As a financial advisor, you likely have some clients who are eager to invest and plan for the future, but go through seasons when they struggle with cash flow. Clearly, the latter can significantly impact the former, and when that client also has a poor credit score, the challenges mount.
A bad credit score typically isn’t the result of one poor decision or bad transaction — it worsens over time through a series of events. Perhaps a client fails to pay bills on time, maxes out credit cards, has excessive debt or has a foreclosure in their credit history.
The consequences of poor credit scores have the ability to compound a situation, making it difficult for an individual to get ahead. In worst case scenarios, landlords deny rent applications or utility companies won’t extend their services. Some employers who review credit history as part of the job application process might pass by an applicant with poor credit in favor of another who scores higher.Read More