I remember way back when I first started blogging about our debt. I was contacted by a debt company that deals with debt settlement. I asked the gentleman who contacted me flat out…what will happen to my credit score if I did this?
He skirted around the issue a bit, and basically said, “What do you need a credit score for anyway?”
Thinking about it a little bit, maybe he had a point. If you want to avoid debt and obtaining new debt, who cares about your credit score? Go ahead and tank it since you won’t be trying to obtain new credit.
But wait a minute. Some employers pull credit reports on potential employees.
“…most people also don’t know that cellphone companies, landlords, and home insurers often use the scores as part of customer background checks.”
Somehow, having a good credit score has been linked with having good personal responsibility. Since you have a good score, you are a good person. Of course, I don’t buy that for a minute. A number like that can only tell you so much. But companies outside the financial district are using it to judge you. That upsets me more than a little bit.
I told the gentleman with the debt settlement company that I wasn’t interested. Debt settlement wasn’t an option for me at that point. We are able to pay off our debt, given some time to do it. Now, if we were facing bankruptcy versus going with a debt settlement company…that would have been a different story.
Since it seems like the number of businesses/companies using your credit score as a type of background check is increasing, I wonder what the future will hold for credit scores. I personally hope the importance of credit scores decreases outside of the financial industry.