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With Employer Credit Checks, Poor Credit Can Hinder Your Job Hunt
You aren’t likely to see “good credit” listed as a required skill for many job postings. But thanks to a growing number of companies conducting employer credit checks, many job seekers are realizing poor credit can cost them employment.
In today’s job market, the unemployment rate is high and the pool of talented job candidates is vast. Employers have the luxury of being as choosy as they like. And with employer credit checks less expensive than they once were, companies may choose to select candidates with clean credit, The New York Times reports.
As unfair or harsh as the practice sounds, it’s by and large legal at this point. But lawmakers in several states have proposed legislation to restrict the use of employer credit checks in the job application process.
Until then, follow these 4 steps to ensure a low credit score won’t affect your job eligibility:
1. Know your credit score before the employer credit check. By law, you are allowed a free annual credit report from each of the 3 reporting agencies: Experian, TransUnion and Equifax. Before applying for a job, request your report to determine how healthy or unhealthy your credit actually is.
2. Check your credit report for any errors. If you notice any wrong information, first contact the credit reporting agency in writing to contest it. The agency will then work to either verify the information or delete it from your report. If the information is deleted, a corrected report can be sent to anyone who received a copy during the past 2 years for employment purposes. If the investigation does not end in your favor, you can have a statement of dispute added to your report.
3. Work with a credit counselor to improve poor credit. Credit counseling services can guide you through the process and offer valuable information to help you improve your situation. Some counselors charge for their services, while other nonprofit counselors offer their services for free.
4. Use a credit monitoring service. These services monitor your credit profile on a daily basis and alert you to any changes reported by each of the 3 reporting agencies.
