Question

Identify and describe 5 situations where a credit score determines the outcome of one's application. (For example, applying for a credit card results in a decision influenced by one's credit score.) Are you familiar with an example where someone was received an unfavorable outcome, due to a lower credit score?

Answer 1

Five situations where credit score determine the outcome of one's application are as follows-

A. When the individual is applying for the mortgage loan

B. When the initial deposits are required for obtaining a smartphone, then also credit score will be needed.

C. Initial deposits are also required for obtaining cable services and credit scores will be needed.

D. When we are applying for change in the rate of interest of the credit card, then also, our credit score plays an important role.

E. When we are going to take a house on rent then also our credit score will be needed and it will decide the outcome to a large extent.

Yes, I am familiar with unfavorable outcome because one of my friend was denied the home loan because he did not have enough credit score and hence, he was not issued with the home loan.