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Poor credit score can get your job application get rejected

By George Hauser
Published: Monday, October 4th, 2010

The credit score is the three-digit number that comes from the credit bureau. The figures show how good or bad they manage their finances as a borrower. The credit score is based on factors like credit history, credit card purchases, payments, loans mortgages and credit inquiries you’ve made in the past. Before a lender decides whether you get approved of a credit card or a loan, they have to first check on your credit score. When they are impressive then you sure will get the approval.

But nowadays, credit score aren’t just checked by lenders but by employers as well. A person with a poor credit score may not qualify for a job. This had been a debate in many states. For some advocate groups, checking on one’s credit score before getting a job is not at all fair and against the individual’s privacy. But there are now few states which have passed a legislation prohibiting this practice. While this legislation had been proposed to other states, the issue still is pending on most places. The latest state to have adopted the law prohibiting employees to run a credit check as a part of their hiring process is Illinois.

Most employers insist on the need of running a credit check on job applicants for the reason that they wanted to make sure that they are employing people who can manage their finances and work-related responsibilities as well. The credit score is very important especially when the job requires money handling. The credit score has become the basis of a person’s future performance in the company. It is also said that when an applicant with a very poor credit score and has a lot of payable can have the possibilities of embezzling fund from the company. Or if you are a person with a record of delinquencies then you are perceived to submit your tasks late.

Now, even if your credit score only takes 0.5% of the hiring process, it still is important to keep your credit score good for some other reasons. When you need a loan for a car, house renovation or a new credit card, you won’t be waiting in vain for the approval especially when you present your lender good credit scores.

As a way of improving your credit score, keep your card usage to only thirty percent of your credit limit. Always make sure that you don’t carry a balance on the next month’s bill. Be very mindful of your due date so you won’t make late payments and avoid incurring penalties. In case you make a late payment, make it a point to make the payment within thirty days after the due date. This is a trick so as your credit score not to be hurt.

Having a good credit score can bring a lot of advantages to a person and it takes a great deal of practice and discipline before one can keep it in the right track. Keep your scores high and you’ll enjoy the benefits of doing so.

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