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Credit Report News, Tips & Advice « Credit Reports > Credit Report Advice > Don’t let your credit report affect your job prospects

Don’t let your credit report affect your job prospects

By Andy Snyder
Published: Monday, December 28th, 2009

Credit is the most important factor in financial matters in the United States. Credit is when a borrower borrows some money to pay for goods and services from a creditor. It also includes a promise to pay the money back in periodic instalments with no delay in payments. Your entire credit history will be listed on your credit report. Details of every single credit along with any late payments and due amounts will be mentioned. Your credit history will be checked every time you apply for a loan or a credit. The credit report will decide whether you get the loan and if you do at what interest rates.

The fact that credit history affects your future investments is common knowledge. However, credit history and reports affect other aspects of your life too. Credit report can affect your job prospects as well. Very often, your credit report might loo bad because of the fact that you are out of a job. However, the credit report itself might stop your from getting a new job. In such a scenario, a credit repair process is much needed as you need a job to clean your history and to get the job you need a clean history.

Scanning the credit reports of potential employees is a legal and is performed regularly. As much as forty two percent of employers scan the credit reports of potential employees. This forty two percent includes the government of the United States. Whether a credit check is needed or not is decided by the position you are applying for. A really high credit card balance and a couple of late payments might cost you the perfect job.

Credit checks are mainly conducted on employees who might be coming into contact with some of the company’s money. Some employers even use the credit report to determine the future employee’s character and judgement. A bad credit history will mean the person has taken a few bad decisions financially. If a person is in debt or are financially not very sound, potential employers might see this as reason to be dishonest. Using the credit report to determine character and judgement is very rare, but it is being done.

Take care to know what you are signing when you go in for an interview. People usually have to sign quite a few documents and a simple credit check approval form might be slipped inside. Take care to see what you are approving. Do not hesitate to ask if you do not understand the document. You can also ask your interviewer why the credit check is needed and if it is relevant to the job.

The only way to make sure your credit history is fine is credit repair. Undertake some repair work and work on improving your credit history. This will greatly help your job prospects and will also help with other finances. Fix and correct errors. Make sure investigations are conducted and errors that are negative and might harm your prospects are removed.  Be honest and answer any questions about bad credit truthfully. Explain the situation and why you took the measure you took.

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