad credit consumers as tenants, but they may hike up the fees or raise the price of the security deposit to cover the future tenants' risk factor.

2. Loan Requests
Whether consumers want to apply for a mortgage, an auto loan, or a cash advance, bad credit can affect the price of fees and rate of interest.

Lenders prefer to see high credit scores, which reveal that the consumer maintains a low credit utilization rate and pays bills on time. Therefore, if the loan applicant has a terrible credit score, the lender will either deny the applicant or raise the interest rates to accommodate the risky transaction. Although there are bad credit lenders who more generously offer loans to consumers with poor credit scores, bad credit loans do have pricier fees associated with them than traditional loans.

3. Job Applications
Currently, in all but seven states, it is legal for a job recruiter to request a copy of a job applicant’s credit report during the interviewing and hiring process. This means that a bad credit score could potentially cost a consumer an employment opportunity.

Advocates of credit checks on potential employees insist that the job candidate’s credit report reveals the candidate’s level of responsibility, and is especially telling if the job requires the candidate to handle finances. Conversely, those against job applicant credit checks argue that influences such as medical bills and divorce can lower credit scores, which should not affect one’s ability to perform the job.

Regardless of these viewpoints, in the states in which the practice is legal, a bad credit score could cost a job hunter a potential opportunity.

About CreditSources.org
CreditSources.org is a leading authority site on credit related consumer services, personal finance, unsecured personal loans (http://www.creditsources.org/loans.html) for people with poor and bad credit, credit sources, credit cards, and all things credit.