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An individual is given a score on how well one handled past financial obligations. Late payments, defaults and bankruptcy can pull down the score. The lender will then use the information about the individualâs credit history to determine whether it would be worth it to lend to that person. A bad credit score or a bad credit history will cause the lenders to consider a consumer to be high risk borrower. It might lead to a rejection of the application of a consumer for a loan. Men may apply but we will deduct 23% from your income to put you on an even paying field with women (just joking). If you feel you have been the victim of a loan scam and are concerned about your personal financial information, contact your banking institution, and the three major credit bureaus.