Credit Me Unemployed

Think your credit is your own business? Think again! We all know there are things employers cannot ask when interviewing, but did you know, credit checks are not only allowed, almost 50% of mid-to-large sized businesses seeking new recruits utilize a standard credit report check. Some even require them for promotions.

WHY A CREDIT CHECK?
Most employers use a credit check as a simple, inexpensive way to verify your identity, but credit reports offer so much more!

Employers use these credit reports to see whether you are responsible and reliable – whether or not you can manage your own money before risking their own. They also use it to determine whether the salary is sufficient. In addition, employers can see who else has requested a copy of your credit within the last two years. They use this to determine your loyalty to their company.

CAN MY CREDIT REPORT REALLY PREVENT ME FROM GETTING A JOB?
Bad credit reports cannot only prevent you from gaining employment, it can prevent you from moving up the corporate ladder! Employers may feel a bad credit rating means you are a “high risk”. After all, bad credit may lead to under-performing on the job secondary to added financial stress. It also suggests substantial character flaws and poor judgment. You may be considered a high risk for theft, not to mention to them, you have obvious difficulties with managerial skills.

CAN THEY DENY ME SOLELY BASED ON MY CREDIT?
Though employers cannot discriminate based solely on a credit history, it is difficult to ascertain exactly how they utilize the information at their disposal. After all, a statistical connection can be concocted between a variety of different characteristics, however, this does not mean it becomes useful information. But, in truth, many companies take great stock in what a credit report says about you.

CREDIT REPORT FACTS
Did you know as many as 79% of credit reports contain errors – 25% serious enough to cause a denial of future credit?

Did you know, close to 90% of the larger personal auto insurers utilize credit report checks to determine whether or not to insure you, and at what rate?

Did you know, negative information can stay on your credit report for as many as seven years – bankruptcies up to ten?

Did you know, too many inquires on your credit report history will have a negative affect on your rating?

WHAT CAN I DO?
In today’s society, it is all too easy to get caught up in a financial downfall. With juggling family and employment demands, it is common to over-extend yourself financially. Though sometimes in our lives, we may experience difficulties with our credit, there are a few things that may help. First and foremost, you should attempt to keep credit histories clean. Talk to creditors to arrange a more comfortable payment schedule, or consider consulting a credit counselor. You may just need professional advise.
You should obtain a credit report once per year and correct any discrepancies, no matter how small they may seem. And, when going for that job, be up-front with your would-be employer about your credit rating. Though you still may not get that position, at least it shows you are willing to take responsibility for your problem. Employers are seeking hard-working, responsible individuals – let them know, despite a recent run of bad luck, you are that person! Let them know your plans to rectify the situation, and focus on the positives!

CAN’T READILY FIX THOSE CREDIT PROBLEMS?
If it is not feasible to readily fix your credit problems, don’t despair! If that company does not appreciate your recent financial downfalls and recognize your positive qualities – forget Ã?¯Ã?¿Ã?½em and move on! Though you may not land that dream job, there are many more companies out there who will appreciate your hard work and dedication. Be diligent in your efforts to rectify your current financial situation.

And, if you feel you’ve been discriminated against because of your credit, seek legal counsel. But, a word to the wise – is legal action worth it? Companies frown on any legal action against them. Besides, you might not want to work there after that anyway – if they cannot recognize your skills and dedication, find a company who will!

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