The Effects of Bad Credit on an Organization


The Effects of Bad Credit on an Organization

In many contexts, the word good means the act that should be morally recommended when presented with a dilemma between choosing possible alternatives. Good is usually associated with virtue, and is the opposite of bad, which is morally wrong. It is the object of desire or the objectification of some emotion, and thus it may denote various things. The commonest examples of good are love, generosity, honesty, respect, cooperation, fidelity, trust, and truthfulness.

In everyday life, good and evil refer to two different things, but they frequently blend in our thinking about the good and the evil. When we speak of the good, we usually mean external happiness or well-being. An important component of the good is the attainment of an ultimate end. The attainment of this ultimate end is typically considered to bring with it anomoly, or joy, tranquility, and contentment. In some contexts the idea of the ultimate good includes our being content in dying; however, this definition can sometimes be taken to imply a rejection of one’s own immortality, or life.

Good credit scores are important to lenders because they give lenders an idea of an individual’s propensity to repay loans and to contribute to the economic standing of the lender. If an individual has a good credit history and meets other credit needs, lenders will consider them to be a high risk borrower, given the possibility that they may default on their loans or be unable to pay them back. Lenders therefore have a need to assess the risk of lending money to these borrowers by looking at their credit scores. If the individual has a good credit score, they will be seen as a high-risk borrower and they will be given low interest rates or fees on loans.

A negative credit score gives the lender the impression that the borrower may not be able to handle credit responsibly. This negative view can reduce the number of loans that are approved, reduce the amount that the lender invests in loans, and reduce the number of times that the organization gives loans to people with poor credit scores. The effects of having a low credit score on an organization are far-reaching, as many organizations charge higher interest rates to those with bad credit histories and require borrowers to pay out more in fees to cover the costs of their bad credit history. Organizations may also refuse to grant loans to people with low credit scores, which can lead to significant reductions in employee benefits, lower morale, and in some cases, employees filing claims for wrongful termination.

Poor credit scores can affect joint accounts as well, although the impact tends to be less severe than with credit reports. When people have more than one account open, they tend to be less likely to miss due dates on their joint accounts. Similarly, it is quite easy to cancel a joint account if it becomes overdue due to a change in address or a permanent change in employment. This makes it far easier for people to avoid incurring late payment fees on shared accounts. But even though this scenario makes cancellation of shared accounts easier, it can also make it far harder for a person to recover money that was lent to them under poor credit scores.

One of the ways that an organization can use to improve its image is to take steps to prevent discrimination based on credit scores. Poor credit reports can prevent employers from giving promotions and raises to employees with low FICO scores. It can also prevent a person from obtaining insurance coverage based on their FICO scores, which could affect day to day life. In other cases, it could lead to lawsuits, which would further damage an organization’s reputation and lead to large fines.