The never-ending spiral of a poor credit score - Ashland Community Federal Credit Union

The Never-Ending Spiral of a Poor Credit Score

The Never-Ending Spiral of a Poor Credit Score

Why taking “no” for an answer can flush more than money down the proverbial drain

A low credit score makes it harder to get affordable credit.  That is a fact.

But the score isn’t the problem. The problem is the folks who say “no” to a loan based on credit score alone.  This does more harm than good and can trigger a downward spiral for everyone. 

Here’s how the Poor Credit can spiral out of control:

Let’s say Maria, a hard-working mother of two, unexpectedly loses her job.  It happens.  At the same time,  she has a health scare that causes a big bill.  With no job, the bills gather. 

Her credit score drops.

Maria finds another job, but it requires more travel. She needs reliable transportation and applies for a car loan.  The bank turns her down based on her credit score.

So Maria empties her savings to pay cash for a cheaper car.  The car needs work so she maxes out her credit card and promises to pay the minimum later.

Or she pays outrageously high “buy here pay here” rates and overpays for that same cheap car.  When she can’t make the payments, they repossess it  And of course, without a car, she can’t work.  The medical bills remain unpaid and the problem gets worse.    

All the while, each of these factors lowers her score even more.  And so, the problem compounds.

But what if someone had just asked her about the job and her medical issues?  What if a lender had said “yes” based on her story, instead of “no” based on her score? 

Maria would have gotten the loan and bought a reliable car.  She would have kept the new job and begun to pay those bills. She’d be building back her credit score. Everyone wins!


At the Ashland Community Credit Union, we choose people over profit.  It’s the old adage of helping people first so that we can help each other next.

In short, we choose to rise together to the top, instead of spiraling to the bottom.

If you think you won’t qualify, let us try.  We want to give you a loan unless you can talk us out of it. It’s a no-brainer for us at the Ashland Community Credit Union.

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Ashland, Ohio 44805
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