Does Everyone Use Credit Scoring?

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We will often hear about the importance of credit scoring and it can sometimes be a worry to us that it might cause problems for us if our credit score is not very good. However, it is wise to think hard about whether this will really be a problem and whether it is something that everyone uses.

Employers

You may be worried that you might not be able to secure a job if you do not have a good credit score. You may be concerned that if an employer looks at your credit record that t may put them off employing you. The good things that not all employers will look at it. You will fid that it is only if you are in a job where you could be bribed or one where you are handling money that employers will get worried about your credit score. In most other positions, this will not be something that they will worry about and this will mean that it should not usually impact whether you are likely to be able to get a job or not.

Landlords

You will find that if you want to rent a home then it is very likely that your potential landlord will want to take a look at your credit score. They will be interested in finding out whether you are going to be able to be trusted to make your rent payments on time. There will be some lenders that will be more lenient than others though and so it is possible for even those people that have a poor credit report to be able to secure a rental agreement. It may mean though, that options are reduced and you may not be able to secure the property that you really want, you may have less choice about where you can live.

Lenders

Most lenders will want to have a look at your credit record. They will want to check to see whether they feel that you will be capable of repaying the loan that they are offering to you. They will hope that you will have the capability of making most or all of the repayments on time so that they get the money back that they have lent to you. Most will check to see how well you have managed this in the past and how well you are managing it now. They will look at regular payments as well as loan repayments to see whether you are managing to repay them on time and think about whether they will trust you to do the same with the repayments on their loan.

It is good to note though, that some lenders will be stricter than others. There are some that will be prepared to lend to those who have a worse credit record but they will charge them a higher interest rate. There will be others that will be happy to do this without a credit check like this at all. There are some lenders, such as those that provide payday loans, instalment loans and guarantor loans, that will lend people money even if their credit rating is really bad. They will not even look at it. They will lend small amount to people by way of a payday loan but if they want more money, they will provide them with a guarantor loan as long as they can find someone or is willing to be a guarantor for them.

So, you can see that credit scoring is important but you will find that there are still some things that you can do even if you do not have a good credit score. So, although, you can manage, it can best to try to improve your credit score as much as you can, but you should not panic if it is not in the best state. 

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