Thursday, July 9, 2020


Your Backup Plan When Your Credit Score Dips.

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(ThyBlackMan.com) Our credit scores have long been touted as one of the most important figures to carry through our adult life, to the point where our self-worth gets tied in with a number. While the average credit score in the U.S. is 678, it’s baffling that three generations have a score below this average figure. Gen X sits at an average of 658, Millennials at 638, and Gen Z at 634. There are three major areas that are affected by poor credit scores: job applications, credit applications, and home rentals. So what is Plan B when this all falls apart?

Building Skills For A Different Market

Recruitment agencies are now requiring applications to grant permission for them to do a credit check. 16% of employers ran checks on all of their applicants. There are certain industries where this is an essential component in the screening process, as bad debt could elevate the possibility of fraud. The financial sector, as well as accounting,  requires applicants to have a good financial track record. But financial hard times can fall on people in this industry too, and it can be tough to diversify skills to qualify for a different job. If you happen to be in between jobs, it will be tough to get back in the industry again under those circumstances. You may have to disclose the information upfront to the recruiter in a bid to be open and honest, as some employers might even assist with a remedial process. The alternative is to start diversifying your skills to apply for a job in a sector that won’t require a credit check.

An Alternative To Traditional Finance

A credit score is first and foremost used to apply for credit. There are a number of credit options available to those looking to improve their credit score. Those who want to try something different should consider alternate means of finance, such as applying for a loan against a cryptocurrency. If you happen to have funds invested in Bitcoin, you might have access to finance. The best part of this finance is that you don’t need to have a good score, as the lending is done based on the security provided by the cryptocurrency.

House Share Or Save Up

While some landlords won’t be happy with a renter that has a low credit score, there are ways to make them more amenable to your situation. For starters, it’s important to be upfront and honest about your credit score, and immediately offer a solution on how they might mitigate their risk. There are a number of ways to do this – for instance, by offering to up the security deposit, paying a “risk” fee, or even taking on a housemate with a good score to reduce the risk. Things that may work in your favor here include a steady income, progress with your payments, and playing open cards with your landlord in terms of setbacks.

There are ways to beat the system even if tough financial times have made their rounds. While a good credit score might not be everything, it sure helps to get it right back up there.

Staff Writer; Bobby Wall


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